$1k invested into the Top Ten Cryptos in January 2021 – UP +240% (Q1/Month Three Update)

[ Month #3 of the 2021 Top Ten Crypto Index Fund Experiment – UP +240% ](

***See the full blog post with all the tables*** [***here***](***.***

**Mooooon Drop!:** There’s a hidden musical reference below, what is it? ***71 Moons to the first person to name the song and the artist! Why 71? That’s worth about $5 (71*.053),*** *my way of encouraging the winner to go for a* [r/CryptoCurrency]( ***special membership.*** To give more people a chance you can’t win if you’ve already won this month.


* **What’s this all about?** Back in January 2018, I made a homemade crypto Index Fund, purchasing $100 of each of the Top 10. Crypto winter started immediately after, but I haven’t sold or traded and have been reporting monthly ever since. I repeated the Experiment 2019, 2020, and 2021. ***Learn more about the history and rules of the Experiments*** [***here***](***.***
* **March Winner** – **BNB,** for the second month in a row, followed by **XRP.**
* **Overall since Jan. 2021** – **ADA** flipped by **BNB**. **Litecoin** and **BCH** slowest out of the gate.
* **2018+2019+2020+2021 Combined Top Ten Portfolios are returning 333%.**
* Special reader-suggested analysis below comparing the Top Ten approach to hypothetical Top Three approach.


## Month Three – UP 240%

[ $1k into 2021 Top Ten now worth $3,399](

Though nowhere near as dramatic as [last month](, the Top Ten Class of 2021 had a very strong March.  With the exception of **ADA**, every crypto finished in the green and the portfolio as a whole had a monthly gain of over 45%.  First quarter results: the 2021 Top Ten are up +240%.  Newbs: don’t beat yourself up for just getting into crypto: even if you just joined recently, looks like you’re doing alright.

## March Ranking, Movement Report, and Dropouts

Two ups and four downs this month:


* BNB – up one place (#4→#3)
* Tether – up one place (#5→#4)


* BCH – down three places (#11→#14)
* ADA – down two places (#3→#5)
* LTC –  down one place (#8→#9)
* LINK – down one place (#9→#10)


[ 2021 Top Ten Rank, only BCH has dropped out](

**Top Ten dropout since January 2021:**  So far, only **Bitcoin Cash** has dropped out of the 2021 Top Ten, replaced by **UNI**.   

## March Winners and Losers

***March Winners*** – For the second month in a row **BNB** outperformed its Top Ten peers, finishing up +38%.  **XRP** came in second place, up +31%.  

***March Losers*** –  After a very strong start to the year, **ADA** came back down to earth a bit this month.  It ended March -8%, the only 2021 Top Ten to finish in the red this month. 

## Overall Update – BNB flips ADA for the lead, all cryptos in green, LTC and BCH at the back of the pack

This month **ADA** gave up the lead it had held for the first two months of 2021 to **BNB.** **Binance Coin** is having a great year so far, up nearly +800% in the first quarter.  

The $100 bucks I invested into **BNB** just three months ago? It is now worth **$897**.  

Besides **Tether**, **Litecoin** and **Bitcoin Cash** are in a tie for the worst performing cryptocurrency of the 2021 Top Ten Portfolio after quarter one.  Although the “worst performing” are still pulling in an ROI of **+63%** in three months.

## Total Market Cap for the Entire Cryptocurrency Sector:

[ 2021 Top Ten approach is beating the overall market by just under 100%](

After finally cracking the $1 trillion milestone [two months ago](, the total crypto market cap *has almost doubled* in just two months. The total market cap is up +148% in Q1 of 2021,  a better return of half of the individual cryptos in the 2021 Top Ten Portfolio, including **Bitcoin.**

## Bitcoin Dominance:

[ BitDom well down from January 1st](

From a January 1st high of 70.4% **BitDom** continues to slide as the year progresses: it ended March at 58.1%. This is no surprise if you’ve been following along with the other [Top Ten Crypto Index Fund Experiments]( – it’s rare that **Bitcoin** dominance stays as high as the 70s.

For those just getting into crypto, it’s worth paying attention to the **Bitcoin** dominance figure, as it signals the appetite for altcoins vs. **BTC.**

## Overall return on $1,000 investment since January 1st, 2021:

[ Q1 result: +240% ](

After three months, the 2021 Top Ten Portfolio is up +240%.  The initial $1000 investment on New Year’s Day 2021 is now worth **$3,399**. 

For the recent arrivals worried about being too late to crypto: a) [welcome]( and b) looking good so far!

Here’s the month by month ROI of the 2021 Top Ten Experiment, to give you a sense of perspective and provide an overview as we go along:

[ 2021 Monthly ROI, movin’ on up](

## Combining the 2018, 2019, 2020, and 2021 Top Ten Crypto Portfolios

As most readers are aware, this is the fourth year of an Experiment I started back in January of 2018, [at the height of the last bull run](  Where do we stand if we combine four years of the Top Ten Crypto Index Fund Experiments?

* [2018 Top Ten Experiment]( up +30% (total value $1,300)
* [2019 Top Ten Experiment]( up +474% (total value $5,737)
* [2020 Top Ten Experiment]( up +589% (total value $6,892)
* [2021 Top Ten Experiment]( up +240% (total value $3,399)

Taking the four portfolios together, here’s the bottom bottom bottom *bottom* line: 

**After a $4,000 investment in the 2018, 2019, 2020, and 2021 Top Ten Cryptocurrencies,** the combined portfolios are worth **$17,328** ($1,300 + $5,737 + $6,892 + $3,399).

**That’s up +333%** on the combined portfolios, a record high for the Top Ten Index Fund Experiment project, and up from +86% last month.

Here’s a table to help visualize the progress of the combined portfolios:

[ Combined ROI of all four Top Ten Experiments: +333% ](

***That’s a +333% gain by buying $1k of the cryptos that happened to be in the Top Ten on January 1st, 2018, 2019, 2020, and 2021.***

## Top Ten Index vs. Top Three Index

Inspired by a suggestion from one of our blog readers, let’s take a look at how the 2021 Top Ten approach would compare to just focusing on the Top Three.

I crunched the numbers, and to make it more interesting, I removed **Tether** from the index and pulled #4 into the Top Three.

A Top Three Index (minus **Tether**, plus **XRP**) would mean $333 into **BTC, ETH,** and **XRP.**

[Hypothetical Top Three underperforms Top Ten approach](

After three months, a Top Three Index would be worth **$2,422**, returning **+142%**.  That’s compared to the **$3,399** (**240%**) of the 2021 Top Ten.

So, at this early point in the 2021 Experiment, it would have been better to go with a Top Ten Index approach.

## Comparison to S&P 500

I’m also tracking the S&P 500 as part of my experiment to have a comparison point to traditional markets. Another month, another all time high for the S&P 500.

[S&P up +7% in Q1 of 2021 ](

The S&P 500 Index is up **7%** in Q1 of 2021.  The initial $1k investment I put into crypto three months ago would be worth **$1,070** had it been redirected to the S&P 500.

The 2021 Top Ten Crypto Portfolio is up **+240%** over the same time period. Three months in, the initial $1k investment in crypto is now worth **$3,399**.

That’s a difference of **$2,329** on a $1k investment in just one quarter.

What about in the longer term? What if I invested in the S&P 500 the same way I did during the first four years of the Top Ten Crypto Index Fund Experiments? What I like to call the world’s slowest dollar cost averaging method?  Here are the figures:

* $1000 investment in S&P 500 on January 1st, 2018 = $1500 today
* $1000 investment in S&P 500 on January 1st, 2019 = $1600 today
* $1000 investment in S&P 500 on January 1st, 2020 = $1240 today
* $1000 investment in S&P 500 on January 1st, 2021 = $1070 today

Taken together, here’s the bottom bottom bottom *bottom* line for a similar approach with the S&P: 

**After four $1,000 investments into an S&P 500 index fund in January 2018, 2019, 2020, and 2021, my portfolio would be worth $5,410** ($1,500 + $1,600 + $1,240 + $1,070)

That is up **+35%** [since January 2018]( compared to a **+333%** gain of the combined Top Ten Crypto Experiment Portfolios, a difference of  298% ***in favor of crypto.***

To help provide perspective, here’s a quick look at the combined four year ROI for crypto vs. the S&P up to this point.

[Crypto almost 300% ahead of S&P](

Since October 2020, the gap between the crypto ROI and the S&P ROI has just gotten bigger and bigger.

## Conclusion:

A fantastic Q1 for the 2021 Top Ten.  In fact, none of the [other Experiments]( had nearly this good a start during the first quarter after launch.  Up **+240%** in three months?  At this rate the 2021 Portfolio will be the best performing Experiment of the four before long… 

To the long time followers of the Top Ten Experiments, thank you so much for sticking around. For those just getting into crypto, I hope these reports can somehow help you see the highs and lows of what might await you on your crypto adventures.  Buckle up, go with the flow, think long term, don’t invest what you can’t afford to lose, and most importantly, enjoy the ride!  

Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for my parallel projects tracking the Top Ten cryptos as of [January 1st, 2018]( (the OG Experiment), [January 1st, 2019](, and [January 1st, 2020](

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  1. I’m kind of curious how the next 5 index would do (in the top ten but not the top five). I was thinking about starting a 4/20 index and buying on 4/20. I don’t think I have the self control not to sell though.

  2. Nice read. I’d be also interesting to see a small one-sentence review on what’s your perception for every coin in the top 10, regarding it’s stability solely as a project without considering the ROI.

  3. I genuinely appreciate you sharing this quality information, as it’s not often that we see this level of value. Learning from other people’s experience and mistakes, can be invaluable

  4. The only reference I could see was The Jefferson’s with “movin’ on up” but I suck at these games haha.

    Anyway, awesome work and info! The time you put into these is pretty nuts, so very appreciated.



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