How to create an crypto portfolio.
A crypto portfolio is important for investors. You want your portfolio to be safe but also to be able to make a lot of profit. We are happy to help you put together your portfolio. In this blog we will discuss how I create a safe portfolio that can make a lot of profit. It consists of several parts. There are also different crypto currencies. We cover what kind of altcoins you need and how to make the right distribution.
At the end of this blog you can also participate in a Bitcoin giveaway.
What is a cryptocurrency portfolio?
A crypto portfolio is nothing more than several crypto coins in your wallet. A portfolio is not important for traders. Investors always have these. There are different types of portfolios. There are portfolios with a high risk that can yield a lot, but also portfolios that are safe. A crypto portfolio consists of different parts and you hold it for a long term. Some people hold onto it for decades and some plan to sell it soon.
Different portfolios for crypto.
There are 2 types of crypto currencies. Bitcoin is a currency, but the rest are altcoins. Ethereum is also an altcoin. There are many types of altcoins. Some have High Risk High Reward and some are a bit safer.
If you look at the market cap and filter from top to bottom, Bitcoin is at the top. That is not an altcoin, but the rest of what is under it is. The higher the volume the less risk it has but also the less return it can make if it will rise. If you have a high risk crypto currency, it is far below with a low volume. This means that the price can go up more easily as it gets bigger.
High Risk crypto currency portfolios.
And a high-risk portfolio usually consists of new crypto coins. These new crypto currencies have a high risk because almost all new altcoins do not grow big. But when they get big they can rise a lot.
Sometimes the new crypto currency can rise as much as 10000%. But usually that is not the case. The people who put these kinds of coins in their wallets hope that they will break out. And earn so much money.
A good distribution is not possible with these portfolios because it is all a gamble. A crypto currency such as Bitcoin is a safe investment. But that you are going to make a 10x on a Bitcoin is more difficult because the volume is too high for that. Then there should be 10x more volume. With a High Risk coin, it can happen very quickly if it becomes a popular coin.
Low Risk crypto portfolio.
A low-risk portfolio is made by traders and investors who have or want to create a serious portfolio. There is also not much money with a High Risk. A low-risk portfolio has more money and a proper allocation. For example, it is usually divided into percentages.
An example of a low risk portfolio is: Bitcoin 55%, Ethereum 25%, 5% XRP, 5% BNB and Sometimes 5% is chosen for a high risk crypto currency. This is not financial advice, but this is what the distribution looks like. Every investor has different goals and that is why every trader has their own composite portfolio.
If you have a high risk crypto currency, it is far below with a low volume. This means that the price can go up more easily as it gets bigger. Imagine the cryptocurrency has $100,000 in volume and it goes to $1,000,000 and you have doubled your money 10 times. With a crypto currency with lower risk, much more money will be needed, so your chance is small
Most used altcoins in portfolio.
There are many crypto coins that you can buy and sell. They all have something unique. But the biggest altcoins are the most common. That's not surprising because that means that the higher the volume, the more people have it. Bitcoin is not an altcoin but Bitcoin will always remain the biggest.
1. Ethereum (ETH), 2. Binance Coin (BNB), 3. XRP (XRP), 4. Cardano (ADA) and 5. Solana (SOL).
So these were the 5 crypto coins with the highest volume at the moment. There were also stable coins with a high volume such as Thether (USDT). We do not count those because they are not bought for profit. Other altcoins are bought with these coins.
What does a good crypto portfolio look like?
A good crypto portfolio for a lot of profit and little risk consists of a good distribution of your money over several currencies. Everyone has their own goals and requirements. That is why we can give you the best tips for a good distribution.
Make a plan for what you want. Do you want to take a lot of risk and hope for a high return? Then it is useful to look at no known crypto currencies. If you want to be a serious investor and have more money to bet, you can go the safe way. Investing is always a risk. But for a safe portfolio you want to distribute your risk and make up for losing coins with profitable coins in the portfolio.
That's also why your portfolio is created. Below is an example in a circle of a crypto portfolio. There are not many coins in this. But you can add more that also takes away a bit of risk.
Why is it important to have multiple cryptocurrencies?
You want to have many types of crypto coins in your wallet. You do that before the profitable coins can make up for the losing trades. The more coins you have, the greater the chance that your losing trades will be made right. That's the first reason.
But a large supply can also lead to higher returns.
Suppose you have several coins and you have chosen to put a little bit for high risk cryptos. And it will rise a lot in a bull run, you have made a lot of returns. That cannot be guaranteed, but by adding a lot of crypto coins it can provide a lot of return.
If you have too little, your portfolio is not strong for setbacks. Nor is it meant to have too much. If you have 12 crypto coins, you have a good portfolio that the average trader and investor has.
Bitcoin in your portfolio.
Every trader has Bitcoin in their portfolio. Bitcoin is not an altcoin. But it does have a low risk. Everyone has Bitcoin because it simply cannot be missed in your portfolio. Bitcoin has taken care of all crypto coins and that is why you should always have it. Bitcoin is also the largest part of your portfolio. Provesional traders and investors often have more than half of their portfolio filled with Bitcoins. Therefore, always make sure that you have Bitcoin in it and that this coin is the largest in your portfolio.
Low Risk altcoins to portfolio.
Besides Bitcoin, the rest is altcoin. The rest of a portfolio is filled with low-risk altcoins. An example of a low-risk altcoin is Ethereum. The higher the volume, the less risk it has. Ethereum is also the largest altcoin and will remain so for the time being.
If you are going to filter on the coin market cap, then the low risk altcoins are at the top.
These are examples of low risk altcoins
High risk altcoins to portfolio.
It is a choice to also add high risk coins. These are basically gambling crypto currencies because there is no reason to invest in them. These coins are also on the coin market cap and if you look at the bottom from the 70th you will see all unknown altcoins. These can also fall and rise a lot in a short time. It is not wise to add this because there is a good chance that you will lose. But if you are going to add these crypto currencies, make sure that they are only a very small amount. This is not appropriate for a portfolio with a low risk with a high return.
A good crypto exchange for altcoin portfolio.
It is also important to have a good exchange to keep your wallet. It is important to secure it properly. Saving on a Ledger is also an option. Click here to read how to have a secure wallet and how to get it.
If you do not use an external wallet, we recommend using Bybit to store your crypto coins there. That has several reasons. If you want to start trading, this is the best because it does not cost much but it is also useful for investors. Below are a few important points why this is the best exchange.
You can participate in giveaways.
If you create an account through intertradeclub you can have a chance to win 1500$ in Bitcoin from intertradeclub every month for the rest of your life. A new winner is chosen every month. Bybit itself sometimes also holds giveaways for customers. Click here to create an account.
Low trading costs
Bybit does not have high fees. Fees are the costs you pay when buying crypto currencies. You want a cheap exchange because you get more cypto for the same money.
Easy to use.
Bybit is suitable for traders and has many tools. For investors who want to create a crpyto portfolio, this can easily be done on Bybit. Bybit has a lot of crypto coins that are all for sale. In your spot wallet you have a clear overview of the profit and loss of all coins and also your average profit on all your coins.
Do you want to trade with Bybit or create a portfolio? Click on the Bybit logo below or click here to create an account. You automatically participate every month. Also at the bottom of the page is a green button where you can read more about giveaways.
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