If you own any of these cryptocurrencies, please start paying attention

After evaluating my cryptocurrency portfolio, I decided to dump some of the inferior assets and reallocate to some stronger ones. Here are some cryptocurrencies you might want to consider selling.

I recently went to the doctor and learned that I am pre-diabetic. This is terrible. I can no longer eat candy, soda, fast food, chips, cake, frappuccinos, popcorn, donuts, and other bad eating habits I have developed during lockdown.

It’s sad to hear this, but I’d rather make changes now than develop diabetes. Sometimes the hard truth is necessary, even if it forces you to make uncomfortable changes.

I recently reviewed my portfolio and the cryptocurrency market and realized that there are a number of coins that should be removed from the portfolio. I held a significant portion of one of these coins. I bit the bullet and took the loss.

Losses are painful. Losses in a bull market are painful. It feels like you are the neighbor of someone who is throwing a big party and you were not invited.

Then, when you turn on the YouTube celebrity or Twitter troll, you’re reminded of how much money they make and how perfect their phone is, and you feel like a fraud.

However, as my doctor recently updated me on my health, it’s not too late to trim excess from my portfolio and make up for losses elsewhere. So I’m going to share some of the coins I’ll be trimming and moving into other, better performing crypto assets.

Criteria for making blacklists

Coming up with my blacklist was not easy. Many coins do not qualify, but let me explain how I choose which cryptocurrencies do not belong in a balanced crypto portfolio.

My first blacklist rule is to only include coins that existed before 2023. New coins can do crazy things in a bull run, and I can’t blame anyone for wanting to take a chance on a new coin that hasn’t proven itself yet.

Over the past year, the entire cryptocurrency space has grown in value by about 120%. Bitcoin is up 147%, ETH is up 68%, SOL is up 603%, and BNB is up 183%.

So, rule 2 is that if a cryptocurrency hasn’t risen in price by at least 31% over the past year, it doesn’t belong in the portfolio. If a coin hasn’t made 25% of the entire crypto asset class in the past year’s bull run, what makes you think it will suddenly outperform?

I chose to look back a year ago because the cryptocurrency market accelerated dramatically in October 2023.

Shit List

Here are my results and their respective 1-year returns when I reviewed the top 100 cryptocurrencies by market cap.

XRP-11.5% DOT-14.2% LTC-9.8% XMR-3.5% ETC-27.2% XLM-(10.9%) POL (formerly MATIC)-(30.2%) OKB-(6%) FIL-16.2% HBAR-14% ATOM-(33%) MKR-(8.9%) ALGO-30% BSV-28.2% LDO-(30.5%) QNT-(24.5%) FLOW-23.7%

Surprises after creating a "blacklist"

I am a bit surprised that 17 cryptocurrencies made this list. I am particularly concerned that 7 of the top 100 have performed poorly over the past year.

My biggest surprise and disappointment was that I still had one negative coin in my portfolio - LDO. I was right about my blacklist... I lost a lot of money in Lido.

So I took the pills and lost over 50% :(

Where I went

After selling the LDO tokens, I will transfer those funds to APT. I prefer SUI to APT, but I already own a lot of SUI and I think APT may get some sympathetic increases and help it catch up to SUI's market cap.

Some other ideas are categories that influencers are primed to market — memes, AI, and gaming. I’d rather own a blue chip cryptocurrency in a marketed category than a bucket of rusty crap that I misread.

I am increasingly convinced that cryptocurrencies are just an attention game, with fundamentals obscured by hype. Suppose LDO is a profitable DeFi project that has the highest return among DeFi projects by TVL, but has a negative return of 30% over the past year. In this case, few people pay attention or care about profitability.

Even worse, MKR (now SKY), which has the highest revenue per user, has experienced negative returns of 8.9% over the past year.

Key Takeaways

The good news is that a major altcoin bull run has most likely not happened yet, just like I haven’t been diagnosed with type 2 diabetes yet. Just like my dietary changes, there’s still time to adjust if you hold blacklisted coins.

If you hold these assets and want to make a better choice without doing research, it might be wiser to split your funds into one-third of BTC, ETH, SOL, or BNB.

Or, if you like and believe in these blacklisted projects, maybe they can buck the trend. As mentioned before, LDO and MKR are fundamentally very successful. You could also argue for holding XRP, FIL, or POL. However, the other names are likely to be used by leveraged traders or fall out of the top 100.

If you agree that it doesn't make sense to have these projects, please clap. If you are a naysayer, I'd love to hear why in the comments. If you have any projects on your blacklist, please share them in the replies and state your reasoning.

I own SUI, APT, BTC, SOL and BNB.

This information should not be considered investment advice. I am no more qualified to provide financial advice than I am to translate ancient Sumerian texts into modern fables. Digital assets such as cryptocurrencies and NFTs involve risks, so due diligence should always be performed before investing.