Steemit Crypto Academy Contest / S5W6 - My cryptocurrency portfolio

Any cryptocurrency coins that you hold in an exchange or any wallet and you own them can be called your cryptocurrency portfolio. Managing your digital currency investments can also be called a cryptocurrency portfolio. A cryptocurrency portfolio is very important for the crypto trader in the cryptocurrency world.

A cryptocurrency portfolio keeps us informed about our profit and loss which helps us a lot. Many cryptocurrency portfolios apps also keep us informed about live cryptocurrency prices. Cryptocurrency portfolios provide a lot of help to investors to check their cryptocurrencies to see if they are growing or not.

Your cryptocurrency portfolio can consist of a number of coins that you have in your wallet. For example, if you have five cryptocurrency coins in your wallet, your portfolio will consist of 5 coins. And adding up all the value of these coins will equal the value of your portfolio.

These coins maybe BTC, altcoins like (ETH & ADA) and NFTs. Portfolio theory tells us that we should never invest in any single coin but we should invest in many coins so that even if market goes down we don't lose too much. There are also some types of cryptocurrency portfolios that we will cover in the next questions.

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EXPLANATION OF DIVERSIFIED & CONCENTRATED PORTFOLIO

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Now I will explain these two cryptocurrency portfolios and we will finally know which one is the best.

• DIVERSIFIED PORTFOLIO

A diversified portfolio is one where we can invest in a variety coins and reduce our risk. In case of a market crash, this portfolio will not cause us as much loss as we will have to face in a concentrated portfolio. For example, if the market crashes, if some coins are performing poorly, some of them will be performing well, so we have less risk in this type of portfolio.

• CONCENTRATED PORTFOLIO

A concentrated portfolio is one that may hold a small number of crypto assets and has a high probability of loss. This number of crypto coins may be five or less. For example, if the cryptocurrency market crashes, we will not have as many coins, and if some of our coins are performing poorly, this could cause us to lose a lot of money. But in a positive market we can make good profit with it.

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WHICH ONE WOULD I PREFER

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Both of portfolios have their own advantages and disadvantages. But I would prefer the diversified portfolio as it has a much lower probability of loss. Because if we talk about a concentrated portfolio, we can face a lot of losses that can lead us into a huge depression. But a concentrated portfolio can also give us huge returns, as we hear that some profit is better than nothing. So I would prefer a diversified portfolio.

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WHAT IS A HOLDER IN CRYPTO

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The term HODL was used by a crypto user named Gamekyuubi in his post in 2013. Actually at that time he was in a state of intoxication and he wanted to write "I am holding" in the title of his post but due to a small mistake, he wrote "I am hodling" and that's how the name caught people's eyes.

HODL is a term in cryptocurrency that means if the market goes up or down, we don't care, we will hold the cryptocurrency for a long time. HODL stands for "Hold on for dear life" which means not selling crypto even in a bull or bear market.

HODL is also a very good strategy for people who don't know how to take long or short positions in the crypto market, it is very beneficial for them and it also protects them from losses. It is a great option for newcomers to the crypto world.

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THE CRYPTO ASSETS THAT I HODL

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I have been crazy about holding crypto since the beginning and I have held many coins and sold them when my target was met. If I talk about the current time, I have $113 worth of STEEM lying around with a volume of around 680 STEEM.

I bought these steems for a long-term holding and may later maybe I will stake them so that I can earn passive income from them. I have no intention of selling them nor will I be selling them soon so this is my cryptocurrency holding.

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WHAT IS STAKING IN CRYPTO

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Cryptocurrency staking refers to stake your cryptocurrency and earn passive money in the form of rewards. There are many cryptocurrencies in the cryptocurrency world that we can stake and get rewards from. These cryptos include Ethereum (ETH), Cardano (ADA), Solana (SOL) and many other cryptocurrencies.

The blockchains that allow us to stake our coins use a consensus method that we can call Proof of Stake or POS. When we stake our coins, these blockchains put our staked coins to work and reward us. If those who want to hold crypto for a long period of time can make money staking their holdings.

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MY STAKING

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I have also staked around 9000+ steems on the steem blockchain from which I have earned a good amount of steem power by voting on other users' posts as a curation reward. And one good thing about this staking is that we are given TRX tokens along with steem power.

_{My Stakings}

I have 680 steems in my binance wallet which I have shown you above and I intend to put all these steems on staking and I will do so soon. In the screenshot above you can see my staking in the form of steem power in my Steemit wallet.

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WHICH DO I PREFER HODL OR STAKING

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I would prefer staking rather than holding because by staking we can earn more money than holding. In staking there is no chance of losing money, rather we can get more and more coins as a reward, while in holding we can face loss as no one can predict the future of crypto.

The more we stake our coins the more we can earn passive income. But in the Hodl we just have to wait for the price pump and nothing else. Big investors in the world of cryptocurrency, when they invest for the long term, they also put their coins on staking so that they can earn more amount of those coins.

So I will prefer staking rather than holding, because staking is more beneficial than Hodl. So my post ends like this, thanks to all friends who will visit my post. Allah hafiz for next post.