Crypto Academy Week 7 - Homework Post for @stream4u submitted by @salmanwains

First of all I'm really thankful to @steemitblog , @steemcurator01, @steemcurator02 and all the professors of SteemitCryptoAcademy specially @stream4u. We are learning a lot from these lessons started by the Steemit Crypto Academy Team.

In this week 7 lecture of Professor stream4u, we got to understand about Money Management and Portfolio Management.

Let's move forward to the Homework Task assigned by professor stream4u

Make a Homework Task 7 Post on the below Topics which you can also discuss according to your views on it, and try to explore it as much as possible but in simple terms.
1. Discussed Money Management.
2. Future plan on your Money Management.
3. Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.
4. Future plan on your Portfolio Management.
5. When was the last investment failed and Why? (those who have experienced this can provide views.)
6. Conclusion.

In Crypto, Money Management is a monetary technique which decides how a person will put his cash in various cryptocurrencies. Exchanging isn't care for betting. In betting, failures are encouraged to spend more to recapture whatever has been lost; notwithstanding, in crypto currency exchanging, the inverse is valid.

In simple words, Money management is all about managing your overall money by investing in different cryptocurrencies with an effective plan in mind.

FOMO (Fear of Missing Out) Won’t Beat You if we have a plan

FOMO is a term regularly drifted around in the crypto world. In light of FOMO, numerous crypto merchants actually follow up on feeling as opposed to having such an arrangement, and that, sadly, as a general rule is simply going to end gravely. An arrangement of when to purchase, and when to sell, just as hazard and money management.

Calculating the Potential Risk Against Potential Profit

In the event that the potential benefit is under multiple times the danger — for example the appropriate response is under 2, at that point think cautiously about doing this exchange.

• Keep 30% of your trading capital in stable coins

• Don’t Bet Against the Trend

• Only Invest what you can afford to Lose

• Invest in multiple coins, don't invest your full money in One coin

• Sleep Well

Portfolio Management

Portfolio Management is a way to manage all your coins in which you have invested your money. As we already said above, we should invest in multiple coins, so if some coins go down remaining may cover the loss. You may have a look at my portfolio below (some coins are red while others are green and going up).

Most importantly, We must know the right time to sell and right time to buy. Like, look at above screenshot and see how I earned 5 US Dollars in 3 minutes by doing a little trade in Hive.

Future Plan on portfolio Management

My future plan on portfolio management is to work through cryptocurrency tracker. A cryptocurrency portfolio tracker is a site, application or another kind of stage that permits us to deal with our speculations and monitor how the estimation of our coins are evolving. Trackers connect with wallets and trades; that should be an all in one resource for all we require to think about how our portfolio changes in esteem. Moreover, that tracker should work as an exchange so that we can buy and sell as well to gain profits automatically.

Extra Tip: Intending to put your resources into cryptocurrency for quite a long time or years? It's better for us to utilize an outside wallet and a tracker.

When was Last Investment failed and Why?

My last investment is failed just 15 days ago when I purchased some DENT coins. On 21st February 2021 my friend suggested me to buy some DENT coins. I didn't had much money at that time so I bought 8936 DENT Coins in just $16.

On 12th March 2021, that same friend suggested me to sell those DENT and then buy again after 1 day to get a profit of $5. So, I sold all of my DENT coins. But after few days when I sold my DENTS Coins, it started to go up and up and still at a strong position. So today, if I want to buy those 8927 DENT coins, they will cost me more than $88.

So, this is the investment which I think I failed at. But thank GOD, I still got some profit and I'm in a safe situation.

Conclusion

Conclusion is that Money management & Portfolio management is very much important. Proper money management can help prevent any loss and that is the reason we must also use a portfolio to manage our money or assets effectively.

And, by keeping in mind my failed investment of DENT, I would say that don't invest in any crypto coin by hearing from a friend only. Don't sell and buy in panic situation or by listening from a friend. Don't put your all crypto money in one coin only, try to put your crypto assets in more than 4,5 coins.

Thank you all for reading my post. I hope Professor @stream4u will love reading my Homework Task 7.