What Is Money Management?

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Money management is an important thing to consider. It is basically a strategy to manage and control your assets. It is very helpful to increase your investment as it matters a lot. Money management covers these things such as investing, spending, budgeting, or saving. It also includes investment management and portfolio management too.

It actually does not matter whether you have a small or big capital for investment as everyone earns different and can able to take a small part from it for an investment.

sir @stream4u has rightly said. It is the management which plays an important role. Through the careful management one can become successful and achieve goals of life. Similarly if money management is done carefully here in the world of cryptocurrency and in trading assets then one can become successful.

If we do not have any plan and management in any field then we cannot do anything in that specific field. But sometimes luck supports you but it does not work all the time. Similarly if we do not have careful money management in trading then we can achieve nothing except loss.

Money Management Example

I want to explain money management with the help of an example so that i can clearly explain it.

Let suppose i have $50 investment which are currently present in my wallet. Now i want to invest these all the $50 but not in one cryptocurrency. I have to manage it and to divide this amount into parts to get some more profit. As everyone knows that profit is not definite but we should try for it.

CASE-I

• In the first case i can invest all the $50 in one cryptocurrency. Suppose i invest in the Litecoin my all the money ($50). Because i was thinking that litecoin will go up more than all the other cryptocurrencies and i will be able to get more profit.

• And i was right that litecoin went up and i was able to earn some profit. But this profit was not according to my expectations.

• As i invested all of my money in just one coin that there were also chances to loose all my investment because of bad money management. But it was my luck that i made some profit.

CASE-II

• Similarly my one friend also had $50 in his wallet and he also wanted to invest them and wanted to make profit from his investment. He did not do like me to invest all his money in one cryptocurrency.

• He divided his money into 4 parts ($12.5) and now he invested his money in different cryptocurrencies. He invested in Litecoin, Dogecoin, UNI, SWAP In this way he utilized his investment in four different coins.

• And when the market started all his money management proved to be successful and he made a handsome profit than me.

• Here we can also see this thing that as he invested in 4 different coins so there were no chances to loose all his money but in the first case in which i invested in only one coin, i could loose all the investment.
  
  

  From my this explanation i am sure that now everyone will be able to understand the Importance of Money Management. And we should always do careful money management.
  

My Future Plan About Money Management

I have learnt many new things about the money management after making bad profit and after hearing lecture of sir Stream4u. So now i am more careful about the money management to get something big and handsome.

Right now i do not have any investment or money in my wallet but i am thinking to invest. I am thinking to invest at least $100. so i have to do some money management planning. I will divide my this investment into 4 parts

• Part - I: 25% of my investment will be utilized for the live trading or margin trading. (For Different Coins)

• Part- II: 25% of my investment will be utilized for the spot trading. (For Some of My Favorite Coins)

• Part- III: 25% investment of mine i will retain for the Back up. If i need some more investment in the above categories then i will utilize this.

• Part- IV: 25% of my investment will be utilized to buy some newly launched coins. In this way i will participate in their airdrops and will get some share from the liquidity of the newly launched coins.
  
  

  I think in this way i can manage my money more accurately and get some more profit than usual investment and money management. My money management is not more strong. But i think this plan can help me a lot. As i am beginner so i am learning new things day by day.
  

Portfolio Management

Portfolio management is basically a collection of the some crypto assets in which you have invested or want to invest. Portfolio helps a lot in managing your investment at proper time. I am sorry to say that i did not have any single investment due to the beginning in the trading. So i do not have anything in my portfolio. But whenever i will invest i will share my portfolio with all of you dear fellows.

Future Plan on My Portfolio Management

As i have mentioned it that i am a newcomer in the trading. But such lectures and homeworks are building interest in me to join the trading world. As there is a need of careful management so it will take time for me to understand each and everything.

My Portfolio Will Be: Being a beginner i will work with almost 5 coins. As i have explained it already that i will divide my all investment in equal 4 parts and then i will trade with them and i hope my portfolio will be amazing. 5 crypto coins you will see in my portfolio are given below:

• BNB (Binance Coin)
• UNI (Uniswap Coin)
• SWAP (TrustSwap)
• 1INCH ( 1inch Exchange Coin)
• ETH (Ethereume)

These coins will be in my portfolio and i will trade on them. But according to the some conditions and market fluctuation this list can be changed.

Conclusion

In conclusion i will say that money management is very important to make more profit and portfolio management is another important thing which plays a vital role in the right investment and trading. If anyone want to become successful in the investment and trading, then one should carefully manage the portfolio and investment.

This is all about the money management and portfolio management. I have tried to explain everything with the help of examples. so that anyone can understand money management and portfolio management easily.

My Humble Request to @steemcurator02

As i know that steemit team is doing very well in rewarding the Steemit Crypto Academy Posts. But i want to mention here that most of the are users who are getting upvotes but some of the users are not getting upvotes even their posts have been checked by the professors.

Similarly My Post Was Checked By Professor @stream4u with Rating 6 but i did not get upvote .

My Post Link: Crypto Academy Week 6 - Homework Post for [@stream4u] Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

If is it possible then please give me my reward on my other live post as it urges me to write more in the Steemit Crypto Academy and it is my power to be active in the steemit. Otherwise i am happy. But i am very hopeful that steemit team will reward me as steemit team is very caring and loving.