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Hello, great Steemians! You are welcome to my post. In this post, I have discussed a cryptocurrency portfolio. Let's get started...
Explain in your own words what a cryptocurrency portfolio is.
To a cryptocurrency trader's or investor's the collection of cryptocurrencies is referred to as a "cryptocurrency portfolio." Cryptocurrency portfolios feature a wide range of various cryptocurrencies, including altcoins and cryptocurrency financial products. If a trader or investor exclusively sticks to one sort of asset, there isn't really much difference between a crypto portfolio and that of a typical investment portfolio.
As I mentioned earlier, as a cryptocurrency trader or investor, you may simply keep track of your portfolio using specialized tools and software provided by a third party, or you can do it manually using a spreadsheet so that you can compute both your holdings and your profits at the same time.
In my situation, Coinmarketcap serves as my cryptocurrency portfolio and is a tool that I use to keep track of my holdings.
Screenshot from Coinmarketcap
In a nutshell, a cryptocurrency portfolio is a balance sheet (financial statement) of our cryptocurrencies that includes the assemblage of multiple cryptocurrencies. You may now track the price at which you purchased a certain cryptocurrency and the price at which you intend to sell it by using a cryptocurrency portfolio.
Do you prefer a diversified or a concentrated portfolio? Explain each one.
When it comes to investment or trading, it is advisable for everyone to create a portfolio based on the assets of the person holding it, and it is also good for such a person to understand the terms "diversified portfolio" and "concentrated portfolio."
As for me, I prefer a diversified portfolio to a concentrated one. Let's look at the two words.
A diversified portfolio
A diversified portfolio refers to the distribution of a person's investment (in cryptocurrency) across multiple sectors or assets. For example, as a trader or investor, you can diversify your money into different cryptocurrencies, like STEEM, BTC, TRX, ETH, and many others. Just like in the area of financial markets, a lot of investors diversify their money by investing in different companies such as those in the fields of health, agriculture, finance, real estate, etc.
The reason why I prefer a diversified portfolio over a concentrated portfolio is that it helps reduce the risk of an investor losing his or her entire portfolio.
Concentrated portfolio
A concentrated portfolio is simply the type of portfolio where an investor invests his or her money in only a few cryptocurrencies with limited diversification. What this means is that a concentrated portfolio is an investment portfolio that focuses on a few assets for greater gain.
In this type of portfolio, the risk is high and the gain is also higher since the fund is only invested in a few assets rather than many.
In your portfolio, do you have any crypto assets in Hodl? Explain what a "holder" is in cryptocurrencies.
screenshot gotten from Coinmarketcap
In my portfolio, I have some assets like STEEM, BTC, and TRX. To that end, I will explain the meaning of "holder" in the context of a cryptocurrency.
In your portfolio, you have some crypto assets that you are staking. Explain what "staking" is in cryptocurrencies.
When talking about crypto assets in staking, it's just like someone who lends his/her money to a bank to receive interest. Now to this: "staking in cryptocurrencies" is a method through which investors contribute to a crypto blockchain network that has to do with locking an investor's or trader's cryptocurrency for a specific period of time.
To this end, when you stake your crypto assets on an exchange like Binance, you will be eligible to earn rewards on your holding. In a nutshell, cryptocurrency staking is a means to earn additional crypto by lending your cryptocurrencies into the staking program to earn some percentage rewards from the asset that you have agreed to stake.
The rewards that are earned from staking cryptocurrencies are based on the amount (quantity) of cryptocurrencies that you have agreed to stake. I.e., the higher the quantity, the greater your rewards.
Screenshot from my Binance wallet
The screenshot above shows the cryptocurrencies that I have staked in my Binance wallet. In Binance, there are flexible savings and fixed savings, which are all forms of staking.
Which do you prefer: hodling or staking?
I prefer staking to hodling. Hodl doesn't earn interest; rather, you only hold your cryptocurrency and wait for the price to rise so you can sell. With staking, the value of my cryptocurrency can increase based on the percentage that is associated with the staking amount.
Staking is one of the most profitable ways to earn cryptocurrency rewards without doing anything other than locking your assets for a specific period of time. In addition to this, staking offers me the ability to earn some higher percentage rewards than Hodl.
Long-term investors prefer staking their cryptocurrencies to holding them.
Thank you for reading my post. I am inviting;
@yakspeace
@temitopef
@preye2
Hola amiga, en Binance tengo unas pocas criptomonedas en Staking, pero viendo tu confianza voy a mover las próximas Recompensas en Steem y TRX para Binance, de esta forma ceonsinla rentabilidad es mayor que en las Exchanges de la competencia jaja.
Buena publicación. Éxito en el concurso.
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Honestly, I appreciate your support. Thank you so much.
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I myself currently have assets and these assets are at stake. I'd rather risk than hold. I also share posts about portfolios, if you have time please take a look and I'm very happy.
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Really that means we both are in the same category of choice.
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Congratulations! This post has been upvoted through steemcurator06. We support quality posts, and good comments anywhere, and with any tags.
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Greetings friend, excellent information that you share with us, and I prefer the holding like you, I am calmer following up on my currency. Success
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You have written well @jasminemary about the crypto currency portfolio. You prefer staking than holding because of the interest that comes with staking the asset. Sure, staking is a way crypto traders can earn passive income and there asset will also increase because of the little token added to it always as reward. I wish you success in this entry my friend.
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You have presented another interesting article for us dear friend.
HODL is now a strategy that some people use in the cryptocurrency market when they believe their coin will be worth more in the future. So if you think the price of your coin is going up, you don't sell it. Instead, you keep it in your wallet and wait for the price to go up even more.
Thanks for sharing friend, and goodluck in this contest. #steem-on.
I will appreciate if you equally engage on Mine
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Thank you for stopping by sir.
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