How to build a crypto portfolio

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Well it's not always easy to build a cryptocurrency portfolio and often we make silly mistakes which cost us dearly so that is why it's really important are aware of the right and proper way to build a cryptocurrency portfolio.

The cryptocurrency market could be one nasty market when it wants to be and as such without proper knowledge on how to go about building a portfolio we might find ourselves making series of unwarranted mistakes or including scam coins in our portfolio or even exposing our wallets to risk of hacks because ignorance is a disease even more so in the financial market as ignorance here will teach you a lesson that will cost you before you even had the chance to amend your mistakes.

Here I will talk about some of the steps or guidelines or things one ought to do especially someone interested in building a solid cryptocurrency portfolio.

Necessary Guidelines/Steps To Building A Crypto Portfolio

Like I mentioned earlier ignorance will cost you in this market or space that's why we especially those desiring to build a cryptocurrency portfolio must take necessary steps to educate themselves properly because if they don't do that they will be at the mercy of the market.

When I talk about education what type of education, well for someone who is considerably new then the person must start first with the basic knowledge and first and foremost should first strive to understand what really is blockchain technology, the technology in which cryptocurrency is built, is really important to know this fundamental basic knowledge and they should also learn about cryptocurrency in general works yes it's important that they gain adept knowledge of the working principal of cryptocurrency in general.

Today educations are often provided also through many social media platform it's true that most times false information could be disseminated there too but you must be able to filter this as almost every project has their community on social media which makes interaction in this social media platform crucial to gain knowledge, basic knowledge about cryptocurrency and blockchain and a project in particular, so in all education is key in building a crypto portfolio.

Another helpful tip in building a crypto portfolio boils down to having goals, most times people invest just because they see others doing so, infact they don't know what they want, before investing you have have a plan like what do you wish to get out from this investment and is it safe to invest in and what amount would you be willing to lose in a particular asset and be fine if things goes south always take into consideration your risk appetite and if you are a person who is short sighted and want quick gains or someone who hodle and believe in long terms gains, these should be put into consideration by someone before deciding to build a crypto portfolio.

There is always a saying, "Don't put all your eggs in one basket." I believe that's incase all the eggs in that basket were to break now this applies to cryptocurrency as well it's important to have more asset you are interested in that you are willing to spread your assets across as this will help minimize the risks for you so that no matter how badly your loss is on one asset the others will have you stay afloat, it works both ways anyways but the general point is that spreading your funds across multiple strong project helps give your portfolio some stability than when you are invested in just one.

Now after doing all this now comes another important decision that of choosing the asset you want to be invested in, there are thousands of cryptocurrency on coinmarketcap and we still have new projects popping up like never seen before, it's always so during a bull run year that's why we have to meticulous in choosing wisely the coin you must invest in and that must be part of your portfolio.

When looking for coins to invest in always look at what is this coins utility, apart from being a digital currency what other use does it serve? Do they have an active community? This are some of the things that determine how good a project is and it's important to consider coins that are well established as we make our decision to build our portfolio, we have solid project today like Bitcoin, ethereum, Solana, Ton etc that you could possibly choose from amongst others and in times of instability in the market you should also know to save you asset in crypto stable coins as well to ensure your portfolio continues alive 😀 especially in long winter bear market.

Always do your own research, don't venture into an investment just because someone ask or adviced so, try to do research and look at how promising the coin is and the teams behind it if they are actively working for the progress of the project and what their roadmap is like and the volumes of the coins matters too, coinmarketcap provides this data as well as the market capitalization of a coin which is all too important and something you should never miss before investing in any coin.

So these are some of the things I believe it's worth considering and noting in your bid to build a crypto portfolio.

Conclusion

Ofcourse I feel we should always carry our own research and that's not so hard today as we have tools available that makes that all too easy so that there is never an excuse from our part so may we utilse the vast internet and sought for ways to better our financial life's through cryptocurrency by careful analysis also know that there is always an eventuality of things going south no matter how good our research and genuine a project seems.