Executive Summary

As an individual investor, I am seeking to allocate an initial $1,000 investment into the cryptocurrency market with the goal of building long-term wealth through strategic exposure to this emerging asset class. This business plan outlines my initial portfolio allocation, ongoing management approach, and learning & development strategy.

Investment Thesis

Cryptocurrencies represent a compelling investment opportunity due to their potential for significant capital appreciation, increasing mainstream adoption, and the underlying technological innovations driving the space. By carefully selecting a diversified portfolio of established cryptocurrencies, I aim to capture the upside potential of the crypto market while mitigating some of the inherent volatility and risk.

My initial focus will be on the top cryptocurrencies by market capitalization - Bitcoin (BTC), Ethereum (ETH), and a smaller allocation to Litecoin (LTC) or Bitcoin Cash (BCH). These assets have demonstrated strong market positions, robust developer communities, and viable real-world use cases.

Portfolio Allocation

Initial $1,000 Investment:

• 50% Reserve for future purchases: $500

Remaining broken up as

• 50% Bitcoin (BTC): $250
• 30% Ethereum (ETH): $150
• 20% Litecoin (LTC): $100

Ongoing Investment:

Recurring DCA Purchases:

• Establish recurring bi-weekly purchases of $50 per cryptocurrency (BTC, ETH, LTC)
• This allows you to gradually build up your position size over time, rather than investing a lump sum all at once

Coordinating with Price Alerts:

• If the price of a cryptocurrency hits the lower alert threshold (e.g. BTC below $45,000, ETH below $1,800, LTC below $200), you may want to consider pausing or reducing that particular DCA purchase for that period.
• The idea is to avoid buying more of an asset that may be in a temporary downtrend, and instead focus the DCA funds on the other holdings that haven't hit their alert levels.
• Conversely, if a cryptocurrency hits the upper alert threshold (e.g. BTC above $55,000, ETH above $2,200, LTC above $250), you could consider increasing the DCA purchase amount for that asset to take advantage of the upward momentum.

The key is to remain flexible and adapt the DCA strategy based on the current market conditions for each asset. The price alerts will help you identify meaningful market movements that should influence your periodic investment decisions.

The overall goal is to use DCA to gradually build positions, while also being responsive to short-term price fluctuations to maximize the value of your investments over time. Let me know if this helps explain the interaction between the DCA plan and the price alert thresholds!

Portfolio Management Plan

I will closely monitor the performance of my cryptocurrency portfolio, setting price alerts to notify me of significant market movements. The following thresholds will guide my re-balancing and profit-taking decisions:

• Bitcoin (BTC): Set alerts for 5% price increases/decreases from your purchase price (e.g. $45,000 and $55,000)
• Ethereum (ETH): Set alerts for 7% price increases/decreases (e.g. $1,800 and $2,200)
• Litecoin (LTC): Set alerts for 10% price movements (e.g. $200 and $250)

If a holding sees a 20%+ price increase in a short time-frame, I will consider taking partial profits (10-25% of that position). If a cryptocurrency significantly under-performs the rest of my portfolio or the broader market, I will re-evaluate whether to reduce or exit that position.

I will review my entire portfolio on a quarterly basis and make any necessary adjustments to maintain my target allocation.

Learning and Development Plan

To continuously expand my knowledge and understanding of the cryptocurrency market, I will undertake the following learning initiatives:

• Complete the Coinbase "Crypto Basics" and "Investing in Crypto" learning modules within the first 3 months.
• Read the book "The Bitcoin Standard" by Saifedean Ammous to gain a deeper understanding of the fundamental aspects of Bitcoin.
• Subscribe to industry-leading newsletters (e.g. The Defiant, Messari) to stay up-to-date on crypto news, trends, and emerging projects.
• Attend a local cryptocurrency meetup or conference (if feasible) within the first year to network and learn from experienced investors.

Milestones and Checkpoints

Short-term (3-6 months):

• Establish the initial $1,000 portfolio allocation.
• Become comfortable with the mechanics of buying, holding, and monitoring cryptocurrencies.
• Complete the Coinbase learning modules and read "The Bitcoin Standard."

Medium-term (6-12 months):

• Evaluate the potential for portfolio diversification beyond the initial 3 cryptocurrencies.
• Review progress on the learning and development plan, adjusting as needed.
• Assess the overall investment performance and make any necessary strategic changes.

Long-term (1-2 years):

• Continue to monitor the portfolio, re-balance as appropriate, and take partial profits when thresholds are met.
• Expand cryptocurrency knowledge through ongoing learning, networking, and staying informed on industry developments.
• Assess the viability of the investment strategy and make any significant adjustments to the portfolio or approach.