Steemit Crypto Academy Contest / S5W6 - My Cryptocurrency Portfolio

Assalam-o-Alaikum

Hello everyone I hope you are enjoying yourself I am here for participate in the engagement challenge of Steemit CryptoAcademy the name of contest is What is cryptocurrency protofolio in this post we discussed all the questions so let's start:

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What is cryptocurrencey Protofolio

For the purpose of storing our digital assets their are many centralized and decebtralized exchanges.Some of the coins are those that we stake and some we hold to perform the digital transactions.The coins list we store are collectively represent and form our cryptocurrencey protofolio.

Different coins included in it ,beacuse investments in more than one coins leads towards the good profit.So stake of more than one coins is a good choice.

Our cryptoprotofolio is built with the coins we buy and store in our wallets.We can exchange or buy the new coins by keeping in contact with the current market prices.There are so many wallets introduced to store our favourite digital coins according to the current prices or market trends.

In our wallets we can see the ups and downs in the market values instead of that there are so many tools or sites also that aware us about the current market situation so that we can make the decisions that how we have to utilize our assets or coins according to trends.

The major benfits of wallets is that we can manage our whole assets at one place and by keeping the prices in view we can monitize the fluctuations of the market trends and track our losses and profits we gain by our coins.

Diversified and Concentrated protofolio

Here in this section I will discuss about two types of protofolio which are concentrated and diversified and also the type I prefer.

Deversified Protofolio

Deversified protofolio as indicated by the name contain different types of coins that helps investors to grow more in their assets and gain the good profits by different coins they own.

So the collection or purchasing of more than one coin can help you to gain profit in the sense that in case of the market crashes or low prices in one coin,others may give you profit and in this way collectively you will be able to balance the profit and loses from down trends in the market.

Divirsified protofolio is the collection of more than one coin or more different coins of defi projects or crypto coins can make a balanced profolio of yours.In such way you will be able to tackle the risk due to market price flactuations.So this have the low risk ratio as compared to the concentrated protofolio.

Morever the divirsified protofolio is diversified with the type of utility token,stable coins and popularity of the coin and by deversifying their assets investors will be able to gain good with low risk.

Concentrated Protofolio

On the other hand there is concentrated protofolio in which the investors invests only in few coins ,this also increases the risk of the loss in the trading.It has some benefits or demerits also.Like in the good sense it will be easy for the investors to keep eye on the few coins he owns and it help it to easily take decisions of buying or selling to earn the profits.

But another side is that the user invest his whole assets in just some projects and in case of market crashes the investor have to face the huge loss in the one asset he own.So constructing the concentrated protofolio will enhance the risk of huge losses to the investors.

In the bearish trends of the market there will be no coins available that will compansate the loss of the coins that occurs during the down trends.So that was little about the concentrated protofolio.Now I will talk about my prefrence.

Protofolio that I Prefer

I Prefer the deverisified protofolio due to some reasons.

• Firstly their is low risk in investment during the bearish trends of the market.
• In case of loss their will be other coins available that compansate the risk.
• It helps us to gain good profits not stay limited to just few projects.
• In the case of wallet attacks or scams it helps to stay or retain some of the assets beacuse deversified protofolio can have the coins deversified in more than one wallet or exchanges.

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What is Hodling.Do you hodl crypto assets.

Hodl means to hold the assets for the long term in the sense of crypto assets.It is the type of investment in which the investors hold the coins or digital assets for the long term to gain the profit.Investors have to put some currencies with the trust that in the future good return can be gain.

In hodling investors have to put the trust on one coin or project in which he is going to invest and wait pateintly that in the future when bullish trend goes on he will be able to gain the good amount of profit.Hodling need pateince and this is done usually by the long term investors that have the stable conditions financially.

If I talk about the best place for hodling the crypto currencey it will be the decentralized cryptowallet these are much safer and satisfactaly someone can hodl in the wallets.On the other hand their are exchanges also where we will be able to hodl the asset.Some people that are stable enough to manage the hardware wallet it will be much safer place than all.

In the answer to the question that I hold some coins so yes there are some coins in my crypto protofolio that I hold and trust that in the future I will be able to gain the good return.I hold different coins in my wallets of different exchanges .Most of the time I hold coins on the binance exchange.

screenshot taken from binance

What is Staking.Do you Staking crypto assets.

Staking can be said as the source of passive income through trading.In staking we did not have to hold the coin for long terms in it we will be able to gain profit by different ways passively.

Staking can be explained in the crypto language that the process in which we gain the profit such as power governance,farm token and in many ways we will be able to earn passively by staking.Investors have to hold the coins for sometime in which he will be able to earn through different sources of passive income.

In different blockchains we can earn different rewards by staking.Such as in the Tron blockchain by staking TRX we will be able to earn the porportion of the tron power.And On Steemit also the Sp holders earn some porportions.So by staking one can be able to earn the little income from different sources.

We did not wait for the years to take the benefits from the assets we have.So that was little about staking.

I stake some coins in my wallets to earn from the passive way.There are different wallets in which I have coins.So my staking in the Steempower is foĺlowing.

Screenshot taken from mobile

Which do you prefer Hodl or Staking?

Most of the time I prefer staking beacuse I am not the long term investor and their are more chances of profitability in the staking as compared to the holding.

Another factor is that holding does not increase the number of coins but the staking increase.In holding we have to just store the assets for the long term but in staking the income can be earned passively just for some time or months.We did not need to wait for the price pumps for so many years just to gain some profit from our holding coins.

So I consider staking more profitable for the traders who are short term specially can not wait for the long terms.

Conclusion

In this post I have explained about the cryptocurrency portfolio. Portfolio is the collection of all the digital crypto coins that we have in different wallets or exchanges. The concentrated portfolio have more different types of coins than the diversified portfolio. Holding is the investment for a long time to get profit in return while staking is done to get good rewards for locking the coins and provide liquidity to the pools.

I invite
@afshaan
@liasteem
@minikay
to participate in this contest.

Thank you

Achievement 1

written by:@cryptoloover