DCA Live Experiment: Month 4



What a month November was for the cryptocurrency market. This FTX saga revolving around SBF cannot be imagined in a dream or movie script... Throughout all of the FTX turmoil, bankruptcies, and scams, I continued to DCA $20 into each of the top 7 Reddit cryptocurrencies. These are the top cryptocurrencies on Reddit in November:


# for November 2022
Subscribers
Minimum monthly active user volume
1. Bitcoin
4,728,197
665,043 (+38%)
2. DOGE
2,369,562
591,527 (+83%)
3. Ethereum
1,575,595
143,303
4. Cardano
696,316
147,160 (+30%)
5. Shiba-Inu
477,647
97,855
6. Litecoin
356,907
42,898
7. XRP
355,078
29,851 (+16%)
8. Monero (for info)
278,077
110,311 (+38%)
Minimum monthly active user volume: Estimated number of monthly active users by monitoring daily active users at different time zones.

Here is a portfolio comparison with the cryptocurrency index:


Input (4 months)
Current Value (22-12-01)
Cryptocurrencies
Reddit Index
$560
$535 (-4.5%)
BTC, ETH, DOGE, ADA, SHIB, LTC, XRP
Crypto Tech Index
$560
$506 (-9.6%)
ETH, BNB, DOT, ADA, AVAX, MATIC, IOTA

I was surprised that despite all of the bearish news and stories in November, my Reddit portfolio is only - 4.5% down overall. The main winner was Litecoin! Many redditors asked me last time why I bought such an old coin. And here's the beauty of an index: it has specific criteria/strategies, and you simply buy what's inside. In this case, I let the Reddit community decide on the top cryptocurrencies.
In fact, when comparing the Reddit index to other indexes such as the global crypto market, we have once again beaten the crypto market (see ranking on quantintegral.com). Quant Integrals Reddit index has a slight difference since the start of December: They have Monero instead of XRP in their index. They calculate their ranking metrics a bit different and take active users into consideration. Actually I would ditch XRP for Monero too, but unfortunately Monero is not available for me.
The Reddit index didn't let me down during these trying times. This also indicates that the majority of Redditors did not invest in projects funded by FTX or other VCs. Nonetheless, the downfall of FTX had an impact on the entire crypto market.
My condolences to everyone who was unable to withdraw from FTX and other likes. Everyone who has suffered a significant setback should remember that as long as you are alive, you can begin again. Learn from the past and improve and expand the next time. Consider my experiment: I began with a $0 portfolio a few months ago and have since amassed a good sum, which I am very proud of. I am optimistic about the Reddit index and the crypto tech index, believing that the crypto market will turn around and my portfolios will skyrocket one day. I hope that with this experiment, I can give others a perspective on how to survive a bear market.