【Woody's Column】Self-Assembled Cryptocurrency ETF - December 2020 Report

Reprint of the self-organized currency circle ETF article by Woody, a well-known figure in the Taiwanese currency circle community. After just a few days, Woody reviewed the performance of December and "reallocated the portfolio." The original article is as follows:

Performance This Month

After the completion of the ETF construction, it came at a timely moment, ushering in a wave of big gains and mainstream climax. Expecting this combination to diversify risks and capture the overall bull market gains, hoping to meet two conditions: first, outperform the rise of BTC, and second, achieve an annual return rate of 100%.

The principal of $100,000 is currently $113,900, with a return rate of 13.9%, barely outperforming the rise of the big gains. Let's review the performance of some currencies.

The best performer is DOT, with a return rate of 42%. The upcoming slot auction next year can be said to be the highlight, combined with the three major institutions openly supporting the Polkadot ecosystem. The development of the Polkadot ecosystem is similar to that of EOS in its early days, with many developers joining. Projects recently launched on Polkadot are also highly sought after, with rapid financing and high expectations for Polkadot's performance next year, as well as the anticipation of listing on Coinbase.

Holding Polkadot not only earned from the coin price but also from mining rewards. The mining combination of Polkadot and BNB resulted in a cash flow of $3,300 from the recent REEF, which is quite an exaggerated figure, representing a 3.3% concept of the $100,000 principal in one month.

The second best performer is OKB, with a return rate of 25%. The related buying logic was previously analyzed in the community, and those interested can take a look. Currently, OKB is about to launch its mainnet and start staking for OKT rewards, leading to a surge in value. I will participate in staking. The outlook for the OKT ecosystem is currently not favorable, and I will look for opportunities to sell upon listing.

The worst performers are SNX and YFI, with return rates of -13% and -9% respectively. DeFi currently seems to be less favored by the market, showing relatively weak performance as funds have not yet flowed into this area for speculation.

Adjustments to Self-Organized Cryptocurrency ETF Allocation

Removed - CHZ Allocation

Although it once achieved a peak return rate of 46%, the sell-off pressure after the end of mining was too great. Additionally, the final profit from using CHZ to mine OG was around $200, resulting in no gain or loss. The retracement was too significant, so I decided to cut the position.

Added - LUNA Allocation

LUNA has recently joined the trend of algorithmic stablecoins, hitting a new high and aligning with my right-side trading logic. Moreover, LUNA has a strong investment lineup, and I believe there is a chance it will be listed on Binance Futures or Coinbase. For those unfamiliar with algorithmic stablecoins, you can check out the following link, which may shed some light on the recent Ethereum congestion issues caused in part by BAS participation. I recommend taking a look.

Others - CAKE, NEAR, UNI

Here are some coins I believe are promising, not included in the portfolio, but I have personally invested in.

CAKE is Binance Chain's flagship project, and the other two exchanges are also moving onto public chains. I believe CAKE's performance will not be too poor. However, to achieve the best results, you must participate in CAKE/BNB LP pool mining.

NEAR is currently in the stage of private placement release and sell-off, but the price has stabilized, indicating potential positive factors, so I entered the market. I believe NEAR, which is backed by strong investors, has a chance to be listed on Coinbase.

UNI recently reached a new high, suggesting there may be good trading opportunities and potential positive factors.

Portfolio Allocation for People with Less Capital

I recommend allocating platform coins BNB followed by FTT, and actively participating in popular ICO & IEO projects in the cryptocurrency circle. Investing in popular projects in the cryptocurrency circle almost guarantees profits, but you have to compete with experienced traders to accumulate capital for larger-scale asset allocation.

Finally, I wish you all a Happy New Year and a fruitful 2021.