The $10,000 Experiment

A basket of (faux) cryptos and a quarterly check-in

I talk a lot about the principle of “time in the market, not timing the market”.

I do this because I’m a big proponent of long-term investment in crypto as a viable way to build wealth. Yes, there is space for short-term trading and flash decision making, but I strongly believe that the foundation for success lies in holding a basket of currencies for months or years. I also believe in a multi-chain future.

With all that in mind, I propose an experiment.

I’m going to run a chart on a hypothetical investment throughout this year to see what the return on investment will be. Let’s say we have $10,000 to invest, and that we want to spread that money over several different cryptos. We’ll make this “fake” investment with prices on January 3, 2022, and check in for the last time on December 31, 2022.

So, for all intents and purposes, a year.

Now, before we go any further, please remember: these are fake dollars, and this is not financial advice in any way. You also might differ with my selections, and that’s fine. This is just for fun. This experiment is for entertainment purposes only, and I do not recommend that you take this as advice for any investment you might make with your hard earned money. We are strictly doing this to see what will happen to these particular investments over the course of 2022.

Ready?

Let’s divide up our $10,000 this way:

• $2,500 to Bitcoin ($BTC) at $46,498.52

• $500 to Cardano ($ADA) at $1.33

• $500 to Polygon ($MATIC) at $2.46

• $3,000 to Ethereum ($ETH) at $3,822.78

• $1500 to Algorand ($ALGO) at $1.73

• $1,000 to Solana ($SOL) at $170.73

• $1,000 to Polkadot (Dot) at $29.89

And here are a few other caveats:

• Price analysis will include only the ROI of the base investment

  • For example, Algorand has an automatic APY and a governance reward system. Analysis will not take into account either of these aspects.

• Price analysis will assume only returns from holding the investments, not trading.

• Updates will occur at the beginning of each quarter, as well as the end of 2022.

So there we are! Let the $10,000 experiment commence! What do you think the result will be at the end of 2022?

The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.