Investing $1000 In Crypto? Modern Portfolio Theory



For new people to the space, they may be curious as the best way to invest $1000. In this video, we take a look at maximizing your risk-adjusted returns with …


43 Comments

  1. Man, this kind of content is what really makes you shine among the others. This was the video that made me subscribe to the Premium content.

    Can you do a detailed video on how to actually calculate the Maximum Sharpe Ratio for any given portfolio?

  2. If you put your $1000 in cryptocurrencies you’ll see the investment change every second (the changes will sometimes be bigger than you’d like). You’ll make profit one day and lose the next.

  3. Ben you are a rockstar. Such valuable content and no one is talking about risk adjusted return in crypto. More people need to bring stock market analogies into the space. + I agree with you on an extended bull run, just like the QQQ since 2010 there is no magical rule that the bull market needs to be X length after a halving.

  4. Who says the "Sharpe analysis" Will hold through for the rest of this year? If I'd been mostly in bitcoin instead of altcoins for the last 6 months I'd have had nowhere near the returns I have had over that time. During alt season you need to be in alts!

  5. I’m a little confused about how to apply the BTC and ETH ratio. Say I want a portfolio of 70% BTC and 30% ETH. Is that % in terms of USD? I assume yes, but the video was unclear. So in my example I’d want 70k USD worth of BTC and 30k USD worth of ETH. Is that the correct way of thinking about it?

  6. The bigger problem with crypto is time and behavior of investors. With volatility people become more likely to sell positions to early. As volatility increases human error increases. If you take that into account the EF at high volatility will actually curve down.

  7. Ben thanks for the analysis great chart! Would it be possible to do the same chart for other altcoins that have been longer than 3-4 years like Ada or Vechain compared to Bitcoin and Ethereum to find their percentage on the portfolio! Thanks!

  8. loved this analysis. Thanks a lot. I am enjoying a lot of content in your channel as it is justified in a fundamental and mathematical way.

  9. Benjamin, can you explain the step by step to calculate our own portfolio? feed the market history, simulate with monte carlo etc. Sorry Newbie here wants to read for his investment 🙂

  10. I know exactly why I subscribed to Ben. Grounded, well researched and objective information and some really nice laughs in between!
    wHaT iS tHiS rIsK hE iS tAlKiNg aBoUt? eVeRyThInG gOinG uP

  11. Whats really cool is i did the finance theory I course on mit opencourseware and I immediately noticed and was able to read the chart.

    To those interested, it's completely free, and Andrew lo was a very good teacher. Highly recommend. And as a serendipitous moment in time, the course takes place fall 08, in the middle of the sub prime crisis. It was cool to hear an experts thoughts as things were unfolding.

  12. Wish Cardano was integrated into a BTC-ETH-ADA portfolio. Because that’s my big 3.

    I’m gonna try to do 75% / 25% with BTC and ETH, but then also have equal amount ADA as BTC/ETH combined, since I believe it in more than any other coin.

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