Building a Crypto Portfolio Starting with £100, £1,000 or £10,000

One of the hardest things for new Crypto investors is knowing what kind of assets to include when building a portfolio for the first time. I have been asked this a lot, and it is a difficult question to answer as I never like to tell people what investments to make. Also, the type of portfolio that I would put together is very dependent upon the size of the initial investment.

The questions I get asked are often quite similar. Should I include Bitcoin? Do you think it will still go up? Should I include Ethereum? Are there any small coins which you think will go up which I should include?

I thought it might be helpful to explain the type of portfolio I would build if I was starting today but with the experience I have gained so far. I will do this with three different starting investment amounts, these being £100, £1,000 and £10,000. If you are not from the UK, you can easily convert this into your local currency using www.xe.com.

A couple of important notes around this:

  • This article could be read at any time, and therefore in the future, my choices may be different as there may be coins I would no longer invest in or new ones who have come to market
  • The market conditions could be wildly different depending on when this article is read, it could still be in a huge rally or have entered a bear market
  • This should not be taken as investment advice, I am not a professional, Crypto markets are highly volatile, and you may risk losing your money

If you are just getting into Crypto and are still a little lost, it may be worth taking some time to read my Beginner's Guide before continuing.

£100 Portfolio

For some, this may seem like a small place to begin, but many people have little disposable income, and I also accept there may be others living in parts of the world where this is a significant amount of money. I don't believe the size of the initial investment should be a barrier though, Crypto markets are by nature global and present anyone with the chance of building a profitable portfolio.

With a small amount to invest, I would start with a nice and tight portfolio, investing in only five coins and all from my tier 1 stable growth coins. This will de-risk the portfolio, allowing it to grow with the market.

  • Bitcoin - £25
  • Dash - £25
  • Ethereum - £20
  • Monero - £20
  • Litecoin - £10

Note: I have not included NEO within this portfolio because I think NEO may be unstable in the coming months and is not required for such a small portfolio.

Bitcoin

I would always include a position within Bitcoin for any Crypto portfolio for a couple of reasons. Firstly it is the leading Crypto coin and often sets the market trend, and secondly, it has proved resilient through all market cycles. Bitcoin has the highest chance of becoming a truly global decentralised digital currency, and if this happens, then it will continue to increase in value.

 The chart here for Bitcoin shows how well the price has performed this year and although we might hit some choppy waters as we hit key milestones, Bitcoin should continue to grow in value over the next three years.

The chart here for Bitcoin shows how well the price has performed this year and although we might hit some choppy waters as we hit key milestones, Bitcoin should continue to grow in value over the next three years.

Dash

Dash is my favourite of all cryptocurrencies and is the coin which I believe has the highest chance of challenging Bitcoin as the leading Cryptocurrency. I love their focus on user friendliness, and their decentralized governance protocol ensures that decisions around changes to the Dash core code can be easily made, something which has become an issue for Bitcoin in the past. The price of Dash has performed very well this year, mainly growing within a stable price range.

 The chart for Dash shows why I love this coin so much. The lines on this chart are from a tool called a pitchfork which allows you to track upper and lower price ranges. Dash has demonstrated stable growth most of the year and recently broken out to set to highs and sit in a new, higher price range. I love coins which have stable growth.

The chart for Dash shows why I love this coin so much. The lines on this chart are from a tool called a pitchfork which allows you to track upper and lower price ranges. Dash has demonstrated stable growth most of the year and recently broken out to set to highs and sit in a new, higher price range. I love coins which have stable growth.

Ethereum

Ethereum has had an exciting year, growing over 4,500% in value and firmly taking the number 2 position in the Global Market Cap charts. The price took a significant hit during the June/July correction when it dropped from $410 down to under $140, a 65% drop. The price has though made steady gains back and is looking like it will set an all time new high soon. The big drop was only natural after such huge gains alongside a wider market correction. I think that it will continue to go from strength to strength.

 After a rapid price rise the retracement was only to be expected. The current growth trend feels much more stable.

After a rapid price rise the retracement was only to be expected. The current growth trend feels much more stable.

Monero

Crypto investors are increasingly demanding privacy with their Crypto trading and there are many privacy focused Cryptocurrencies within the market. The leading coin by market cap is Monero which has demonstrated resilience and stable growth. I see a very bright future for Monero and would expect the price to continue to rise.

 After steady gains through the year Monero has seen a huge spike in price recently. I have always felt that it was undervalued and is now rightly a +$1bn top 10 market cap coin.

After steady gains through the year Monero has seen a huge spike in price recently. I have always felt that it was undervalued and is now rightly a +$1bn top 10 market cap coin.

Litecoin

Litecoin has had a great year after spending years bouncing around in a very low price range. The scaling issues with Bitcoin presented Litecoin with an opportunity to demonstrate to the market how it can lead the way in rolling out solutions. Despite Bitcoin now having rolled out Segwith, Litecoin has continued to show its advantages and its price has continued to grow. I had considered letting it go before, but it is now a long term hold in my portfolio.

 The chart shows how Litecoin has made solid gains through the year within a nice tight range.

The chart shows how Litecoin has made solid gains through the year within a nice tight range.

£1,000 Portfolio

For a £1,000 portfolio, I would create two tiers of investment, expanding into a few other nice solid, strong performing coins.

Tier 1 - 70% (£700):

  • Bitcoin - £175
  • Dash - £175
  • Ethereum - £140
  • Monero - £140
  • Litecoin - £70

Reasons for these coins have been explained before.

Tier 2 - 30% (£300):

  • Factom - £50
  • MaidSafeCoin - £50
  • Iconomi - £50
  • Basic Attention Token - £50
  • Syscoin - £50
  • Komodo - £50

    The inclusion of the second tier of investments diversifies the portfolio further and gives the opportunity for larger gains should some of these coins make rapid moves. I have kept the level of investment in each coin the same as they have yet to prove and establish market positions like the top 10 coins. 

    • Factom: offers the promise of immutable records. A quiet and arguably dull coin which could nicely disrupt a multi £trillion industry. Price growth has been steady for the year, and it has proven a resilient investment.
    • MaidSafeCoin: is a next generation decentralized and secure network. It has also proven resilient during market cycles and shown steady price gains. If it can achieve its goal, then it has the chance of being a multi $bn coin.
    • Iconomi: is a platform for the management of digital assets. A tier 1 investment coin for me but in this size portfolio, I would include it within the second tier as it is less established. Price growth has been solid up until the launch of the platform, and I believe as they expand their user base the price will continue to demonstrate strong growth.
    • Basic Attention Token: is a token to improve the efficiency of digital advertising. This is a personal favorite of mine as I used to work in the industry and I am aware of how much money advertisers are wasting. After the price dipped after hitting the market, it is now showing strong growth, and I expect this to continue as they deliver a product to market.
    • Syscoin: allows businesses to build services on the blockchain. The blockchain which sits behind Cryptocurrencies enables companies to develop more efficient systems, and Syscoin is building a network to provide businesses with tools access to it. A strong performing coin which I expect to continue to grow as they roll out real world business use cases.
    • Komodo: provides security to third party blockchains. A personal favorite of mine, Komodo has a strong team behind it, and I expect the price to continue to grow.

    £10,000 Portfolio

    With a £10,000 portfolio, I would create three tiers of investment, expanding again to allow for some more speculative investments:

    Tier 1 - 60% (£6,000):

    • Bitcoin - £1,500
    • Dash - £1,500
    • Ethereum - £1,200
    • Monero - £1,200
    • Litecoin - £600

    Reasons for these coins have been explained before.

    Tier 2 - 30% (£3,000):

    • Factom - £500
    • MaidSafeCoin - £500
    • Iconomi - £500
    • Basic Attention Token - £500
    • Syscoin - £500
    • Komodo - £500

    Reasons for these coins have been explained before.

    Tier 3 - 10% (£1,000):

    • Tokencard - £100
    • iExec - £100
    • Zcoin - £100
    • Zencash - £100
    • Mothership - £100
    • LBRY Credits - £100
    • Patientory - £100
    • Verge - £100
    • Chronobank - £100
    • Swarm City - £100

    The inclusion of the third tier of investment allows for a few speculative investments in smaller exciting projects which have the potential for rapid growth and significant returns. They only represent a small part of the total portfolio and as such limited risk to stable growth. I have kept the level of investment in each coin the same as it will be difficult to predict which will perform the best.

    • Tokencard: a smart contract powered debit card
    • iExec: distributed cloud computing
    • Zcoin: private financial transactions
    • Zencash: private transactions
    • Mothership: a digital asset exchange
    • LBRY Credits: a digital marketplace
    • Patientory: secure storage and management of health records
    • Verge: secure and anonymous Cryptocurrency
    • Chronobank: blockchain for the recruitment industry
    • Swarm City: a decentralised commerce platform

    Coins Which Nearly Made It

    The following are coins which nearly made the list but I sacrificed because I wanted stable growth coins with a price history or small market cap coins as speculative investments:

    • OmiseGo
    • Lisk
    • Ardor
    • Ark
    • Blocknet
    • Waves
    • Wings

    Next Steps

    If you decide to enter the world of Crypto investment then I would recommend you consider the following next steps:

    Please note: do not take what I have said here as investment advice, I am not a professional trader, and Crypto markets are highly volatile. Make sure you research any investment you make and understand the world you are entering. Also, do not invest any money you can't afford to lose.

    Please do let me know if you have any questions, I answer all emails.