• Skip to main content

Metacoin

Covering Bitcoin, the Blockchain, Altcoins, and Fintech

  • Start Here
  • Links
  • Disclosures
  • Sketches 2021
  • Collezione

Apr 07 2017

Quadruple Your Money with the BRED Portfolio

When we stumbled upon this idea this morning, our first instinct was to play it rather cool with the headline. Something like “Introducing the BRED Portfolio: A Buy-and-Hold Bitcoin and Altcoin Investment Strategy.” And that sounds very straightforward, by the book. It’s also boring.

So we went with the clickbait headline.

Read on:

Why “BRED”?

There are a couple reasons behind this one – and it’s not just because these four letters fit together nicely. (They do, though. Props to us.)

Think about one of the best business and investment acronyms out there: FANG. Jim Cramer claims to have created the acronym several years ago, used to put four “new economy” stocks into one nice bucket. Facebook. Amazon. Netflix. Google.

It’s easy to remember, but it also includes four really solid tech stocks – and four companies that are, you could argue, doing quite a bit differently while still being in the same category.

We thought the same thing when creating this portfolio strategy: let’s get four of the biggest cryptocurrencies out there and put them in one bucket.

BUT, let’s do this with an eye toward the ones that have the best chance of long-term staying power.

While “BRED” works nicely as an acronym, these are also four coins that have managed to stick around in the crypto space.

We’re not just rationalizing…

B is for Bitcoin, and you couldn’t have a portfolio like this without Bitcoin, since it started this whole shebang, right?

R is for Ripple – which, for some reason, doesn’t have a ticker symbol that starts with “R” – and Ripple’s USDT price developments of late don’t tell the whole story; consider it the best chance of becoming the backbone of all crypto transactions throughout the world.

E is for Ethereum, whose “smart contracts” were, you could argue, the first yin to Bitcoin’s yang.

D is for Dash – “digital cash” is a very easy and consumer-friendly value proposition. We will argue that this one could win out based on the strength of its community alone.

 

Look at the rankings, though – if you visit Smith and Crown this morning, you’ll see that these are four of the five largest cryptocurrencies – in terms of market capitalization – in the world. In fact, going back to January 1, you would still have been picking four of the 7 largest cryptos, as shown in this chart from CoinMarketCap.com.

Argue with us if you’d like, but we’re going with this acronym. You’ll see why in a second.

Structuring the BRED Portfolio

To keep it simple, we used January 1, 2017 as our starting point. And, as opposed to weighting the portfolio by market cap – which would have had Bitcoin at about 92% of the portfolio, defeating the purpose – we went with a straight 25% invested in each.

Bred Jan 1

To get the prices, we grabbed a chart from TradingView.com – our first-ever visit to the site, which is bloody easy to use, we might add – and use their figures for open price on January 1.

TradingView BRED Chart
Thanks, https://tradingview.com

So there we are, a simple portfolio with four of the biggest crypto assets. But…how did it perform?

Quadruple. Your. Money.

What will remain to be seen here is whether or not this is an aberration – past performance not indicative of future results and all that.

But holy buckets this thing is on fire.

Straight Up Fire

$10,000 invested equally on January 1 in four cryptocurrencies – Bitcoin, Ripple, Ethereum, and Dash – would have grown to $42,567.69 on April 1.

So…Now What, Smart Guy?

Yes, hindsight is 20/20. Looking back, the woulda-shoulda-coulda factor with the coins that aren’t named Bitcoin is pretty huge. And the volatility is such that today’s number on the BRED portfolio is more like $44,000 – and that’s due in part to the Ripple developments over the weekend.

But here’s our take – and we’re not investment professionals, nor do we provide legal advice – on what to do with this information:

Buy and hold. It doesn’t have to be these four cryptocurrencies, but you should consider having a few coins or tokens that you simply leave alone. Don’t trade them, keep them in cold storage, and worry about them only a little.

Share this:

  • Email
  • Facebook
  • LinkedIn
  • Reddit
  • Twitter
  • WhatsApp

Written by David Van de Walle · Categorized: Bitcoin, BRED, Dash, Ethereum, Quadruple, Ripple · Tagged: Bitcoin, BRED, Dash, Ethereum, Ripple

Reader Interactions

Trackbacks

  1. Four Coins that Could Quadruple by This Time Next Year | Metacoin says:
    23/04/2017 at 09:22

    […] if you take our “BRED Portfolio” post as an example of our ability to be soothsayers, we might be on to something here. (If […]

    Reply
  2. BRED or ICO - Which Path? | Metacoin says:
    26/04/2017 at 12:16

    […] Back to the tooting of our horn: we believe we’re onto something with the BRED portfolio. […]

    Reply
  3. Confirmed: #BRED Portfolio on #FIRE | Metacoin says:
    01/05/2017 at 18:36

    […] Last month on this site, we thought we’d do a little “backtesting,” with our theory that four of the most prevalent cryptos might just be four coins that could line your pocketbook rather nicely. So we did just that, and you can see the original post here: Quadruple your money with the BRED Portfolio. […]

    Reply
  4. A Five-Month Buy-and-Hold Strategy to 10x Your Money | Metacoin says:
    07/05/2017 at 13:27

    […] that. The BRED Portfolio. The one we seem to be prattle on and on about. The one that involves a $10,000 investment, spread […]

    Reply
  5. The Ripple Effect | Metacoin says:
    17/05/2017 at 20:44

    […] yeah, we talk about the #BRED Portfolio quite a bit here. In fact, we were gonna write about this very subject on Sunday morning, before we […]

    Reply
  6. BRED Update (Or, How's Your Bitcoin?) | Metacoin says:
    25/05/2017 at 07:02

    […] BRED Portfolio, which we started tracking on April 1 (it’s ONLY been two months? Really?), takes four of the […]

    Reply
  7. Turn 10K into 193K in Just Five Months | Metacoin says:
    01/06/2017 at 08:47

    […] Welcome to the crazy world of cryptocurrency, and the even crazier concept we created called the BRED Portfolio. […]

    Reply
  8. Six Months In: The BRED Portfolio Continues Its Tear | Metacoin says:
    02/07/2017 at 13:24

    […] one of our BRED Portfolio was to take four coins and invest $2,500 into each. The coins were selected, we’ll admit, […]

    Reply
  9. The BRED Portfolio Update: Still Doing Okay | Metacoin says:
    03/08/2017 at 07:32

    […] April, we’ve told you quite a few times about the BRED Portfolio: our own specially selected basket of currencies. Artisan, GMO-free, and tasty! Actually, […]

    Reply
  10. Coins on Fire: The September 1 BRED Porfolio Update | Metacoin says:
    01/09/2017 at 10:47

    […] you’re one of the four coins in our BRED Portfolio, your August was rather good. When we launched this portfolio in April, we backtracked our […]

    Reply
  11. It's October, and Time to Check In on BRED | Metacoin says:
    09/10/2017 at 12:41

    […] Followers of this site know that we talk about a diverse set of Bitcoin and cryptocurrency-related topics, and we’ve actually been doing so for seven solid months. (That seems like forever in crypto – in some respects, this hyper-warp-superspeed in the industry is actually unlike anything else we’ve ever seen.) And, while it may appear that we’ve zeroed in on Passive Income of late – we have, to an extent – we don’t want to forget about one of the “innovations” we created in April: the BRED Portfolio. […]

    Reply
  12. 50 Weeks Later: The Jaw-Dropping Returns of the BRED Portfolio | Metacoin says:
    14/12/2017 at 06:13

    […] original post on BRED was a couple months into the year, but we decided to back-test and figure out what would have […]

    Reply
  13. The 2017 BRED Portfolio...Would Have Made You Rich | Metacoin says:
    01/01/2018 at 14:24

    […] we created the BRED Portfolio, we decided to take four coins that were already in use, but we did backdate the portfolio to […]

    Reply
  14. BRED Portfolio 2018 - Is It A Good Idea? | Metacoin says:
    30/05/2018 at 10:28

    […] today’s update on the BRED Portfolio – a combination of Bitcoin, Ripple, Ethereum, and Dash and all their forks. When we first […]

    Reply
  15. Time to Revisit the BRED Portfolio for 2019 | Metacoin says:
    22/04/2019 at 18:37

    […] first writeup about the subject was here: Meet the BRED Portfolio. And what an initial ride it was: As we learned right after the calendar turned to 2018, had you […]

    Reply
  16. #CryptoComeback: Is It Time To Get Back In The Bitcoin Game? | Metacoin says:
    11/05/2019 at 11:55

    […] you’re familiar with our BRED portfolio, first introduced in the Bull Run of 2017, you know that this was ONE WAY to possibly hedge your […]

    Reply
  17. BRED vs. Balance - Which Portfolio Wins 2020 So Far? | Metacoin says:
    18/02/2020 at 13:08

    […] curious about that portfolio, how it’s doing, and whether or not it stacks up against BRED, the stalwart we started tracking in […]

    Reply
  18. Checking in on the BRED Portfolio | Metacoin says:
    26/04/2020 at 10:57

    […] you want an answer to the volatility in the financial markets, is it possible that the BRED Portfolio — our 2017 combination of Bitcoin, (Ripple’s) XRP, Ethereum, and Dash — could be […]

    Reply
  19. The Blind Squirrel Crypto Portfolio | Metacoin says:
    07/05/2020 at 09:43

    […] that can potentially help diversify your portfolio. This is why we created something called the BRED portfolio in 2017, and why this year we came up with another idea: the Crypto Balance […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Copyright © 2023 · Altitude Pro on Genesis Framework · WordPress · Log in