Portfolio Management (Cryptocurrencies)
It's the most common question that is asked my almost every single cryptocurrencies holder or trader. Because it doesn't matter you are a daily Crypto trader, long term holder or doing scalping. The portfolio management is necessary for all of them. If you are one of them who are finding the answer of this question then you are in right place.
For Long Term Holders.
You can do it so many ways. If you are one of long term holders then don't get yourself completely indulge in one coin or project. First of all study the project completely that you want to buy then only add 10% of your investment in that coin and also study some other projects as well and divide your investment in atleast three to four coins.
But these four coins don't contain more than 30% of your investment. Because if they go down then you can have some serious loss. But the question that arise there is why should we 3 to 4 coins? The answer is very simple. If one coin by chance goes down then other is there to compensate your loss. If second coin is also goes down then third or fourth coins are there to help you.
So, alway divide you crypto portfolio in more than one coins and atleast in 3 to 4 coins because it's a good strategy to handle the situation easily. And alway choose a project after studying heavily on it. Don't buy a coin that doesn't have any use case because it will only make you down.
Last thing for long term holders is always buy that coin that is bringing some innovation in Crypto world because such type of coins definitely outbreak in near future because of there innovation and special use case. And if you find any clash of the project then leave that one and move toward some other.
For Short Term Holders.
The best tip for short term holders or daily trader is to make yourself completely touch with the fundamental news related to the coin that you are eyeing on. You can get some profit from memes coins as well in such type of holding. Because such type of coins can give you huge profit as compared to others but don't invest more than 5% in them. And always make an exit from them when you are in profit. Don't want to get more and more profit. I means don't be greedy.
Divide your 25% portfolio in following way:
5% in meme coins
10% in some solid projects
10% in the coin that is in hype at that moment
But don't forget to keep yourself out of them when you are in good touch. Otherwise you may gain some real or high loss. Be cautious and along with technical analysis always keep and eye on fundamental. Because fundamental destroy the rythm of a project more than its strong technical analysis.
In short term holding always manage your portfolio like that and in more than one project because unlike long time holdings in short term holding you are at more risk in short term holding because you are also holding some volatile projects. So, be double cautious in such type of trading.
At End
I'm not a financial advisor at all. The all that I wrote there is my personal experience. You can try it at your own risk. I hope this article will surely strengthen your knowledge of some portfolio management. If it's new to you then you can express your thoughts as well. Thanks.
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