Hello everyone, I'm new to Leofinance. Hopefully, I'll be accepted by friends who have been a part of this community for a long time and want to teach others how to write well on leofinance.
On this first occasion, I will talk about developing a portfolio. I've previously posted this article on one of the platforms, but I'll write in a different style and language this time.
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Cryptocurrencies have grown in popularity in recent years among people all over the world. People's attitudes toward saving and transacting have shifted as a result of the presence of this digital currency. Many large corporations have invested in cryptocurrencies, demonstrating that doing business with cryptocurrencies can be extremely profitable. Individuals who were previously mediocre economically can become millionaires and even billionaires overnight.
Dengan diawali oleh bitcoin, selanjutnya berbagai jenis Cryptocurrency muncul sejak. Bahkan banyak platform blog yang menawarkan reward kepada penulis dlam bentuk token cryptocurrency. Dalam hitungan tahun juga muncul banyak broker yang ingin ikut ambil bagian dari menjamurnya cryptocurrency.
Starting with bitcoin, various types of cryptocurrencies have since emerged. in fact, many blogging platforms provide author rewards in the form of cryptocurrency tokens. In just a few years, there has also emerged a slew of brokers who want to take part in the burgeoning popularity of cryptocurrencies.
Due to the growing number of brokers/coin exchanges, the owner strives to stand out from the crowd. They try to differentiate themselves by offering some additional features on the platform in addition to exchange, trading, and steaking. With these various features, it is easier for us to be a part of the crypto world. Every day, millions of people trade on an exchange platform with thousands of different types of coins. However, if you don't know how to trade well, don't know how to read the market, and don't know how to trade, you should be able to invest there.
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In general, there are several things you should know before investing, such as which coins to invest in that will not harm you. To answer your question, that is what prompted you to create a portfolio in the first place.
**1. The Reasons for Creating a Portfolio
- Factors to consider when creating your cryptocurrency investment portfolio**
The primary reason for creating a cryptocurrency investment portfolio is to reduce risk.
Despite the fact that the crypto world has produced numerous millionaires and billionaires, investing is also not an easy matter. Investing involves a number of risks. And, if you want to invest, you should be aware of the risks.
There are two major dangers to consider:
• The cryptocurrency market is risky.
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Many digital assets exist in the form of tokens built on the blockchains of third parties, such as the Bitcoin and Ethereum blockchains. This will have an effect on the token's value, as it must follow the original coin on the blockchain. This means that if the price of a genuine coin, such as Bitcoin, rises, so will the price of the tokens that are linked to it. In contrast, if the price of bitcoin falls, the tokens that follow it will suffer the same fate.
• Crypto-specific risks
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In addition to the market risk that digital assets that rely on the blockchains of third parties face, risks to the assets themselves can occur. For example, network failure, theft by hackers, and so on.
Factors to consider when creating your cryptocurrency investment portfolio
Market Situation in the Cryptocurrency
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As I previously stated, there are two coins (blockchain) upon which several other digital assets rely. The rise and fall of coin prices have an impact on the Crypto market. It also has an impact on a person's investment decisions.
As a result, it is critical that you understand when is the best time to buy and invest in Cryptocurrency. Most investors buy during weak market conditions and then invest for a set period of time until the market conditions improve in value.
For example, towards the end of the week, there was a significant drop in the Crypto market. When the value of Bitcoin has dropped significantly, that is when you should use it to purchase cryptocurrency and invest in it.
Investing and Trading
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Before you decide to invest in a cryptocurrency, you must first consider, comprehend, and research the digital asset. Although cryptocurrencies have many benefits, they are offset by numerous drawbacks if you choose the wrong asset. Many investors have suffered massive losses as a result of their inability to understand the assets they choose.
There are many investors who invest simply because they want to participate, even they are willing to spend all of their conventional currency to buy an asset blindly because they have heard that the asset has a profit opportunity in the future. As a result, the asset is either a fraudulent asset or the project is closed.
What you should do is conduct fundamental analysis on various crypto projects before deciding to invest in them. You can conduct analysis by reading the whitepaper, determining the size of the community, examining its track record of success, and determining how many coins are currently available on the market.
Invest within a specific time frame.
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In addition to conducting fundamental analysis of the asset's clarity, you must also conduct a technical analysis to study the coin's future indications. Technical analysis can provide information about price changes that occur within a specific time frame. You must read the chart with the help of candles in order to be certain about the prices that occur at specific times and thus choose the time period for investing.
Personal qualities
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When you have completed various analyses to determine the value of an asset, you must also have a thorough understanding of that asset or another asset. For example, if you currently have extensive knowledge of hive coins, you understand the price journey, can forecast future prices and are aware that hive can also be invested in the form of power, you should do so on hive coins.
In essence, please invest in assets that you are well-versed in. If you learn more about different coins in the future, you can add them to your portfolio.
Cryptocurrency investment portfolio that is well-balanced
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You should also include two major coins in your portfolio to reduce the risk of your cryptocurrency investment. As I mentioned in the previous article, there are numerous assets that are based on the two main coins, Bitcoin and Ethereum. You can also add investments to the two coins to keep your investments balanced. Because the coin already has a clear track record and is unquestionably a fraud, or the project was closed.
Coins for passive income
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In addition to investing in the two main coins to reduce risk, you can also invest in coins that provide passive income. This is deserving of a spot in your portfolio. Passive opinions are provided by coins such as Hive, Steem, Blurt, TRX, and others.
The coin has a platform that can provide you with passive income by delegates, power, and voting. Investing in coins that generate passive income can lower your risk of loss. Because you benefit from the amount even if the price falls.
Stable coins
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Stable coins should also be included in your Cryptocurrency investment portfolio. Stable coins I mean here are coins that have a balanced price, there is not too much of a significant change in price. Stable coins really help you in times of emergency you need conventional money.
Cryptocurrency portfolio tracker.
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Finally, you can use some portfolio trackers that will help you find information about the cryptocurrency assets in your portfolio. There you can see up-to-date statistics on the performance of these assets. There are some of the best Crypto portfolio trackers including Delta, Coin Stats app, Blockfolio, Bituniverse, etc.
In conclusion, don't invest in cryptocurrencies that you don't understand. Before you decide to invest in Cryptocurrencies, make sure you have a portfolio first
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