Steemit Crypto Academy Contest / S5W6 - My cryptocurrency portfolio

Steemit Engagement Challenge Session 5 has entered week 6 and some last week I did not participate in the Challenge held by the community SteemitCryptoAcademy. On this occasion I will participate in the Challenge that he held by the community SteemitCryptoAcademy and for the original post of the challenge can be seen here Steemit Crypto Academy Contest Season 5 Week 6 - My cryptocurrency portfolio

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Explain in your own words what a cryptocurrency portfolio is

Cryptocurrency portfolios are the same as investment portfolios in general. A cryptocurrency portfolio is a collection of cryptocurrencies that a person owns. Within the cryptocurrency portfolio, several different assets are stored.

To have a cryptocurrency portfolio, you can do it in several ways, namely by buying coins directly or even by getting curated content like in steem that gets steem.

Do you prefer a diversified portfolio or a concentrated portfolio?

Diversified portfolio is a technique for reducing risk in investing by investing in various types of assets. The advantage of a diversified portfolio is that it can reduce investment risk. This means that if we invest in several assets and then one of the assets has a decline, it will be helped by stocks in other assets that are good.

As the name implies, a concentrated portfolio is a composition that is concentrated in stocks in the same sector and has similar characteristics. The advantage of a concentrated portfolio is the potential for high returns but with relatively higher risks. Concentrated portfolios allow investors to focus on a manageable number of high-quality investments.

If I have to choose, then I choose Diversified portfolio. Because when I invest in one underperforming area, other investments in the portfolio can offset the loss. That's especially true when investors own assets that are negatively correlated.

In your portfolio do you have any crypto assets in Hodl? Explain what is Holder in cryptocurrencies

Hodl is the act of buying an asset and holding it for a certain period of time. Hodl's strategy is to avoid trading assets based on short-term price changes.

Basically Hodl will make the price of the assets owned higher, while the number of assets owned will be the same. The Hodl strategy is often used by investors because it is considered effective by traders to avoid losses in the short term. Investors will choose Hodl and they believe that the price of their assets will increase in the future.

For now I have Hodl assets, one of which is SHIB on the Indodax market. The reason is still the same, that is, I am sure that SHIB price will again soar as high as before, even though it is currently low.

In your portfolio, you have some crypto assets in Staking. Explain what is Staking in cryptocurrencies

Staking is a popular way to earn income on the crypto trading market. Staking is locking crypto assets into the blockchain network to earn income without having to sell or buy an asset.

Staking is very similar to in a bank. Where when we save at the bank, then we will get profit or interest from the bank. In Staking we are required to lock coins.

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^{Steem Power Assets on Steemit}

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Here I have a Staking asset, namely the steem power that I have in steemit as much as 2,050 Steem Power that I have. And not only in steemit I also have staking in blurt as much as 11,370 blurt power and hive power. Blurt is a medium or platform that is very similar to steemit.

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^{Blurt Power Assets on Blurt}

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In distributing Staking prizes, each blockchain will have a different way. Whether it's how many assets are at stake or how long we are active and it depends on each blockchain.

Which do you prefer Hodl or Staking?

If I had to choose, I would choose Hodl over Staking. Because I prefer to buy assets and sell them when the price is high, even if it's risky. Instead of saving assets and getting rewards without risking them.

Indeed, when staking we are not at risk, but I prefer Hodl and I like challenges. Where if we are in Hodl's position, we can determine the profit and loss. But no investor wants to lose money, so when I do Hodl I will look for a safe point and will do Hodl when I have a profit. Maybe different people will have different choices and of course Hodl is my choice at this time.

Conclusion

When we enter the crypto world, there are certainly risks that we will face. So we must be prepared with the risks that we will face. Because the crypto world is full of challenging challenges. When we are already in the crypto world, don't try to know more. We still have to learn and keep learning, because in crypto we can learn a lot.

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For that I invite other friends to be able to participate in the Challenge held by SteemitCryptoAcademy. I invite @liasteem, @ridwant, @abialfatih, @harferri, @husaini, @jufrimj, @afrizalbinalka, @ayijufridar, @zainalbakri, @sofian88, @musdezal and other friends. Thank you admin and community moderators for the time and opportunity given and thank you to SC01 and SC02 for their support so far.