CRYPTOCURRENCY CONTEST [S5/W6] || MY CRYPTOCURRENCY PORTFOLIO

I participated in the last contest here and I would be participating in this one too. I hope to get constructive reviews and valuable insights too. I would be going straight to the contest proper.

• Explain in your own words what a cryptocurrency portfolio is?

Cryptocurrency portfolio are variance in various accumulated assets, basically digital assets an investor owns and stores in his digital wallet.

Cryptocurrency portfolio can be the total worth of an investor calculated by the equivalence of the digital assets to a fiat currency. In other words, the net worth of an investor with regards to the worth of assets in his digital currency in relation to a fiat currency, say USDT

Cryptocurrency portfolio can be accumulated by various activities thus, working on a platform and getting rewarded in digital currencies, participating in video games and earning royalties in digital currency, just to mention but a few.

• Do you prefer diversified portfolio or a centralized portfolio. Explain each one?

I prefer a diversified portfolio to a concentrated portfolio. A diversified portfolio gives room for accumulation of various digital assets, also with regards to collateral damage in cases of decline in cryptocurrency asset worth. An asset in a diversified portfolio can augment for others. In cases of huge losses in asset value, another asset of same portfolio can stand in. Therefore, curtailing the collateral damage. This means there is a high risk to reward ratio here.

A Diversified Portfolio means the decisive accumulation of various cryptocurrency assets in a well defined cryptocurrency wallet. A diversified portfolio contains various assets in a wallet. It offers room for high rewards in relation to risk involved too as the value of assets appreciates.

A Centralized Portfolio is one that contains one particular token asset, all concentrated in a wallet. It poses a threat as a depreciation in assets value yields a concurrent loss or temporary loss to such investor. There is high tendency of loss and a slim chance for heavy profit margin.

scenario

^{The founder of FTX recently had the same plight as this. His networth over $16 billion dollars, just because of a singular drop in his project had his networth dragged to the mud. This proves the danger of a centralized portfolio}

• In your portfolio do you have any crypto asset in Hodl? Explain what is Hodl in cryptocurrencies?

^{screenshot from my binance}

I have little cryptocurrency assets in Hodl presently although, I just finished a spot trade few hours ago. To solve financial problems that came up. However, I still have little assets in Hodl in mine wallet.

Hodl means the storing of crypto assets in a well defined wallet for the sole purpose of making profits from the assets when they the assets rise. It's an instrument of trade used by cryptocurrency investors to store assets and make profits from asset which they hold.

Furthermore, you can also say it's a futuristic trading strategy which depends on the instruments of rise in the bullish trend of various assets as a prerequisite for traders to make profits from sales of their assets too.

• In your portfolio do you have some crypto assets in staking? Explain what is staking in cryptocurrency

^{screenshot from my binance}

I have a reasonable amount of Tron in my wallet, but I did not stake mine as seen, it is in Hodl presently and I hope I make profit from holding the token too. I have always thought staking to be a great cryptocurrency investment strategy but presently I did not stake my assets.

Staking in cryptocurrency means the process of delegating assets to a block chain network of a reputable project. Staking in cryptocurrency comes with various rewards. The reward margin is a function of the amount of assets staked. Someone staking high has a great possibility of earning higher rewards, incentives and royalties too. I look forward to staking mine assets too soon.

• Which do you prefer Hodl or Staking?

I prefer staking mine assets to holding them basically, because when assets are staked, there is a fixed reward which comes from staking your assets. This reward is based on the amount staked. So mine next move is to stake high for high profitability to be obtained. Mine opinion is valid for constructive criticism too.

Indepth knowledge into cryptocurrency portfolio and basic approaches to obtaining success in the cryptocurrency ecosystem is vital as investors always need avenue to gain profits when storing assets. I invite @starrchris @sahmie @icon-monday to join the contest.