Setting Up a Crypto Portfolio
Important steps and guides to consider
Getting into crypto the right way should be a priority to any potential investor. Buying different coins or tokens makes up a portfolio.
But setting up a good portfolio involves getting assets in different areas of cryptocurrencies.
Risk Management is also important. Some coins are high-risk, there are medium-risk some are equally low risk.
Steps to building a balanced portfolio
1. Do Your Own Research. This can’t be over-emphasized.
2. Only invest what you can afford to lose. You will have peace of mind even if things go wrong.
3. Balance your risk by dividing your portfolio based on the different risk levels. Have some high-risk investments and low-risk investments too.
High market cap coins — low risk. Low market cap coins High risk.
4. Have some liquidity just by holding stable coins. This helps when there’s a need to buy dips. Or to interact with some DeFi platforms.
5. Change with the tide. If the situation of the market changes, reorganize accordingly.
Portfolios are tracked and monitored by trackers like coinmarketcap.com and coingecko.com, making it easier.
managing a portfolio with so many coins may look bad because some losses may cancel out some gains. Minimizing the size and concentrating it will be profitable with a little strategy, in the longer run.
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