If you own any of these cryptocurrencies, start paying attention

After evaluating my cryptocurrency portfolio, I decided to get rid of some of the inferior assets and rebalance to some stronger ones. Here are some cryptocurrencies you may want to consider selling.

I recently visited my 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 developed during lockdown.

It's sad to hear this, but I would rather make changes now to avoid diabetes. Sometimes the hard truth is necessary, even if it forces you to make uncomfortable changes.

Recently, I looked at my portfolio and the cryptocurrency market and realized that there are many coins that should be removed from the portfolio. I hold a considerable 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’re a neighbor of someone who’s throwing a big party and you didn’t get invited.

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

However, like my doctor’s recent update on my health, it’s not too late to trim the excess in your portfolio and make up for the losses elsewhere. So, I’m going to share some of the coins I’ll be cutting and moving into other, better performing crypto assets.

Criteria for Making a Blacklist

Coming up with my blacklist wasn’t easy. Many coins don’t meet the requirements, but let me explain how I choose which cryptocurrencies don’t 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 someone 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 a portfolio. If a coin hasn't done 25% of the entire crypto asset class over the past year's bull run, what makes you think it's suddenly going to outperform?

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

Shit List

When I reviewed the top 100 cryptocurrencies by market cap, here are my results and their respective 1 year returns.

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%

Surprise after creating the "blacklist"

I am a little 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 a negative token in my portfolio - LDO. I was right to 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 moved those funds to APT. I prefer SUI to APT, but I already own a lot of SUI and I think APT might get some sympathy boost and help it catch up to SUI's market cap.

Some other ideas are categories that influencers are ready to promote - memes, AI, and games. I would rather own a blue chip crypto in a promoted category than a bucket of rusty garbage that I misjudged.

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

To make matters worse, MKR (now SKY) has the highest revenue per user, but has experienced a negative return of 8.9% over the past year.

Key Takeaways

The good news is that the 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 is 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 smarter to split your funds into a 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 earlier, LDO and MKR are fundamentally very successful. You could also argue holding XRP, FIL, or POL. The other names, however, will most likely be used by leveraged traders, or will fall out of the top 100.

If you agree that it makes no sense to own these projects, please clap. If you are a naysayer, I'd like to hear why in the comments. If there are 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 allegories. Digital assets such as cryptocurrencies and NFTs involve risks, so due diligence should always be performed before investing.