Steemit Crypto Academy Contest / S5W6 - My Cryptocurrency Portfolio

Hello everybody.

Welcome to this post. I hope that all of you will be good and happy and enjoying your precious health with the grace and blessings of Almighty Allah. Today, I am going to be a part of the week 6 contest of the SteemitCryptoAcademy and the topic for discussion is My Cryptocurrency Portfolio. So, let's start the discussion without any wastage of time.

_{Image Created By Canva}

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Cryptocurrency Portfolio can easily and simply defined as the collection of different crypto assets that a user have at a particular time is called as the Cryptocurrency Portfolio. The cryptocurrency assets are not just like the real world assets that can be stored or placed at some physical sites or stores.

Crypto assets are the digital currency that can be stored in the decentralized or centralized crypto exchanges or on the hot or cold wallets. The collection of all the crypto assets that a user own at a particular time period are actually the Cryptocurrency Portfolio of that user.

There are different crypto traders that have different type of crypto assets in different exchanges or wallets, in that case, all of these assets are collectively the Crypto Portfolio. In other words, we can simply define the portfolio as the division of the capital of a users in different crypto assets.

The crypto market is so much volatile and risky thay we have to be very careful while investing in the market. A good trader always have a very good portfolio that help him to manage his assets timely to avoid the loses and manage good returns from the crypto coins that they own.

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As we all know that the market of cryptocurrency is so much volatile and unpredictable in nature that we can never assume the next move exactly. We can only predict the things that could be happen according to the past signals. So, in this type of volatile market, we must have to be very careful while maintaining our portfolio.

Depending on the type and species of tokens that are present in a Portfolio, there are actually two types of portfolio. The major and the mostly seen type of the portfolio is that in which the traders just buy a few coins that they have listened about. They do not focus on the other diversity of assets, instead of a few ones.

Such type of portfolio in which the traders just have held some amount of a few trending assets in the crypto space is called as the Concentrated Portfolio. As the word concentrated shows that they are the portfolio in which the traders have invested in a few coins with good capitals that are actually concentrated in nature.

On the other hand, the diversified portfolio are such type of portfolio in which their is a good variety of tokens that are of the interest of the investors. In these portfolio, the traders have divided their total capitals among various major and altcoins. These type of portfolio are mostly managed by the well experienced traders.

In my views, the diversified portfolio are more advantageous and beneficial than the concentrated portfolio. There are several reasons behind it. One of the major reason that the diversified portfolio allow the users to enjoy the more chances of good overall returns as compared to the concentrated portfolio.

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My answer to this question is Yes, I have different crypto assets in HODL. Holders are actually the traders that buy or purchase a cryptocurrency asset at a lower price and then wait for its high or bull movement to make good profit from him waiting. Holders are actually those investors that invest in a token or coin for a long time to make a reasonable profit from it. Have a look at my Binance Portfolio.

_{Screenshot of My Binance Wallet}

In the above screenshot, you can see that I have currently invested my capitals in four different coins like STEEM, LEVER, LINKUP, and SHIB. The most of the capitals are invested in STEEM token. I have bought it when it was its current lower (bear) level and I have decided to hold these tokens for a long time so that I could be able to make reasonable profit.

As I have already stated that I would like to prefer the diversified portfolio over the concentrated one because of the high chances of overall profit in the investments that are made in a good variety of coins. I have decided to hold a these coins at least for a time where I will get a satisfied amount of return from them.

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Staking is a type of investment in which the investors are rewarded with the particular amount of APR percentages by locking the assets in the crypto pools. The locked assets are actually added to the pools to provide liquidity to them that can ease the process of progress of transactions in the network.

The investors or stakeholders are rewarded by providing liquidity to the pool in the form of the same tokens which they have locked. The staling of the crypto assets can be done for a very long time or a short time but mostly it is much lower than the time period oc holding the crypto assets. Have a look at my TRX and STEEM staking.

_{TRX Staking - Screenshot From Tronlink}

In the above screenshot, you can see that I have staked about 735 TRX and in return, I got the bandwidth and power that can be used for CR voting. In this process, we can earn good APR over this staking. These locked assets cannot be used for emergency for at least 78 hours.

_{Staking of STEEM - Screenshot From My Steemit Wallet}

In the above screenshot, you can see that I have locked 5945 STEEM in the form of Steem Power (SP) that can be called as the staked amount of STEEM. This SP can be used for the curation purposes on the platform and I can earn good curation rewards in return. So, this is my STEEM staking.

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I hope that all of you will be well awared of the difference between the HODL and Staking of cryptocurrency. I will more elaborate them within some important points.

• The time period for the investment in the form of holding is higher than that of the staking. Usually, the staking refers to the locking if assets for days of months. While, holding could be for years or even multiples.

• Holding is much better than staking in the regard that we can take advantages of the highly volatile market timely that cannot be done in the term of staking.

• The staked tokens are actually locked up and we cannot exchange or trade them with other tokens. While, the case is exactly different in the holding. So, holding is better than staking with this respect as well.

• The holding doesn't increase the number of tokens while the staking does. The APR rewards that are given to the investors are actually in the form of the same assets that are staked.

• Holding can be done in the hot or cold wallets both. While, the staking must need hot wallets for their progress.

From the above points, I will shortly conclude that the Holding is much better than staking. The best reason for this statement is that the hodl assets are easily available for emergency needs, we can trade or exchange them for timely market decisions, they are more secure as they could be held in the hardware or cold wallets as well.

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The division of the available capitals among different tokens or coins for investment is actually called as the Cryptocurrency Portfolio. Crypto Portfolio could be of two different types. The concentrated portfolio are those in which there is less diversity of assets in the wallet while the diversified are those which contain a large variety of assets.

Holding refers to a process in which the investors buy the crypto assets at the lower prices, hold the for the favourable movements of the market and then take good profit when market is in satisfied state. While on the other hand, staking can refer to the locking up of assets for earning goof APR rewards in return.

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I would like to invite my friends @minikay, @growwithme and @chant to take part in this beautiful contest.

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