The IDEAL Portfolio to Profit From This Bull Market

If you feel like you've done all the homework with your crypto portfolio but you're still underperforming, you're not making the returns you want, well, in this video I'm going to share with you probably why your portfolio is underperforming, how to fix it and absolutely nail this bull market. I've been working in this space now for seven years full time and I run Australia's leading crypto research company. I've worked with thousands and thousands of people along with our 10 full time staff here to help work on crypto portfolios through data and frameworks to help you absolutely crush the bull market.

So the first thing that I see most people make and their biggest problem when they're looking at their portfolio is ultimately over indexing on altcoins, they'll come to me and say, ben, I want to increase my risk, I can take on more risk. So they go and buy a bunch of altcoins. And what's happened over the last 12 months is the reality is that Bitcoin has actually outperformed pretty much everything against most the altcoins. Actually only 24 altcoins have actually outperformed Bitcoin over the last year. There have been some other assets that have performed well, especially in the meme coin space. But the reality is unless you're holding majority Bitcoin, a lot of your portfolio is going to be underperforming. Now the big winners over the last 12 months have been Solana as well. If you go into Solana when it had that big dump around the FTX saga, you've obviously done really well as well. And the meme coin category has performed extremely well with a lot of excitement around the Solana chain and also the base chain. But the biggest losers since August have been some of the big sectors that I know a lot of you invested in. So ETH DeFi is down 19%, ETH is only up about 10%, layer 1's down 15%, layer 2's and modular blockchains are down 60% and also Cosmos and other DeFi projects down 67%. So a lot of the older chains or the older project, if you're still holding on from previous cycles, have massively underperformed and only a select few individual coins have performed well. If you have a look at this chart here, here is a sector overview of the returns as of a few weeks ago. So if you look in the layer one space, Ethereum has done really well. Solana really well. But a lot of the other layer ones have performed extremely poorly. And that is because there is an oversaturation of layer ones. There are so many layer 1 blockchains, so many people coming in creating copycat projects, trying to create the same stuff. I think the only real layer 1 blockchains that will really survive and do well in this cycle is the next gen Layer one. So that would be Ethereum, Solana also, you know, Aptos, Sui. These sort of projects are going to do really well, but for a lot of the older chains, I think they're going to get washed out with the, you know, over, you know, circulation of these projects and just, you know, how little capital is coming in. The modular blockchains and the layer twos have been absolutely annihilated. I did buy Matic about a year and a half ago and recently sold it. You can check out my video where I shared why I sold that project and why I was wrong in the layer two space. It's severely underperformed. Meme Coins have done really well. I think that will continue to perform well. Meme coins are one of those tokens that are very pure in nature. There's no VCs coming in, there's no token unlocks and they just represent that community online digital ecosystem. So I think Meme coins will continue to do really well. Defi, I'm still a big fan of Maple. I'm an investor in Maple's actually done really well over the last year or so, up about 120%. But if you look at over the other DEFI projects down 55%, 60%, a lot of these projects have been pumped into in the last 12 months or so. Solana Defi has done okay Cosmos and other miscellaneous. Defi absolutely annihilated. And then AI has done relatively well depending on the project and depend as well. So really the big things is why your portfolio might be underperforming is the portfolio allocation. If you have low Bitcoin and maximum altcoins, it's going to be performing reasonably poorly. Unless you've been lucky on some of the Meme coins and maybe you're overexposed to things like Ethereum layer 2s or DeFi or maybe overexposed to old layer 1 chains, you're going to be doing really poorly. As so I think, you know, reallocating and starting to think about the future. Those narratives I think are going to do well are those like AI, you know, RWAs next gen layer ones and Bitcoin, I really think are going to, you know, take narrative, maybe some gaming as well. Now, if you look at some of the other sectors across the industry, you can see here RWAs have done really well, but everything else has been low. You know, from file storage, gaming, defi staking, data availability. All of these are done reasonably poorly, really. The only ones are in sort of the 100% growth and above are AI smart contracts, meme coins, Deepin, RWAs, etc. So I think the big thing as well is so many people and probably a lot of you have 30, 40, 50 different altcoins and some people I speak to that come and sign up as Collective Shift. I'll do a strategy session. They might have a $300,000 portfolio, but they have like 20 coins, like $200 in them. The reality is it's going to make no difference to your portfolio. Even if that 10x's, which is super unlikely. And even if it does 10x, you're probably not going to sell the coin. So what I recommend doing is sitting down, consolidating all those coins, getting more focus into like high conviction assets with deeper liquidity in each, rather than having a bunch of altcoins with very minimal capital. I did this back in 2017, 2018, just had a bunch of crappy altcoins, really didn't do too much with my portfolio, and I really didn't have a solid sell strategy. But what I did in the 2018 bear market was really consolidate and went hard on sort of five to seven assets in a metaverse, had a lot more capital in each. And then once we hit that narrative and the metaverse went nuts, we actually made a lot more money that I could sell out and make a substantial difference. So just be aware of that in terms of your portfolio allocation, it's super, super important. So if you're at that point where you're going, okay, cool, I'm underperforming. Great, Ben, you've told me all this stuff. I'm in a bunch of sectors that maybe aren't performing well. The first thing is just to reassess your portfolio through those coins. Does it have exciting narratives? Is that sector, do you think going to get retail attention and then all about the fundamentals, like timing? Do they solve a growing need or a problem? Are they building or releasing new updates or products that the market wants? Do they have a community of developers or an audience that is really passionate about the project? Are they getting legitimate adoption? And when I talk legitimate, it's not just like bots trading on the chain to make it look like there's something going on, like Legitimately, people using the chain, do they have little competitors or is this space that they're in getting oversaturated with a bunch of other competitors? Like the layer one space, Right. It's getting super, super saturated. Are the tokenomics sound or broken or is there upcoming huge VC unlocks that are coming into the market? You need to be aware of these are very and very important points. And the narrative and the catalyst, those are really big as well. Like, fundamentals sometimes can go completely out the window in crypto and it can just be purely on speculation and narrative. So you need to make sure that your asset has that sort of backing and support as well. Are you emotionally attached to these coins as well? That's another big thing. Like, are you just hoping this thing comes back because a mate told you back in 2017 that was going to be big? Or like XRP, they've been waiting for, you know, the market to pump for years now, when in reality, over the last four years, I think XRP is just the same level, if not down over four years. Right. But that Hopium keeps you attached to these coins. Hope is not a strategy. You need to be dialed in. You need to know what's going with these coins and are they actually going to get market adoption as well as. Do you know that if your coin is down 60 or 70%, do you actually know how much it needs to go back up to get to 100%? If your coin goes down 70%, it doesn't need to go 70% to go back higher. It needs to go, sorry, back to where it was. Needs to go a lot higher than 70%. In fact, if you're down 70% on a coin, the crypto needs to go up 233% to get back to break even. So just remember that. Are you thinking about tax? Right. Tax is another thing. I bought it, you know, I bought $10,000 of this and now it's down. Tax might be sitting in your, you know, your mindset is a reason why not to sell. Tax should be a consideration, but it should never be, in my opinion, a reason not to sell or buy a coin. Because you think, you're thinking that sort of sunk cost fallacy. It's like, I've been in this for three years now, I can't quit now. That is opportunity cost, folks. You're going to look back and you go, shit, if I rotated out of that and actually bought some of these newer chains, these newer projects actually would have made a lot more. But instead I held on to this Thing that probably isn't going to get back to where I think it could because I didn't want to lose that time and effort that I put into the coin. The other thing as well is diversification. Like, the reality is the market will move together like bitcoin leads and everything else goes. But I think in my opinion, diversification is key because there's going to be certain sectors inside crypto that are going to outperform others. I think having some exposure to those different sectors is important, like having some AI exposure, having some gaming, having some defi is good, rather than just going all in on one sector. Because if that sector doesn't play out or that coin doesn't play out, then again you're going to be underexposed and you're going to be worried about, you know, the market sort of outperforming you. Another really big common mistake is following those old narratives, as I mentioned. So I think like, you know, relying on the success of previous cycles, like, you know, back in 2017, I've sat down with so many different platinum clients and looked at their portfolio and I know exactly when they got into crypto because I can see all the coins that they bought back in 2017 that they're still holding on to and those old narratives as old projects. Yes, they might have, like a bit of a cultish community, but I don't believe they're going to get a lot of the attention, you know, in future cycles. So something to really, you know, take into account as well as like underperformance. I think too, like, actually being able to add new capital into the market is super important. Like if you have fresh power on the sidelines where you can, you know, start to deploy, you know, and have some sort of buy strategy to accumulate good assets is important. I get it. If you're fully exposed, that's absolutely okay. But just make sure your portfolio is like really well you know, rounded and you have sort of the different sectors and allocation dialed in. But if you have some new cash to add to the portfolio, I think that's a really good plan. Like, at the moment, I'm really buying a lot of bitcoin. I do have a lot of altcoins, but I'm waiting for that eth BTC chart to flip. I'm waiting for a little bit more sentiment and retail to come back in the market before I start to really go hard on altcoins. You can go hard on altcoins now if you want, but just, just be prepared for, you know, some drawdowns you do have to stomach those, you know, drawdowns with altcoins. But having some dry powder, especially over the last 12 months where we've had things like the Japan carry trade or different dips in the market, it just gives you that opportunity where you can actually take advantage of lower price assets without just having to rely on what you put in in previous times. So I think it's never too late to reassess your portfolio and never just think it is what it is and throw it away and forget about it. That time in crypto, I think is gone now. Like the times where you can just sort of throw, throw the portfolio away, buy anything you want, everything goes up, in my opinion is sort of well and gone. So I think diversify, find those narratives. And also with your portfolio allocation, I think if there's anything less than like 0.5% in a certain coin, I think I'd just make that sort of the minimum. Just because even on the upside, like when the whole portfolio rises and you've got such a small amount, even if that goes higher, to think about having enough in that asset to then be enough to sell or even be driven enough for you to actually take profits, I think is important. So another thing, if you've got a bunch of coins for just little bits in them, I would recommend just thinking about consolidating them into some of the assets. You have more conviction in that way. When they actually do grow, you've got a larger size that's making a genuine impact on your portfolio. You can take profits and move away from there. So that's really the key reasons. Again, that's just within your own portfolio. We've also got to remember that we are amongst, you know, a crypto cycle and a macro cycle. So yes, your portfolio may be underperforming in terms of, you know, similar other portfolios or comparative portfolios. But if it's just underperforming because the part of the cycle we're in, well, don't stress. I see a lot of people get concerned because they started buying in in March, right, when the market was high. Now it's down, they go, why am I down? Well, it's because the cycle is the cycle, right? You can buy, you could have bought anything back in March and you'd be down now. So you've got to understand your portfolio should be performing well against comparative portfolios. But if the cycle itself is down, you also need to recognize that and not get too impatient. Like once we really hit into this bull market, your portfolio will perform relatively well regardless of what you're having. But we're just trying to get from like level one to like level three. Like, how can we increase the opportunity that you make greater returns by having a better portfolio in a bull market rather than having a crappier, older portfolio? Because you didn't want to deal with it and you didn't want to make any changes in the bear market and now you didn't make as much money in a bull market, if that makes sense. So just recognize where we are in the cycle as well. Not getting impatient, not getting frustrated, because that's where you're going to start to make poor decisions. So if you need help with your portfolio or your strategy, we do offer 30 minute portfolio strategy sessions with our team. We've got 10 independent researchers and analysts here full time at Collective Shift and we love helping you all out. So you can jump on a call, we can walk through where you're at, where your goals, and we try and help you create a plan and make sure you absolutely crush this bull market. So you can hit the link below. Otherwise, I'll see you on the next video. Thanks, guys.