Bitcoin is the most liquid cryptocurrency. It is so popular that a lot of currency analysts regularly chart it against the US Dollar and other major fiat currencies.
The chart here (taken on February 10, 2021 at 15:46 GMT from https://uk.tradingview.com/symbols/BTCUSD/ ), shows that Bitcoin has indeed constantly increased in value against the US Dollar throughout 2020. In the period between February 5, 2020 and February 4, 2021 its value against the US Dollar has increased by 303.92%.
Could a managed portfolio of diversified cryptocurrencies have done better? Looking at the data available from Crypto Funds Trading™ (CFT), an online manager of cryptocurrencies portfolios, it looks like investors could do better than sitting on their holdings of bitcoin.
The performance of a managed portfolio strategy between February 4, 2020 and February 4, 2021 proved to give better results than sitting on your holding. We looked at the growth milestones (Month to Date, Three Months, 6 Months, and 1 Year). The chart in Figure 2 in page 2 gives you an idea of the growth in value of a bitcoin holding.
If we compare that performance of Bitcoins to the performance of a CFT managed portfolio strategy, it is clear that a managed strategy is better.
