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Month Thirty-Five – UP 303%
The 2020 Top Ten Crypto Index Fund consists of: BTC, ETH, XRP, USDT, BCH, Litecoin, EOS, BNB, BSV, and Tezos.
November highlights for the 2020 Top Ten Portfolio:
- Litecoin is the only crypto to finish November in the green and saves the 2020 Portfolio from a dreaded all-red month
- Tezos, BSV, BCH, and EOS are under the break-even point. BNB is in the overall lead, by far.
- The 2020 Portfolio is the best performing of the five Top Ten portfolios, up +303%.
This group of cryptos highlights the benefits of an index fund strategy: the +303% return of the 2020 Top Ten Portfolio has outperformed eight of the individual component cryptos contained within the Index. Only by guessing right and throwing all your eggs into Ethereum and/or Binance Coin would you have performed better than spreading out the risk, index style.
November Ranking and Dropout Report
Top Ten dropouts since January 2020: after thirty-five months, half of the cryptos that started in the Top Ten have dropped out: EOS, BSV, Tezos, Litecoin, and Bitcoin Cash have been replaced by Cardano, DOGE, MATIC, BUSD, and USDC.
At #52, BSV has sunk the lowest since January 2020.
November Winners and Losers
November Winners – While all of crypto was focused on the FTX debacle, Litecoin quietly put in a very strong month, +26% in November.
November Losers – Tezos (-25%) and EOS (-19%) underperformed their Top Ten peers this month.
Overall Update – BNB in first place, more than doubling ROI of second place ETH. Majority of cryptos are in positive territory, and 2020 Top Ten best performing Portfolio.
At +303%, the 2020 Top Ten Portfolio continues to be the best performing of the five Top Ten Crypto Index Fund Experiments. 60% of the 2020 cryptos are in positive territory, BSV, BCH, Tezos, and EOS the exceptions.
Binance Coin continues to hold a dominating lead, followed distantly by ETH.
The initial $100 investment thirty-five months ago into first place Binance Coin? Currently worth $2,086, an increase of +1,986%.
In second place is Ethereum, up +902%.
EOS is the worst performer in the 2020 group, down -63% since January 2020.
Total Market Cap for the Entire Cryptocurrency Sector:
As a sector, crypto is up +349% over the thirty-five month lifespan of the 2020 Top Ten Experiment.
If you were able to capture the entire crypto market since January 2020 (+349%), you’d be doing quite a bit better than the Experiment’s Top Ten approach (+303%) and ridiculously better than the S&P (+26%) over the same time period. Much more on the S&P below.
Crypto Market Cap Low Point in the 2020 Top Ten Crypto Index Experiment: $185B in July 2020 (aka Zombie Apocalypse).
Crypto Market Cap High Point in the 2020 Top Ten Crypto Index Experiment: $2.6T in October 2021.
BitDom ended November at 38.1%. This is the bottom end of the range when looking at the timeframe as a whole.
Here are the high and low points of BTC domination since the beginning of the 2020 Experiment:
Low Point in the 2020 Top Ten Crypto Index Experiment: 38.1% in November 2020.
High Point in the 2020 Top Ten Crypto Index Experiment: 70.4% in December 2020.
Overall return on $1,000 investment since January 1st, 2020:
The 2020 Top Ten Portfolio is now worth $4,031 (+303%) from the initial $1k investment.
The 2020 Portfolio remains the best performing of the five Experiments.
Below is a month by month ROI of the 2020 Top Ten Experiment, to give you a sense of perspective and provide an overview as we go along:
Combining the 2018, 2019, 2020, 2021, and 2022 Top Ten Crypto Portfolios
So what about combining five years of the Top Ten Crypto Index Fund Experiments?
- 2018 Top Ten Experiment: down -55% (total value $453)
- 2019 Top Ten Experiment: up +141% (total value $2,405)
- 2020 Top Ten Experiment: up +303% (total value $4,031) (best performing portfolio)
- 2021 Top Ten Experiment: up +65% (total value $1,652)
- 2022 Top Ten Experiment: down -76% (total value $240) (worst performing portfolio)
So overall? Taking the five portfolios together, here’s the bottom bottom bottom bottom bottom line:
After five annual $1k investments ($5,000 total) in the 2018, 2019, 2020, 2021, and 2022 Top Ten Cryptocurrencies, the combined portfolios are worth $8,781.
That’s up +76% on the combined portfolios, down from a +533% November 2021 all time high for the Top Ten Index Fund Experiments.
Lost in the numbers? Here’s a graph to help visualize the progress of the combined portfolios:
In summary: That’s a +76% gain by investing $1k on whichever cryptos happened to be in the Top Ten on January 1st (including stablecoins) for five straight years.
Comparison to S&P 500
I’m also tracking the S&P 500 as part of my experiment to have a comparison point with traditional markets.
Since the S&P 500 has returned +26% since January 1st, 2020, that same $1k I put into crypto in January 2020 would be worth $1,260 had it been redirected to the S&P 500 instead.
Crypto over the same time period? The 2020 Top Ten Crypto Portfolio is returning +303%, worth $4,031.
That’s a difference of $2,771 on a $1k investment.
But that’s just 2020. What about other entry points? What if I invested in the S&P 500 the same way I did during the first five years of the Top Ten Crypto Index Fund Experiments since January 1st, 2018, what I like to call the world’s slowest dollar cost averaging method? Here are the figures:
- $1000 investment in S&P 500 on January 1st, 2018 = $1,530 today
- $1000 investment in S&P 500 on January 1st, 2019 = $1,630 today
- $1000 investment in S&P 500 on January 1st, 2020 = $1,260 today
- $1000 investment in S&P 500 on January 1st, 2021 = $1,090 today
- $1000 investment in S&P 500 on January 1st, 2022 = $860 today
Taken together, here’s the bottom bottom bottom bottom bottom line for a similar approach with the S&P:
After five $1,000 investments ($5,000 total) into an S&P 500 index fund in January 2018, 2019, 2020, 2021, and 2022 my portfolio would be worth $6,370.
That is up +27% since January 2018 compared to a +76% gain of the combined Top Ten Crypto Experiment Portfolios.
To help provide perspective, here’s a look at the combined five year ROI for crypto vs. the S&P up to this point.
For those who have supported the Experiments over the years, thank you. For those just getting into crypto, I hope these monthly reports can somehow help with perspective as you embark on your crypto adventures. Buckle up, think long term, don’t invest what you can’t afford to lose, and most importantly, try to enjoy the ride.
Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for my parallel projects: the 2018 Top Ten (the OG Experiment), 2019 Top Ten, 2021 Top Ten, and 2022 Top Ten reports as well.
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