How to Build A CryptoCurrency Portfolio For Newbies
The crypto world is a wild market with varieties of options ranging from the top CryptoCurrency rated to the newest coins in the field. As an investor or a young newbie intending to build a portfolio and stack up some coins for the starter, it is important you are smart with your choice of coin “species”, knowing the when the how and the what to buy is important.
A quick disclaimer: This isn’t a piece of financial advice, just my assumptions and beliefs about what I think is the best way to build a portfolio as a newbie.
What Is A Cryptocurrency Portfolio?
See it as your dashboard. It is cryptocurrency management software that ensures you can track your coins, the investments and get the analytics required to give you a perfect understanding of how the market is and what to do and not to do.
The portfolio allows you to collect as many coins as you want and allows you to monitor the growth of each coin with analytics.
As an investor or a young newbie intending to build a portfolio and stack up some coins for the starter, it is important you are smart with your choice of coin “species”, knowing the when, the how and the what to buy is important.
Depending on what type of risk mentality you have and how much capital you will invest, it is required that you sought your portfolio with balance in order to create a lower risk and maximize gain while you do this. To get started, here are a few things I think you can do:
• Learn Investment Basics
Don’t follow the people, if you know nothing about crypto don’t jump in yet, take a few courses, read a few articles, see a few videos to get acquainted with the basics so you don’t get fucked up with how pathetic it can be to invest in crypto when you do not know of it.
Crypto has existed for years, since 2009 and since then it has been the talk of the town, everyone wants to get into it and most of those who are in it are more of the new folks who are searching for easy ways to get things done but crypto requires more understanding.
• Know That Bitcoin Is The Shark In The Sea and Ethereum the Second Big Thing:
This is true, mention cryptocurrency, and the first coin that comes to your mind is Bitcoin. It is the shark in the pool but doesn’t forget there are other fishes in the pool likewise. Bitcoin can be regarded as the leading crypto coin with above **40% SHARE OF THE GLOBAL CRYPTO MARKET HUB. **
If you get pressured quickly, you will find yourself in the drain because this coin is quickly influenced by the market. The first move to building that portfolio is to follow the crowd and get the big shark in your sea too, at least let 50% of what you get be the big shark then get some 30% Ethereum to back it up, about 20% of growing coins with potentials.
• Play the Long Run Game
Building a sustainable and strong crypto portfolio is important. Newbies are not so impatient, getting involved and bothered by day-to-day changes in price. Building a strong portfolio will require being patient enough to win the market. If you rush too much, you will get dipped so badly.
• You Need To Know the Growth System (Study the Altcoins)
The crypto market moves in cycles, most importantly in a 4-year cycle of Bitcoin which is sponsored by halving. As you intend to build your portfolio, building your knowledge of some crypto market basis is also important. Knowing the bear market and bull market is also quite important.
It is a period of accumulating coins and growing coins (The periods of accumulations and intense growth respectively.)
Altcoins are cryptocurrencies that are other than Bitcoin or Ethereum. In November 2021, a list was published from the CoinMarketCap, a total of 14,000 cryptocurrencies are launched with bitcoin the shark and Ethereum the small shark taking over the marketplace with above 60% of the entire market while the other thousands struggle for survival.
You can call altcoin “Alternative coins”, in my locality here; I say coins that you run to when the big stuff are not so convenient. That is just the difference, the framework of bitcoin and all other coins are alike.
Read more about Altcoin
• Monitor your portfolio so you don’t get too surprised
It is important you monitor your growth as an investor or a trader so you can know your figures right. There are different crypto portfolio trackers and the most common of them are Coinstats and Coin Market Manager.
Other Crypto Portfolio Tracker apps you can use include:
Pionex, CoinSmart, Crypto.com, Coinmama, Blockfolio, Delta etc…
Conclusion
Cryptocurrency is the new normal. Getting your hands on it is important, but doing it the right way is the key to being successful as an investor. See more audios and read more articles to enlighten you about the basics before getting started. Good Luck.
Posted Using LeoFinance Beta
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