Trade on your opinions
We have been following the Crypto markets for quite sometime. After talking to a lot of investors we figured out some tips for you that will help you make a great portfolio. Lets look at them –
Pick a few projects to start out with including a mix of assets that have had long-term success like Bitcoin and Ethereum and some lesser-known coins that have big upside to multiply their value in the short term. You can find many such small cap altcoin options on exchanges like Kucoin.
Diversify and diversify some more
While there are many different opinions about the right amount of coins to hold in your portfolio, it seems incredibly foolish to tie up 100 percent of your holdings in a single token. Diversifying your portfolio not only limits your exposure to significant risk if your chosen coin tanks, but also allows you to invest in coins with different types of use cases.
Rely on your findings
One of the most critical tips to take to heart is to always perform some due diligence before sinking any of your hard-earned money into just any project. Please do not pick a coin because it has a cute mascot, is a favourite of a Youtube “expert”, or even because I recommend it. Instead pick a coin because you have conviction in the totality of the project.
With the abundance of information available on the Internet today, it’s never been easier to do your own research and develop the criteria that provides you a level of comfort with your picks.
Risk is part of the game
Cryptos can often be a roller coaster ride with wild and volatile swings that can be wholly unpredictable. While these moments can be both exciting and scary, it highlights the need to have an elevated level of comfort with risk. Try to take emotions out of the equation and avoid overreacting to big moves in price. Instead, investigate what might be driving momentum in either direction and weigh the right long term play.
Make sure to Exit
Though you often see stories on social media highlighting the triumphant success of seemingly overnight Crypto Millionaires, having unrealistic expectations will only set you up for failure. Also keep in mind that by taking profits out, you can recoup your initial investments and then be essentially playing with house money.
Already we are seeing more major financial institutions and important technology giants begin to position themselves to be part of the inevitable shift to digital currencies and the changes that will bring to the marketplace. Just as the Internet played a key role in transforming the world, Cryptos have the potential to affect it on a similar scale in a number of important ways.
What do you think? Will the Crypto currency Bitcoin rise above $70K mark by end of 2021?