[Crypto] Speculation vs Value Investing

This post will end your speculation and help you ‘value invest’ in cryptocurrencies.

I have been investing in crypto for a few years now. And with a few cycles under my belt, I have learned a few things.

Objectives of Investing in Blockchains

Why I am investing in Blockchain Projects?

  • Earn more $$$
    Simply, I am trying to increase my wealth in Fiats / Stable coins
  • Build Crypto Wealth
    Earn more native currencies (ETH, BTC, MATIC, MANA, SAND)

I categorise my investment into two major categories

  1. Blocks for Blockchain
  2. Community

Before we go any further, two things…

  • This is not an investment advise. DYOR
  • As I learn more about the Blockchain, this thread is open to improvement

Why I am Investing in Blockchain projects?

I believe that blockchain will drive the future of the Internet. We can call this phase as ‘Web3’.

Web1, we consumed on the internet.
Web2, we interacted with the internet.
Web3, we will own & govern a part of the internet.

Web3 is basically taking power from the big organizations of the world and democratizing the internet.

Caution: Democracy has its flaws and so does Web3.

As Web3 is still evolving, the current projects might not be around after a few years, but we will have better projects for sure.

1. Blocks for Blockchain

We will have to wait for a few years to have a fully decentralized blockchain operation.
These blockchains will have important parts to function as a decentralized system for the world.
And all the projects which are the important parts of a blockchain go into this category.

Following are the subcategories

  • Layer1: This is the basic blockchain with nodes (ETH, Avalance, Binance Smart Chain, Tezos, Solana)
  • Layer2: Projects built on Layer1 which enhances the underlying L1
  • Oracles: Oracle is a bridge between the blockchain and the real world. It is like a Chain API. (LinkChain, Supra Oracles, Band Protocol)
  • Decentralise Storage: Projects which help decentralised storage for Web3. (StackOS, File coin)
  • Bridges: Bridges allow data/tokens to flow from one blockchain to another. (Uniswap, xPloynate)
  • Marketplaces/Exchanges/Wallets: As the name suggests (BNB, MetaMask, Coinbase)

2. Community

Community Projects that have their value in communities.

Respectfully, I put them into speculation. Don’t get me wrong, but the basics of these projects is the community and IMO communities are fragile as compared to the Blocks of Blockchain


  • Shibu
  • Doge Coin
  • EGC

I divided my investments as follows

  • 90% in Blocks for Blockchain
  • 10% in Community

If one fine day, I decided to not invest further, the portfolio should look like this

  • 80% in Crypto Wealth
  • 20% in Stable coins or Fiat

P.S. Not Financial Advice. DYOR