HOW TO BENCHMARK YOUR PORTFOLIO

Summary from the TLDR Crypto newsletter

Crypto investors routinely deceive themselves by rounding returns, ignoring fees, and molding data to feel successful, making thorough record-keeping and predefined KPIs essential. Measuring performance against proper benchmarks like BTC and SPY and risk-adjusted metrics like the Sharpe ratio is vital to reveal actual performance. Investors can avoid emotional biases by setting honest risk premiums, factoring in probabilities of various losses, and separating portfolio logs from net-worth tracking.