Hey Steemians!
I've been sort of busy lately planning on how to move forward my different projects, which ones to focus on mostly and which ones would be for the greater good of the platform over time. But since I have had a lot of time on me lately, things have been moving forward and I wanted to share some details about my Crypto-Portfolio with you.
The idea and some its challenges
I wanted to create a fully open-source porfolio of my crypto-investments and short-term/long-term trades. With open-source this means that I am open to the readers and community about my trades, my investments and the execution of them with proof of holding. There are a few cons to starting a project like this that could become big over time with active followers and those who also follow my trades and investments. The biggest issue is that if I would announce in my next post for example: "Hey everyone, today I'm investing X amount of my investment into project/curreny X" if let's say we have 1000 followers here, and 100 of them who are following my investments and trades as well, it creates a gap that could be abused by me, or others following me who are early on checking out the post. Let's say that the currency has a very low weekly volume, I announce that today I purchased X amount of this currency, someone who reads it early might think "if he only bought in 0.1 btc and the total volume is currently 1 btc/24h, I could start buying it now, drive the price up and once the other followers read it and see the current price they will shoot it up even higher and I'll be there at the top waiting to dump it all at once - thus having the investors who followed my initial trade losing out instantly to the one fake pumper and dumper.
Scattered trading
In a free market there are many things out of your control, I've been trying to tweak the project in a way that diminishes the opportunity for pump and dumpers to be able to do just what I explained above. The best method I could think of was: purchasing the coins in my portfolio little at a time, spread out over a few days/weeks.
For instance, I hold Steem, BTS, Zcash, Eth and BTC in my portfolio. Instead of purchasing 100% of the amount I want to place in it, I purchase 10% of Steem today, 10% of BTS, 10% Zcash, etc and leave some for tomorrow/other days. This works out even better considering the volatility and aiming for buying the currencies in my porfolio during dumps over a period of time instead of all at once (maybe causing a small pump but giving opportunity to bigger hands causing bigger pumps and even bigger dumps afterwards). I hope that my "Scattered Trading" here will remove the potential abuse of the project.
To make sure I myself am not the one causing these pump and dumps on my own followers - I will provide proof of holding. This means usually a screenshot or proof through another reputable member/members to make sure I haven't sold the currency after initially having bought it prior to making the post. For now in the beginning I am guessing screenshots are okay for most of you, but if the Crypto-investments start becoming bigger I am willing to do anything necessary to prove to my followers that I still hold the funds of my portfolio. If the investments of well-known and trusted cryptocurrencies start becoming bigger than we'd feel comfortable holding on an exchange, it will be moved over to a cold wallet and proof of holding will be a lot easier through signed signatures.
How to involve the community in the Project
User-activity - to make it more interesting for the readers and followers I have a few ideas in mind where a certain % of these posts posting rewards go to a different pool which is also diversified in the portfolio, but once every month the profits that part of the investment makes go back to the commentators that have been active in these posts.
Community investing - I have been thinking of other ways the community can become active in crypto investments in general. I know many users here nowadays aren't all cryptocurrency-enthusiasts and they might not even know where to look for altcoins or where they can invest them or how to make sure they are held safely outside of exchanges. Users can anonymously (more details about that later) or through Steem purchase a share in the porfolio (while knowing the risks) in case they like the progress so far and want to jump in.
This is where decentralization and low-fee transactions make this an interesting community-investment. On other platforms you usually have to pay or subscribe to be given information about trades/investments and probably pay even more for those who invest for you, to hold your investments. With this project I would want to change it up a notch and show people the power of the block-chain and how we all can profit from the ever so increasing market cap. Middle-men who take service-fees for your investments and transactions are so yesterday, I want to change it to fee per profit only. What this means is that if you have invested $10 into my portfolio and after 6 months your $10 is worth $50, I will take a % fee of the profit only once you want to withdraw it from the portfolio. More details and a post about this point coming soon.User suggestions on crypto-currencies they want me to research and post about and maybe include in the porfolio.
That was it, I hope you liked what you read so far and I will be posting some more details about all the different parts soon!
Hope you'll consider jumping with me into the world of crypto's and how even you can profit from it without being the best day-trader or having the best eye for investments. Or just lacking the time to look into them yourself but would still want to be a part of an investing portfolio that focuses on these currencies.
Follow @cryptochannel so you don't miss out!
Images taken from freepik.com