Steemit Crypto Academy Contest / S5W6 - My cryptocurrency portfolio
Namaste 🙏 to all of you. My name is Lavanya, and I am a housewife from India.
This is my entry post for the ongoing contest My cryptocurrency portfolio
by #SteemitCryptoAcademy community.
Without proper portfolio management, we cannot earn good returns on the crypto market. I am really happy to bring up this topic for this week's contest needs.
Thank you, professors and team, for conducting a contest regarding this topic.
I have nearly 15 months of experience in crypto trading portfolio management; in my today's post, I share my experience with you.
Explain in your own words what a cryptocurrency portfolio is. |
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A cryptocurrency portfolio is a collection of all the cryptocurrencies that an individual or organisation owns. It usually contains a variety of different types of cryptocurrencies, each of which may be held for different reasons.
For example, someone might have a portfolio that includes Bitcoin, Ethereum, Litecoin, and many more.
The purpose of having a cryptocurrency portfolio is to diversify one's holdings and to potentially profit from the growth of the overall market.
By owning a variety of different types of cryptocurrencies, an individual can hedge their bets and minimise their risk.
For example, if Bitcoin were to suddenly drop in value, the other cryptocurrencies in the portfolio might offset some of the losses.
Cryptocurrency portfolios can be created in a number of different ways.
The most common method is to simply buy a variety of different cryptocurrencies and store them in a digital wallet.
Some people also create portfolios by using cryptocurrency exchanges, which allow users to trade one cryptocurrency for another.
There are also a number of different software programmes that can be used to manage cryptocurrency portfolios.
Creating and managing a cryptocurrency portfolio can be a complex and time-consuming process also need proper research before investing.
However, it can also be very rewarding, particularly if the market grows and the value of the portfolio increases.
So choose the top 100 coins in your portfolio. Because if the market dumps 5%, it will go down 5 to 10%, not more.
But if you invest in shitcoins, those will dump upto 50% to 60%, so do proper research before investing.
Do you prefer a diversified or concentrated portfolio? Explain each |
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Most investors will have a preference for either a diversified or concentrated portfolio.
Each has its own advantages and disadvantages, so it's important to understand both before making a decision.
A diversified portfolio is one that contains a variety of different investments. This gives the investor more exposure to different types of assets and can help reduce risk.
The downside is that a diversified portfolio may not perform as well as a concentrated one in a strong market.
A concentrated portfolio is one that contains a smaller number of investments.
This allows the investor to put more money into each investment and can potentially lead to higher returns.
However, a concentrated portfolio is also more risky, as the investor is more exposed to the performance of a small number of assets.
The best portfolio for an investor depends on their individual circumstances and goals.
Some investors may prefer the diversification of a diversified portfolio, while others may be willing to accept the higher risk of a concentrated portfolio in order to achieve higher returns.
The important thing is to understand the pros and cons of each approach before making a decision.
A diversified portfolio in the cryptocurrency market is one of the smartest and most effective ways to mitigate risk and maximise returns.
By investing in a variety of different digital assets, you can spread your risk across a number of different factors and increase your chances of seeing a positive return on your investment.
One of the key benefits of diversifying your portfolio is that it can help protect you from the volatile nature of the cryptocurrency market.
By investing in a range of different assets, you can reduce your exposure to any one particular coin or token. This is especially important given the large swings in value that are often seen in the crypto market.
Another benefit of having a diversified portfolio is that it can help you take advantage of the different growth rates seen in different digital assets.
By investing in a mix of different coins and tokens, you can maximise your chances of seeing a return on your investment as the market grows.
So, if you're looking to invest in the cryptocurrency market, then a diversified portfolio is one of the smartest and most effective ways to do it.
By spreading your risk across a number of different assets, you can maximise your chances of seeing a positive return on your investment.
When it comes to investing in the cryptocurrency market, some investors choose to focus their portfolio on a small number of coins. This strategy is known as a concentrated portfolio. This type of portfolio has a number of benefits along with risks.
For one, a concentrated portfolio is easier to manage than a diversified one. This is because you only have to keep track of a few coins, rather than dozens or even hundreds.
Additionally, a concentrated portfolio allows you to really get to know the coins you're invested in. This can give you a better understanding of their potential and help you make more informed investment decisions.Of course, a concentrated portfolio also comes with some risks.
Because you're putting all your eggs in a few baskets, any negative news or price movements can have a big impact on your portfolio.
Additionally, if one of your coins fails, your entire investment could be lost.
Still, a concentrated portfolio can be a good option for investors who are willing to take on a bit more risk in exchange for the potential for higher returns.
If you're thinking about pursuing this strategy, just be sure to do your research and understand the risks involved.
When it comes to me, I always go for a Diversified portfolio. because I know the risk of a concentrated portfolio.
There are a few key things to consider when deciding whether a diversified or concentrated portfolio is right for you.
- The first is your investment goals.
If you're aiming for long-term growth, a diversified portfolio may be the better choice, as it will provide you with exposure to a variety of asset classes and allow you to weather market volatility.
On the other hand, if you're looking for short-term gains, a concentrated portfolio may be a better fit, as it can provide you with the potential for higher returns.
- Another key factor to consider is your Risk Tolerance.
A diversified portfolio is typically less risky than a concentrated one, as it provides you with more diversification and therefore more protection against downside risk.
However, if you're willing to take on more risk in pursuit of higher returns, a concentrated portfolio may be the right choice for you.
- Finally, you'll need to think about your Time horizon
If you have a long time horizon, you may be able to afford to take on more risk in pursuit of higher returns.
However, if you have a shorter time horizon, you may want to stick with a diversified portfolio in order to avoid market volatility.
No matter which type of portfolio you choose, be sure to rebalance on a regular basis to ensure that your asset allocation stays in line with your goals and risk tolerance.
So by keeping all those in mind, you can decide what type of portfolio is suitable for you.For me, I always go with a Diversified portfolio.
In your portfolio, do you have any crypto assets in Hodl? Explain what a "holder" is in cryptocurrencies. |
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Yes, I have a lot of coins in my wallets, but those are small in amount.
Some are in exchange wallets, some are in decentralised wallets like Metamask, Trust, and Zerion.
I bought them six months ago, but now I am at loss, so I am trying to do DCA in the present market.
I invest in the Top 100 projects, so there are no issues; it doesn't go to zero and again reach its previous price; that's why I hold those with patience.
In my portfolio, I have Dot, Trx, STEEM, Bit, Algo,Matic, ETH, BNB, Cake, Bake, Neo, and many more.
Which coins are available for staking, those I stake, some doing DCA.
Not only those, but some other small-cap coins like matter, xcad, Zil, block, and shill also have them.
I don't put all my eggs in one basket; I always try to diversify according to market conditions. It's always helpful when markets go in any direction.
For example, if I invest my money in FTT and Luna, what's my position now? My portfolio becomes zero.
Those coins also I invest my money when rumours start I exit from those by accepting some loss.
But due to other investments, I still surviving here. Otherwise, my portfolio becomes zero.
A holder is a person who owns cryptocurrency but does not actively trade.
The word "holder" can also be used to describe those people with digital reserves of cryptocurrency.
Holders do not make trades and instead hold their digital assets for the long term, which means they will not sell their coins or tokens in the short term.
It gives better returns than trading. Because in the long run, we may expect multiple X returns. Those are not possible to get on daily trading.
For example, if you invested in the $TWT token at a price of 0.002 around 2020, now that coin is trading at more than $2.2+,
you can imagine how much return you will get. It's around 81813 times, which means your $10 turned into $81813.
That's many returns, we only see in holding. But for holding needs, you need to choose the correct project; otherwise, we may lose everything.
Along with when it gives 1 to 2X profit, always book some profit, remaining hold for the long run. This strategy always helps reduce our risk in a bear market.
For example, If you invest $10 on luna at the price of $1, it hit its all-time high around $18+, Here you need to book some profit because it gives 18 x profit, remaining some keep for the long run.
If you don't book, still keeping those in your wallet, we don't get any because it again reaches your buy price. If you book now, nothing you get.
In my opinion, the Crypto market always gives 1 to 2 chances to book our profit, if you don't utilize it then we cont survive here. It's my personal experience, Because I invest some money in one project it gives up to 3 X profit, but I don't book on that time due to greedy ness. Now that the project dump to -70% , now thinking to exit from it with a loss.
That's why I suggest to all investors, booking our profit also plays a big role to survive in the crypto market. Picking strong project for your investment needs also play a big role in maximizing our returns.
In my opinion, holders get better returns than daily traders.
In your portfolio, you have any crypto assets that you are at stake. Explain what "staking" means in the crypto space. |
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Yes, I stake some of my assets for long-term needs.
I pick some projects for long-term holding needs; those investments I always stake if they are available.
Some projects don't have staking facilities; those I hold in my wallet.
Holding an asset for the long term means, here, we need to hold it for 2 to 5 years; on holding it in our wallet, we don't get any additional earnings; if you stake those, we get some extra earnings on it.
By holding itself, we may get some extra returns here. That's why I always try to stake my assets for long-term holding needs.
For staking some times, I use Exchange wallets; for other needs, I use other platforms.
Based on my comfort and strategy, I chose my staking option.
Dot staking needs using Binance
I think the polkadot project is well-known to everyone.
Because it is trending at the 11th rank on coinmarketcap with $266,348,631 in volume. But it is taking a huge amount of time to show its strength.
In my opinion, it will perform well in the coming days, which is why I plan to invest some here and stake in Binance for my long-term needs.
On Binance, we get around 1.58% to 103.94% API on Dot. Based on your wishes, you may choose which you need.
I don't want any risky investments, which is why I avoid dual investments. I am also seeking long-term returns, which is why I go with the locked-in staking option. Because here I get a fixed API on my staking.
Here, based on duration, we may get different APIs.
Because we stack our assets for a long time, we get good API. If you choose a shorter period, you will get less API.
At present, Binance offers the following periods with respective APIs for locked staking of DOT.
| PERIOD | APY |
|---|---|
| 120 Days | 21.79% |
| 90 Days | 14.1% |
| 60 Days | 12.79% |
| 30 Days | 11.59% |
That's why I choose 120 days at 21.79% API for my dot-staking needs.
Those details you may see here
Here is one more facility we have; here you may redeem your assets at any time before the locking period ends too, but those you receive after 24 hours only.
Just holding our assets in our wallets doesn't generate any returns, but from staking, we may get some, so always try to utilize staking facilities on trusted platforms.
Some Dex platforms offer good APIs, but those are high-risk platforms. So do proper research before staking your assets on Dex. Always choose popular and trusted platforms.
Stake cake on the pancake swap
I try to diversify my investments across different platforms. That's why I chose the pancake swap for staking my $cake investment.
Here it offers auto-investment for 52 weeks with a 20.95X yield boost.
That means when we get cake rewards, those rewards again add to the stake pool, and from this, our earnings also increase.
That's why I chose this option for my $ cake-staking needs.
Those details may be seen here.
Not only those similar I staked $trx on the Tron wallet, $near on the Near wallet, $kai on the Kai wallet, and many more based on my portfolio and investment needs.
Note: Here, I am not a financial advisor, so don't follow my investments and staking strategy. Always do your own research before investing.
Besides those, Steem is my biggest investment. About 15 months ago, I bought 12,000 worth of Steem coins from the open market, which I then transferred to my wallet.
Those 12k turn into 39k around now. Using that power, I start building my reputation and rank here.
I am so glad to see my investment in Steem. I knew it was an upcoming feature, so I didn't give up on seeing the market crash. It's one of my long-term investments too.
If I don't move my $steem coins into my Steem account and hold on exchange wallet itself, I don't get any from holding there.
That's why I suggest trying to grab all available staking options for your holding assets on the market. Go for risk-free platforms for its needs.
Staking means, locking your assets for obtaining rewards for them from holding themselves. Also, it shows your support for that project.
When you stake your coins, you are essentially locking them up for a set period of time in order to earn interest on them. The longer you stake your coins, the more interest you will earn.
In order to stake your coins, you will need to set up a staking wallet. There are a few different types of staking wallets, but the most popular ones are the official wallets for the coin you are staking.
Once you have set up your staking wallet, you will need to send your coins to the wallet address.
Once your coins are in the staking wallet, they will begin to earn interest.
The amount of interest you earn will depend on the coin you are staking and the length of time you stake your coins.
Cryptocurrencies offer many benefits over traditional fiat currencies, including lower transaction fees, faster transaction times, and increased security.
One of the lesser-known benefits of cryptocurrencies is that they can be staking, to earn interest.
Staking is the process of holding funds in a cryptocurrency wallet to support the security and functionality of a blockchain network.
When users stake their coins, they are essentially locking up their funds and agreeing to help maintain the network by validating transactions and participating in governance. In return for their services, investors earn rewards in the form of interest payments.
The interest rates offered on staked coins can vary depending on the currency, but they are typically much higher than what is offered on traditional fiat investments, such as savings accounts.
For example, the annual interest rate on the popular cryptocurrency Ethereum (ETH) is currently around 5%.
This means that if you were to stake $1,000 worth of ETH, you could earn $50 in interest after one year.
While staking can be a great way to earn passive income, it is important to remember that you are still putting your funds at risk.
The value of cryptocurrencies can fluctuate wildly, and there is always the possibility that you could lose your entire investment.
Therefore, it is important to only stake what you can afford to lose.
Which do you prefer: hodling or staking? |
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There are two primary ways to earn cryptocurrency: hodling and staking.
Both have their own pros and cons, so it's important to understand the difference between the two before making a decision.
Hodling is the process of buying and holding cryptocurrency for a long-term investment. The goal is to buy low and sell high or to hold the coins until they reach a much higher value.
This strategy can be risky, as the value of cryptocurrencies is highly volatile. However, it can also be incredibly rewarding if the value of the coins increases significantly.
Staking is the process of holding cryptocurrency in a wallet to support the network.
This requires locking up your coins for a set period of time, but in return, you earn interest on your coins.
The amount of returns you earn depends on the amount of coins you stake and the length of time frame you stake them for.
So, which is better? Hodling or staking?
The answer depends on your individual goals and risk tolerance.
If you're looking for a long-term investment and are willing to take on some risk, hodling may be the better option for you.
However, if you're looking for a more passive way to earn interest on your coins, staking may be a better option.
Both hodling and staking have the potential to be profitable, so it's important to do your own research and choose the option that's right for you.
When it comes to me, I go for staking, but it must be flexible, not locked. From this option, I will unstake when I wish to sell those. But if I go fixed-locking, there is no way to unstake those when we require it.
Which I prefer to hold for the long term by accepting risk, I go for fixed locking. Remaining, I go for flexible locking.
Based on my plan, I choose which is suitable for me.
Conclusion |
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For good returns on our investments, we need proper portfolio management. Some times we must take risks to earn more returns.
If you wish to invest for long-term needs, go for flexible staking. It gives some returns. But before choosing a project for investment, one must do proper research.
Otherwise, you lose your hard-earned money here.
I would like to invite my friends to participate in this contest: @ternuritajessi, @zulhendra, @msdbitco, @shohana1, @simonnwigwe, @chiabertrand, @nevlu123, and @harferri.
Thank you so much for reading my post!
Excellent content my friend. We really must be warned when buying cryptocurrencies. Study what are the risks and benefits that each one of them brings us and choose the ones that best suit us after a thorough study. We must be prepared because cryocurrencies always tend to go down a lot but it is gratifying when they are on the rise and our investment also goes up.
Thank you very much for sharing such an excellent publication.
God bless you 🙏
Thanks for valuable feedback dear.
Thank you friend for your valuable content.
Blessed day 🙏☀️
Upvoted! Thank you for supporting witness @jswit.
Happy to see your portfolio, i also saving some coin in my binance, thanks for the sharing..
Thank you my friend
You are most welcome my dear friend.
OMG its so big! Very impressive crypto portfolio you have dear. You are a crypto queen! Wish you more success!
I am not a queen,i lost huge what earn here.
From this slowly learning lessons from my mistakes.
Hope those holding recover my loss.
Thanks for compliment dear.
Hold tight these assets and wait for the bull market. Good luck dear!
Hope for best.
It seems that you are an expert of the cryptocurrency. I wish you all the best.
Thanks for the compliment but i am just a learner,having lot of failure stories my friend.
I also have a portfolio in Sri Lanka Stock Market, but like you I also had to face lot of failures. Nothing to do. That the nature. Due to the global crisis and high implication value of all the currencies go down. Hope we can enjoy big in future.
Thats great you invest in stocks too.
Agree due to global crisis we cont do any,hope soon we get good rally,then we book our profits.
Yes, that also my point. Let us see.
Even with a small amount of price you have a lot of coins in Hodl. Of course that will allow one of the coins you have to increase in price. Even if all the coins you have go up in price, then you will get a big profit. I also shared a post about cryptocurrency portfolios, if you have time please take a look and I'm very happy.
Yes,thats why i always try to hold different assets with small investment.
Thank you very much for leaving valuable comment on my publication.
I totally agree with you, the strategy we choose for our portfolio will depend on our individual objectives and risk tolerance. Excellent participation
Thank you my friend.
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