Remember that no matter how confident you are in your technical knowledge or even how well versed you are in finance terms, there is always something new to learn about cryptocurrency each day. This guide will help you take the first steps towards managing your portfolio and becoming a full-fledged cryptocurrency investor. As an added bonus I have included five strategies for diversifying your portfolio beyond just coins. ...................................
Bitcoin, Ethereum, Ripple,Bitcoin and many more, it can be easy to get lost in the world of cryptocurrencies. For cryptocurrency newcomers and experienced investors alike, managing a diverse portfolio is fraught with many questions. This guide will help you get started with a strategy for dealing with major cryptocurrencies that make up most of the market cap. Managing your own personal crypto portfolio can feel exhausting at first so I have compiled some tips to help you avoid common mistakes new investors make and have learned from our past experiences as beginners ourselves in this wild crypto land.
Here are the some investment tips to build a good portfolio:
Don’t put in more than you can afford to lose.
This is the most important piece of advice we can give you when managing your portfolio. Don’t put in more than you are willing to lose, because in cryptocurrency there is always a chance that a coin will tank overnight and you could be left with nothing. You need to have an iron will and stand firm in times of high volatility. When the markets are down, stay calm and don’t panic sell!
Keep your coins off exchanges if at all possible.
Many exchanges have proven themselves to be an easy target for hackers. We always recommend keeping your coins off exchanges and in your possession until you are ready to trade them for other coins or fiat currency.
Diversifying your holding
Don’t put all of your eggs in one basket! Most investors tend to go all in on their favourite coin, but in our experience this strategy always leads to losses. Keep a healthy mix of coins by holding some small amounts of different coins you find interesting in order to mitigate risk and hedge against the possibility that one coin may fail or lose a big portion of its value compared to the others.
Don’t fall for hype
It’s easy to get caught up in the hype that surrounds some coins and make decisions based on emotion rather than logic. This is almost always a bad idea! Remember, cryptocurrency is often very thinly traded, there is often a single large holder of a specific coin or group of holders who are manipulating the price up or down. Be sure to do your own research and don’t get caught up in the emotion of the moment. We recommend checking the coin market cap to see what others are paying for a coin before you make any decisions.
Track Your Portfolio
Crypto is a very volatile holding, so you should always track your portfolio to look for the profit and loss statement. Binocs is the best way to track crypto portfolio. It is a reliable and trusted service on which you can rely on.