Crypto Portfolio Update: Adding AION and SONM to the Mix

When you're managing a crypto portfolio in a volatile market, knowing when to rebalance can make or break your returns. We recently made some strategic moves in our model portfolio, adding two promising assets while trimming positions that had run up. Here's what changed and why.

Where We Started

Our model crypto portfolio launched in early January 2018 with a diversified mix of altcoins. By late January, the numbers told an interesting story: we were sitting at a 7.84% drawdown from our initial investment, which honestly wasn't bad considering the broader market conditions at the time.

The portfolio had some clear winners and losers. RLC emerged as our best performer, jumping 28% after getting listed on Binance. That listing gave it serious visibility and liquidity that smaller exchanges just can't match. On the flip side, REQ took a beating with a 38% decline, caught in the undertow of a market-wide correction that was punishing even solid projects.

The Rebalancing Decision

Rather than sitting tight and hoping for a reversal, we decided to reallocate. The goal wasn't to abandon our thesis on existing holdings, but to capture opportunities in two projects we'd been watching closely.

We reduced our stakes in RDN (Raiden Network) and ICX (ICON) to free up capital. Both remain in the portfolio because we still like their long-term potential, but they'd appreciated enough that taking some profits made sense. When you're building a diversified crypto portfolio and spot compelling opportunities elsewhere, 👉 quickly swapping between assets without high fees becomes essential. The ability to rebalance efficiently can significantly impact your overall returns, especially during periods of rapid market movement.

Meet the New Additions

AION caught our attention as what we considered an undervalued alternative to ICX. It's a blockchain platform focused on interoperability, allowing different blockchains to communicate and transfer value. Think of it as infrastructure for the multi-chain future that many in crypto were starting to envision. The technology was solid, the team credible, and the valuation looked attractive compared to similar projects.

SONM represented our second bet on decentralized computing, joining RLC in that category. SONM's approach to creating a global supercomputer using distributed resources appealed to us as a hedge. If decentralized cloud computing took off (and we thought it would), having exposure to multiple horses in that race made strategic sense.

The New Portfolio Structure

After executing these trades, the portfolio became more balanced across different crypto sectors. We maintained exposure to infrastructure plays, decentralized services, and platform tokens. The diversification wasn't just about spreading risk—it was about positioning ourselves across multiple potential growth vectors in the crypto ecosystem.

The rebalancing process itself highlighted something important: liquidity matters. Moving between positions quickly, without excessive slippage or fees, allowed us to capitalize on the opportunities we'd identified. In fast-moving crypto markets, the difference between spotting an opportunity and actually capturing it often comes down to execution speed.

What This Means for Your Portfolio

If you're managing your own crypto holdings, the lesson here isn't to copy our specific trades. Markets change, and what made sense in early 2018 might not apply to your situation today. The real takeaway is about portfolio management discipline.

Regular rebalancing helps you lock in gains from winners and redirect capital toward new opportunities. It forces you to take profits when things run up and add to positions when they're beaten down. That's harder than it sounds—selling winners feels wrong, and buying losers requires conviction.

The key is having a framework. Set allocation targets, review them periodically, and don't be afraid to make adjustments when your thesis changes or better opportunities emerge. Whether you're holding five tokens or fifty, active management beats passive hoping when markets get choppy.