Steemit Crypto Academy Contest / S5W6 - My cryptocurrency portfolio

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Hello everyone, how are you doing, I hope everyone is doing great, I welcome you to week 6 of the engagement challenge, and here I shall be participating in the contest discussion of My Cryptocurrency Portfolio.

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Explain in your own words what a cryptocurrency portfolio is

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A Cryptocurrency portfolio in simple terms means the total investment of individual cryptocurrency assets, the total crypto investment an individual is holding in a wallet at a particular moment makes up for the user's portfolio.

Cryptocurrency Portfolio is how we manage the profit and loss of our wallets assets, for instance, the portfolio is made up of several coins, then sum up at the price at which the assets are bought till the current price of the assets, this gets to tell us whether our profile is increasing or reducing, i.e whether we are making a positive return or we are making a negative return on our assets at the particular time.

For instance, in the case of our binance, we get to monitor the portfolio, where we get to see + percentage when the market is good, and we could see how much interest has been added to our portfolio and when it's negative, we could as well how much loss we've made from our portfolio, in simple term, Portofilo is our crypto investment means the total sum of the assets in our wallets.

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From our Binance overview, we could easily view our portfolio, and also compare the amount of crypto we have in our various wallets, such as in Funding and Spot wallet.

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Do you prefer a diversified portfolio or a concentrated portfolio? Explain each one.

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The word Diversified comes from Diversification, which means having several modes of cryptocurrency collections, whereby a Diversified portfolio means having several assets in our wallet, recall that a crypto portfolio means the amount of our cryptocurrency investment, but a diversified portfolio means the amount of our various cryptocurrencies collections.

In a diversified portfolio, the user holds various cryptocurrency assets, as in a case where the user can own STEEM, TRX, BNB, etc, this is depended on the amount of coin the user decides to hold at that moment.

While a Concentrated portfolio is the quite opposite of a diversified portfolio.

A concentrated portfolio is a mode of investment where a user owns a single asset in their wallet, which means the user decided to stay committed to one network, in this case, the user Is only owning a particular asset.

For instance, a user can decide to own only BTC in their wallet, such investment is known as Concentrated, which means the user is concentrating and committing to BTC alone. it doesn't mean the user has a single BTC, the user can own various amounts of that coin, but it's a single investment only.

Which do I Prefer? - I preferred the Diversified to the concentrated portfolio, in a diversified portfolio, you have the chance of making multiple earnings of investments from various assets, which means there can be a fluctuation in your various assets, and when the market moves in your prediction, your portfolio yields to a massive return, but in the case of the concentrated portfolio, your chance of winning is minimum, you only made a small return, but if its in the case of diversified, you have multiple choice of earning returns.

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In your portfolio do you have any crypto assets in Hodl? Explain what is Holder in cryptocurrencies.

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Yes, I have various assets I am currently holding, my crypto portfolio consists of STEEM, TRX, and BNB, these are the coin I currently have a long-term holding for.

What is Holder - HOLD in cryptocurrency means Holding On for Dear Life, this has been a common term in the cryptocurrency realm, where users decided to stick to a project no matter the news or price fluctuation in that particular asset.

Holding is an act practiced in cryptocurrency where you stay committed no matter the price fall, but you have a plan for the coin, you have great expectations for it, and you have more confidence that it will still yield the positive return you have predicted, so in this case, you have decided to hold, you are practicing a long term investment, you plan to hold it for as long as possible.

Holding is also practiced In a way that you bought assets in the bear market or you bought it when the price is low, then you decided to hold them forever, the word buys the Dip comes in this relation also, you bought at a low rate, then you are holding for a long term, you are sure it will be as high or close to what you predicted, so you are a long term holder, you are committing as long as it will take, and this is a simple illustration of what Holder means.

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In your portfolio, you have some crypto assets in Staking. Explain what is Staking in cryptocurrencies.

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Yes, I currently have some amount of my assets in staking, and I carried this out in a DEX exchange, although the APY is small, it's still safe and more appreciable.

Staking - Staking is another mode of crypto investment where you lock your cryptocurrency assets for some time, during this moment, you have to stake your assets in expectation of returns, and this is done for some time.

The Staking of cryptocurrency is being done in a way that the user delegates to a node, this node might be a miner who needs large assets to validate new coin, so in that case, you are coming up as an investor, which means you are investing in the mining, and then you get to spit the reward after they as well got the block reward.

Staking has been a safe mode of investment, it means you stake your assets to a node, and in return, you get more of the coin you have staked, instead of having your assets lying in the wallet, once you commit to staking, the asset is now generating income for you in return.

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Which do you prefer Hodl or Staking?

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Staking is preferable when it comes to a mode of investment when you participate in staking, your assets are locked and you get some amount of coin in returns, and in this case, it's a win-win for everyone.

Staking yields more interest, while in holding, your assets are dormant and it's not doing any good for you, instead of that, one could just stake it in a particular node, and the miners do the activity while you get the return as your profit.

So it is no doubt that I prefer staking rather than holding it in my wallet, and this is even more profitable as you are letting your money fetch you more money.

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Conclsuion

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A cryptocurrency portfolio is the collection of users' assets in a particular wallet, the diversified portfolio is preferable as users get to invest in multiple assets which means you get to maximize your returns and you have more chance of winning from multiple sides.

Here comes my conclusion on the topic Cryptocurrency portfolio, where your portfolio is the sum of the total asset or the overview of the assets in your wallet, thank you for coming, I hereby invite @josepha and @Sahmie to participate in the contest as well.