My Crypto Portfolio Diversification

in Project HOPE4 years ago

During my crypto journey over the last 2 years, I have learned that its very important to keep the investment diversified because anything can happen in the future and sometimes we just can't expect the next movement. We can even take it to the positive side that through we also have the possibility to earn more. Its not suggested to put all the money in one instrument instead we can put it on various so if one does not perform well then also don't lose much and other components can help us to adjust the loss and in overall we can be in profitable state.

I have tried to keep my crypto portfolio diversified and here is what it is now as per the current market. It is suggested that we should hold 50% in Bitcoin and approx 25% in Ethereum and the rest can be used for the remaining coins. So I have tried to maintain the same however I got a slightly higher percentage with my ETH holding. Currently, I have approx 55% (54.91%) in bitcoin and 40.62% in Ethereum, and the remaining 4.07% is for the other altcoins. This does not include HIVE because all my hive stake is powered up and I am not holding it on any exchange. I do invest through DCA on Bitcoin and ETH and this is helping me to build something for the long run.

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In my other coins, I have DOT, BNS, and some other low-value coins that are not much in quantity and value but I am keeping considering the sudden pump in the market. Although its not a high value but still good to keep if sometimes there can be a pumping opportunity and this can turn out to be a profitable investment. I realize that there is a need to reduce the ETH holding a bit but I am not in the mood to sell off anything as of now. Probably I will invest in some other coins that can help me have the other percentage higher.

Bitcoin and Ethereum are the two leading coins in crypto so its very important to keep both in the portfolio and I did the same. Hive is one of the coins that is helping me increase my stake through curation and another stake APR of 2.87% and even I want to increase the stake more so there is no plan to touch that side.

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Some of the ways that I follow with my holding which is helping me earn passive income in form of the same coin. For example- I stake bitcoin and I earn bitcoin as a staking reward which is a great way to increase my BTC holding and same I follow for ETH as well. The reason why I hold a major chunk in both coins is that it is helping me earn decent staking earning that I reinvest and this is how my holding is growing. Obviously, I have the option to withdraw that stake income but as already mentioned that I am not on the way to the building.

I am not concerned about how the market is doing these days because of the Ukraine issue however the recent dip has certainly got me some extra amount of BTC through DCA, however, my plan remains the same. I would love to get the suggestion for my portfolio diversification and if there is a need of improvement on this.

Thank you so much

Stay Safe

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Hello @reeta0119
I see you invest wisely. Which is one way to back thinking ahead, congratulations on that.
There are probably those who.don't have ethereum or don't have BTC, and prefer to have other type of cryptocurrencies.. but, being these the main ones, the logical thing to do is to hold of both. Particularly I am also more with ethereum than with BTC. Hive some saved also, steem the same. Or a few others.

Thanks for sharing your thoughts about it.

Personally, I have a paranoia staking my major holdings. This space is a wild one, not to discourage anyone though. But personally, I only stake a (very) minor percentage of my investments

Thanks for nice comment.

always do trade with stop loss and risk management

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