About Return on Investment of Top Market Cap Cryptocurrency Portfolio

Abstract

In this work we give the results of calculations of the return on investment for cryptocurrency portfolios based on the market cap in 2014 – 2021. We try to find a simple profitable and low-risk strategy for an average investor who has only access to the open statistical data. There is a widely known strategy of this sort - to regularly buy bitcoin, so that in several years it gives profit according to the historical data. We investigate if there is such a strategy based on altcoin portfolios. We find that the top 2-10 and top 11-50 portfolios are significantly worse than the bitcoin strategy, while the best results we see in the top 101-500 portfolios but they also show greater risks than bitcoin strategy and require a bigger capital.