How Stoic Compares to Bitcoin and Equal-Weighted Crypto Portfolio

The goal of Stoic’s long-only portfolio is to offer returns that are superior to other cryptocurrency portfolios.

However, there would be some cryptocurrencies that would outperform Stoic by a large margin in any period. This could even be Bitcoin or ETH — these assets typically appreciate before the rest of the crypto market. Of course, this is only clear if you’re looking backward.

Since Stoic’s portfolio went live in March 2020 (there was no mobile back then), it has outperformed Bitcoin and other benchmarks.

Note: the past returns do not guarantee that outperformance will continue.

Managing Your Risks: How Much to Allocate to Stoic

When and how much to put into an account managed by Stoic is your personal choice.

A traditional financial adviser would likely categorize this as an extremely risky investment. Their main argument would be that crypto is volatile. Yet we’ve discussed that it is a price of high potential returns.

Some Stoic users treat it as a call option or even a gamble: they’re expecting high returns akin to what Stoic delivered in the first half of 2021 but are ready to risk their total deposit. They put pretty small nominal amounts, which are probably large portions of their net worth.

These people are often nervous about weekly returns and get angry when things don’t go according to their expectations. But that doesn’t help.

“You shouldn’t give circumstances the power to rouse anger, for they don’t care at all.” — Marcus Aurelius.

On the other hand, some users view Stoic as a smart passive investment, a beta play on the crypto market as a whole. Similar to an index fund that tracks the S&P 500 or Nasdaq 100.

These people want to be invested without spending too much time and emotion on doing manual rebalancing. These people regularly add to their deposits (especially during corrections) and don’t stress about weekly or even monthly returns. Their investment horizon is at least several years.

Again, it’s up to you to decide how to use the Stoic portfolio. It’s simply a tool.

Often, however, the biggest risk is no risk at all.

And with a $1,000 minimum starting balance, the Stoic portfolio is available to practically anybody.