Managing Your Crypto Portfolio

It is often realised that due to how volatile the world of cryptocurrency is, it has become a necessity that managing a crypto portfolio effectively is needed either for both the new or the old investors. The rapid market fluctuation actually requires us managing our risk effectively and today I will be talking about some basic ways we can put in place to manage our portfolio.

The first I will definitely like to talk about is definitely diversification. This is the major cornerstone that brings a very established crypto portfolio. What does it actually mean, that includes you actually spreading your Investments across the various crypto instead of you just focusing on only one assets. Lack of diversification is what I have come to discover that a whole lot of us in the crypto make. We just centered on only one assets which is very risky. We need to invest in a wide range of coins that are quite effective.

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The second part I will definitely like to talk about which many of us are not really talking about is the aspect of making a thorough research as that will help you to be able to identify projects that are scam or the ones that are actually legit. They are quite a whole lot of things to put into consideration when it comes to that and that involves their white papers,their market demands and even their overall vision for the projects. Paying attention to these will help minimise the rate at which we fall to the trap of scam projects.

The third point which I have come to discover that many of us did not pay attention to is what I called the risk management factor. When you really have investment goals that have been set, it will help to prevent your potential losses and this will go a long way in how you manage your portfolio. Most especially using what I called the stop loss also can go a long way in helping you to manage your risk beyond what you can ever imagine.

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When it comes to investment, we need to understand that there are what I called the long term investment and the short term investment. Balancing both will definitely go along way in helping you to enhance your portfolio performance. Long term investment like bitcoin and Ethereum while short term investment like the altcoins that can help you with quick returns but at the same time you need to be very careful also. Very careful.

The last one I will definitely talk about is putting in place the needed security measures in place because in as much as you put your portfolio structure in place, you need to secure your crypto assets. There are several means you can definitely do that ranging from making use of hardware wallets or enabling 2FA across all your exchanges accounts. This will help to protect your portfolio from scams.