Personal Finance - Crypto Currencies Portfolio
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2 mins
As the market for cryptocurrencies matures, Crypto Currencies should be part of one’s portfolio. I get that investing in cryptocurrency can be a volatile ride, but the basic principles of asset allocation and diversification still can be used to build a solid crypto portfolio.
Investing in Crypto Currencies is a lot like investing in Stocks. There are hundreds of coins/projects to pick and choose from. Make Crypto Currencies around 5%-10% of overall portfolio allocation.
Of that 5%-10%, use a suitable asset allocation & start investing.
Proposed sample allocation
| Crypto | Allocation % |
|---|---|
| BTC | 30.00% |
| ETH | 20.00% |
| ALTCOINs | 35.00% |
| USD | 8.00% |
| USDT or Stable Coins |
7.00% |
| Total | 100.00% |
Keep USD and Stable Coins for buying the dip or opportunities
Resources
Use the below website for trading or investing
- Crypto -Coinbase
- BinanceUS
- Kucoin
- Crypto -BlockFI (bankrupt now)
- Try Celcius Network for loans on BTC and ETH (bankrupt now)
Research
Use the below website for research or learning
- coinGecko
- coinmarketplace
- cryptopanic
- 3commas news
Conclusion
A critical difference between crypto trading and investing is the time frame. Cryptocurrency investing is typically a long-term strategy. Cryptocurrency trading is a short-term strategy. Understand the difference between Trading and Investing & find out which camp you belong to.
The cryptocurrency market is still in its infancy stages and is in a constant state of evolution. It would be wise for you to only invest money that you’re prepared to lose. But don’t get scared at the sight of the word lose. As I said earlier focus on asset allocation and start with a small percentage to test your toes and find out which camp you belong to.
Parting Thoughts
If you are curious look for other topics like
- Top coins
- Staking
- Wallets
- DeFi Exchanges
Other Web Resources
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Satya Dillikar
Accomplished technology leader with over 20 years of experience leading global teams to deliver innovative, scalable, and mission-critical software products
DISCLAIMER: All views expressed on this site are my own and do not represent the opinions of any entity whatsoever with which I have been, am now, or will be affiliated. Any collateral used is referenced in the Web Resources or others sections on this page. The information provided on this website does not constitute investment advice, financial advice, or trading advice.