How to correctly create an investment crypto-portfolio for 2018
Which currencies should be invested in 2018? How correctly to allocate the money resources? How to make an investment crypto portfolio? These are the issues we will cover in this article.
Is there any point in investing in the crypto currency?
Digital currencies now gain incredible popularity and one should expect the development of this trend in the coming year, so you should think about how to allocate your funds most rationally by investing in this industry.
The main advantages of investing in coins is that you can start with small amounts of money and most control all receipts to your accounts, and proper storage will protect you from losing your savings.
Investment strategies
The first rule when compiling a balanced portfolio is diversification. It must be diverse.
Experienced investors advise distributing their investment capital in this way:
About 80% invest in safe and reliable coins, which are in the first places by capitalization.
15% to invest in promising currencies that are in demand.
5% - in inexpensive projects that demonstrate potential.
If you are not averse to risk, then in the portfolio you can include such a tool of the crypto market as ICO. In this case, the capital is distributed as follows:
About 60% are crypto-giants such as bitcoin, ether;
25% - altcoyins;
15% - ICO.
In the crypto-currency portfolio, it is important to distribute funds competently among the major market players and inexpensive promising projects
The most profitable strategy is to buy for long ("buy & hold"). This is especially true of bitcoin. Today, many invest in it in the hope that over time it will become a real alternative to the existing financial system.
Be sure to buy crypto currency on the correction, and better on a good correction. It occurs regularly in the market.
Principles of selecting altcoins for investment
Pay attention to:
Perspectivity of the system: originality and the possibility of practical application of the idea;
Course dynamics (over a long period of time);
Community and development team
Outlook for the 2018 currencies
Bitcoin (BTC)
Bitcoin - the basis of the basics of any crypto-portfolio. This is the first crypto currency, which appeared in 2009 and in the near future the leadership is not going to concede.
Forecasts for this currency vary. But in general, bitcoin on a long-term interval demonstrates a steady increase in the price. It has good liquidity, this currency is trusted, more and more outlets are accepted for payment by BTC.
Ethereum (ETH)
Serious player in the crypto-currency market, which breathes in the back bitcoin. It is a platform on the basis of which decentralized applications are created. The main feature of this system is smart contracts, the implementation of which is provided by computer algorithms. The cost of ETH tokens soared after interest from large corporations such as Microsoft, Deloitte, Amazon, JP Morgan, Toyota and others showed interest in the platform.
Ripple (XRP)
This platform with a capitalization of more than 7.5 billion dollars closes the top three leaders. The currency is aimed at working directly with banking institutions and allows you to make a payment in any seconds in any currency, regardless of where in the world the sender and the addressee are located. Another advantage is the considerable savings on commissions from each transaction.
Litecoin (LTC)
Unlike BTC, Litecoin allows you to make transactions much faster, it has a simpler algorithm for generating tokens.
Dash (DASH)
This platform with a two-tier architecture positions itself as a worldwide payment system. Its main feature is the privacy of payments and the high speed of transactions. Everyone who bought Dash at the beginning of the year for $ 10 per coin, today can already sell each token for 640 USD.
Purchase and storage of crypto currency
The purchase of coins is carried out on crypto-exchange exchanges. The most reliable ones are Bitfinex, Poloniex, Bittrex, EXMO, LiveCoin.
Before buying, you need to find the following information:
site conditions;
supported options for entering and withdrawing money;
the amount of commissions;
presence of necessary koins on the stock exchange;
When working with large amounts of money, it is necessary to pass an additional verification of the user.
After you have formed your portfolio, you need to regularly monitor changes in the dynamics of the rates in the market and look for new advantageous options for future investments.
As a reliable option for storing your funds, we offer offline wallets. However, if you prefer online services, then you should remember that your wallet should be protected with a complex password, which in the future should be stored in a safe place.
The main risks that you can face, invested in the crypto currency:
Sharp courses
Breaking up the stock exchange or arresting the servers
Robbery
The effect of the "low base" is a situation in which the developers have artificially inflated the price of the crypto currency several times, creating the risks of returning the coin value to the initial level.
Conclusion
Investments in the crypto currency in the coming year are promising. Serious intentions of the government in relation to the crypto industry say that these technologies will be implemented over time and it will be better if you are already ready for it.
When composing a crypto-portfolio, one should remember several main rules:
Diversify
Be prepared for drastic changes in the course and do not make hasty conclusions
Risk only those funds that you are willing to take risks
Invest in Crypto-Currency
