Diversify Your Crypto Portfolio

in cryptocryptocurrency •  7 years ago 

I would like to share some of my personal experience that may help those who are new to world of crypto currencies or maybe even Steemit. I will also disclose that this is not professional advice, but simply what i have considered and done in the past which has worked well for me. Always do your diligent research before making an investment.

There are a few points to consider when investing into digital coins and tokens. There are two positions I am talking about are trading and speculating.

TRADING
Trading coins is a very good way to earn extra money in this new lucrative market. These are typically short term positions and can be done as frequently as desired. However, it requires your attention to detail and time to manage, depending on how many digital currencies you have in your portfolio. A good trader, does not lose money. So spending the extra time to note your entry prices in bitcoin, is always a good idea, so when it comes time to sell a position in the markets, you know how much you've made. Everyone has different ways of doing this an here are tools available to help with managing them.

SPECULATING
Speculating in long term positions as an investment and even for a store of value. This for me is holding my favorite coins, such as Bitcoin, Ethereum, Litecoin, Ripple, Neo, New Economy Movement, just to name a few. I have traded these coins as well, but as always I tend to trade 50% of my position. For example, lets say you own six Litecoins, trade only three. This is a safe and smart way to make your trades. So if those Litecoins rise way above what you sold them for, you still have skin in the game, you made a profit, and most importantly, you didn't put yourself out of the game!!! Had you sold all six Litecoins, and the price rises 100% overnight, you may have some regrets. This applies for buying as well. Don't bet the farm. Take small position sizing, and keep them uniform in whatever the dollar amount is that fits your budget, whether it is $100 or $10,000.

BLOCKFOLIO APP FOR YOUR INVESTMENTS

Others may have a better system than what I have been using, but this is one simple and easy tool that I use for keeping an eye on my portfolio. It is an app called Blockfolio.
Blockfolio can be used to search for your favorite coins and add them to a customized favorite list. The best thing about this app, is that it allows you to enter quantities with respect to your crypto investments. For example, you can add those six Litecoins within the app, and it tracks the real time market prices. The app also has other features, such as sorting your portfolio by percent gain/loss, dollar amount, alphabetically, etc. Altogether, I think it is a great tool to give you a "birds eye view" on your personal portfolio. I encourage you to try it out.

COINMARKETCAP

This has become one of the most popular places to visit for checking the current status of a cryptocurrency. There is a ton of collective information and links here. I absolutely love this website an valuable resource. Here you can search coins by type, token, asset class. You can look at historical data ranges, sort coins by price, market cap, find links to social media, find exchanges where coins are sold. I cannot say enough about this wonderful site. It has helped me tremendously. This is definitely a resource for many people. Please visit www.coinmarketcap.com or www.coinmarketcap.io

I hope this information has helped you in some way. Please give an upvote if you have found this content resourceful or helpful. Thank you for reading, and good luck to you if you are brand new to Steemit and Crypto Investing!

Take care,

Dogeman

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