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The 2022 Top Ten Cryptocurrency Index Fund Experiment – All Systems Go!
For the fifth New Year’s Day in a row, I am happy to announce another $1,000 purchase ($100 each) of the Top Ten Cryptocurrencies for 2022. The Top Ten Experiments have now invested a total of $5,000 in crypto since January 1st, 2018.
The lucky cryptos this year? Here they are in descending market cap order as per coinmarketcap.com:
That’s a $1000 investment on the 1st of January, 2022, $100 each of #1 BTC, #2 ETH, #3 BNB, #5 SOL, #6 ADA, #7 USDC, #8 XRP, #9 LUNA, #10 DOT, and #11 AVAX.
Long time Top Ten Experiment followers will notice that this year I’m breaking the tradition of strictly investing in the Top Ten by market cap, no matter what. Two stablecoins in the portfolio was bit much, so #11 AVAX has been included in the portfolio and USDT is out.
The 2022 Top Ten Portfolio = Top Ten – USDT + #11 (AVAX).
USDC will remain in the 2022 Top Ten Portfolio. Why USDC instead of USDT? No reason really, just thought I’d give Tether a break, as I’d already purchased USDT in past Experiments.
If you want to know why a stablecoin was included in the Top Ten Experiments in the first place, check out the FAQs.
If you want to know why am I keeping a stablecoin (USDC) in the 2022 Top Ten Portfolio, read on…
Where Did I Purchase The 2022 Top Ten?
I get this question a lot. Where does someone actually buy all these different cryptos? This year, I used a bunch of different exchanges to make the purchases. Details, including price I paid and amount of each crypto obtained below.
I used Binance to purchase SOL and ADA at the prices below:
I used Kraken to purchase DOT at the price below
I used Uphold to purchase XRP at the price below:
I used BlockFi to purchase USDC:
For the rest of the 2022 Top Ten, I used different Decentralized Finance (DeFi) exchanges:
For BTC, ETH, and AVAX, I used Yield Yak on the Avalanche blockchain:
For BNB, I used Pancakeswap on the Binance Smart Chain blockchain:
And finally, for LUNA, I used Terraswap on the Terra blockchain:
New Top Ten Crypto Index Fund Experiment Features for 2022:
I’m introducing some changes to the Top Ten Experiment for 2022. While attempting to stick to the original intent to keep the Experiments simple and beginner friendly, I will incorporate some slightly more advanced concepts.
- DeFi: As long time Experiment followers may have noticed, the January 1st, 2022 Top Ten purchases used Decentralized Finance for the first time.
- Factoring in USDC gains: These days, there are many ways to earn on stablecoins. In past years, I have not included the ROI that is possible with stables in the monthly reports. This year, I will detail ways to build on the $100 of USDC in the 2022 portfolio and gamify it a bit: my goal is to outperform as many as the other cryptos in the 2022 Top Ten Portfolio as possible (simple if it turns out to be a bear year, a bit more challenging if the 2022 market moons).
- Reporting: I will continue to track the data for all Experiments, but I will only produce two posts per month. I will update on the 2022 Top Ten Portfolio monthly plus one other Top Ten Portfolio from 2018, 2019, 2020, or 2021 on a rotating basis.
- Giveaways: Who doesn’t love a good old fashioned giveaway? I’ll be giving away crypto during the year, either through Twitter, Reddit, or my email list. I’m still figuring out the details, but aim to give away around $100 a month in crypto.
- Comparing my homemade 2022 Top Ten Crypto Index Fund Experiment to a Total Crypto Market Cap Index Token: The first Top Ten Crypto Experiment was started on 1 January 2018 in an attempt to capture the gains of the entire market. Crypto moves quickly and much has changed in the last four years. Instead of manually buying coins and tokens, new DeFi projects have emerged that have created index tokens to capture segments of the crypto market (DeFi, the Metaverse, Blue Chips, etc). Check out the below screenshot from Zerion for an idea of what’s possible in 2022:
The fourth index on Zerion’s list is TCAP, a Total Crypto Market Cap token which tracks the entire crypto market – exactly what my Top Ten Experiments have been trying to recreate from the start. It is especially interesting considering that the Total Market is outperforming my 2018, 2019, and 2020 Top Ten Experiment Portfolios, one of the major take aways from this experience. More specifically, here is the data, as of 1 January 2022:
- Buying the Top Ten at equal weight in Jan 2018: I am up +34% vs. +285% for the total crypto market cap.
- Starting in Jan 2019? +504% for the Top Ten vs. +1,638% for the total market cap.
- Starting in Jan 2020? +795% for the Top Ten vs. +1,066% for the total Market Cap.
- Starting in Jan 2021? The 2021 Top Ten Cryptos are still providing a better ROI than the total market cap, but this is an outlier and the gap is starting to close (+292% to +185%). If history is any indication, I expect to see the Top Ten gains fall behind the Total Market Cap over time, like the other Experiments.
Since we are both focused on crypto indexes, Cryptex (the team behind TCAP) kindly provided 3.4 TCAP (worth $1,000) to the Experiment on the 1st of January, 2022, for a bit of friendly comparison:
Here’s the question I’ll be tracking: as the months/years go by, would I have been better off just buying $1,000 of TCAP instead of going through the effort of creating a homemade $1,000 Top Ten Index Fund? I’m satisfied the ROI on my $1k/year, set it and forget it approach, but is it possible to do even better with even less effort?
That’s it: that’s the 2022 Announcement post. I’m really looking forward to incorporating the new features for the Experiment in 2022. If you’re new to the Experiments, welcome! If you’ve been following over the years, many thanks for sticking around so long.
The first monthly report for the 2022 Top Ten group will drop in early February. The year end 2018, 2019, 2020, and 2021 reports will be released in the coming weeks.
In the meantime, you’re welcome to pour through all the monthly data here.
Happy New Year and wishing everyone the very best for 2022!
Help keep the lights on at the Top Ten Crypto Index Fund Experiments.
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Saw your posts on Reddit and wanted to thank you for sharing the results of all the hard work you’ve put in. I was looking at ways to replicate what you do without the hassle of buying each individual coin. Today I came across 21sharesDOTcom (not sure if allowed to link), a Swiss company that is now offering crypto ETPs (single-cryptos and baskets). One of their ETPs, called “Keys”, is a market-cap weighted basket of the top 10 cryptos, inflation-adjusted, and may be of interest to you for comparison purposes. Big downside are the hefty 2.5% management fees.
Thanks for stopping by and thanks for the comment! Interesting, I’ve not heard of 21shares before. Invictus is another product that I believe has Top Ten and Top Twenty funds. Shrimpy.io does this as well I believe.
This may appeal to some, but personally, I’m not interested in adding a middle man for a couple of reasons: 1. The fees, as you mention 2. I’m comfortable holding my own crypto assets and can gain interest and staking rewards in addition to the basic ROI 3. One of the main takeaways from four years of data: portfolios (including my Top Ten Portfolios!) tend to get absolutely CRUSHED by the returns of the overall market. And it makes sense, because how can any portfolio, in the long term, compete with the overall market which is constantly being added to by new cryptos. There are synthetic assets these days that make that possible, like TCAP, the one I’m going to compare the 2022 Top Ten to this year. Check it out at https://cryptex.finance/.
Or, if you’re interested in another type of index, there’s a good list of DeFi indexes here: https://app.zerion.io/invest/defi-indexes
Congratulations on your page and all the analysis. I ve read you on reddit and then read youre page. Also i am following now you on twitter but its seems that i cant send you dm on twitter, dont know why.
Really nice that you’ve added the giveaways
Greetings from Chile!!
Saludos de Asia y gracias! I’ll send you a DM from my side and Twitter to see if that works.
I was wondering how you are keeping track of the coins that you bought, do you have many different wallets or is there a wallet that allows you to keep all the different coins on it? Thanks in advance!
I’m keeping track of the crypto through the spreadsheet you see in the post, plus the FTX (formerly BlockFolio app) on my phone. Feel free to email me if you’d like a Excel copy of my spreadsheet.
For storage, I mainly prefer to keep my assets off centralized exchanges, but might keep some crypto there if it’s possible to gain interest through staking (my DOT, for example, is on Kraken gaining interest). If it’s an ERC-20 token, I’ll usually move it to Metamask. For the BNB, in order to stake for interest, I use Trust Wallet.
I hope that’s helpful!
I am also following along with the experiment, without any stablecoins, may I ask the reasoning to have divided the buying of coins over so many different exchanges (I am just using coinbase.)
Hey Ben! Nothing against Coinbase, sometimes they don’t offer all of the Top Ten (XRP, for example, isn’t available on CB) and I just had money elsewhere at the time of purchase.
i have also invested in the top 10 coins this year (excluding stable coins) lets se what this year will bring us 🙂
Great! Wishing you (and all of us!) a good 2022 in crypto!
what about NFT? everyone is talking about it. should we invest in it?
Hi Sawsan – there is definitely a lot of buzz on NFTs these days, but no NFT-focused project made it into the Top Ten this year, so they we not included in my Top Ten Experiment.
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This is my breakdown (i am starting the similar experiment as you from 2022 and onward). To keep this simple i preferred to buy the Cryptos in Coinbase for ease. Just sharing my data. Bought the crypto on 1/2/2022. I hope to see how different our data set are going to be. Difference between me and the author are
I have USDC and USDT. Ripple luna, bnb and BUSD were unbuyable in Coinbase.
1 BTC Bitcoin 47076.46 2.99 0.002061
2 ETH Ethereum 3811.4 2.99 0.025453
3 BNB Binance coin 0 0 0
4 USDT Tether 1.01 2.99 96.517711
5 SOL Solana 173.13 2.99 0.560326
6 ADA cardona 1.36 2.99 71.50175
7 USDC USD coin 1 0 100
8 XRP XRP 0 0 0
9 LUNA Terra 0 0 0
10 DOT Polkadot 29.05 2.99 3.338892
11 AVAX avalance 112.65 2.99 0.8611986
12 DOGE dogecoin 0 0 0
13 SHIB shiba inu 0 0 0
14 POLY polygon 2.5 2.99 38.84713586
15 BUSD Binance USD 0 0 0
16 LITE litecoin 150.62 2.99 0.644089
total 26.91 973.9100165
Great! Stay in touch, it will be interesting to compare along the way.
Wishing you and your portfolio success this year! What are you planning on doing with the two Stablecoins in your list?