This bull run is a once-in-a-lifetime opportunity to make your first million.
Properly invested $5k-$10k now = $million+ in 2025.
But most will end this bull run with $0 cause they don't know how to build a successful portfolio.
Here's my mega-article on how
➮ In this article, we will go through the 3 main aspects of a successful portfolio:
1. Risk management
2. Managing your portfolio
3. Taking profits strategy
Let's dive in
➮ Creating a Risk Management strategy
✧ The first thing to understand when creating such a strategy, u don't need to be profitable in every TX
✧ With proper risk/reward, u can lose in 9 out of 10 deals, and yet this 1 successful trade out of 10 will bring you into profit
➮ Overall, this means that you should treat losses as part of the journey and that with the right strategy, you will still be in profit
✧ The first step to successfully implementing such a strategy is diversification
The main thing is not to do over or under diversification
➮ Therefore, I recommend having at least 30% in blue chips, with 15%-60% in stablecoins
✧ Everything else depends on you
✧ Choose projects considering narratives and the state of the current market
Let me explain
➮ If the market is bullish, having exposure to more assets is generally advantageous, but you also need to be careful not to lose track of your investments
✧ In a sideways market, it's better not to do this and to invest in projects you are confident in, focusing on quality
➮ Managing ur portfolio
✧ Properly managing ur portfolio is key to success in crypto
✧ What your management should consist of:
- Take Profits
- Rebalance strategy
- Find new projects
- Stake and compound
- Discarding existing holdings
Now about the most important ones
➮ Taking Profits
✧ Taking profits properly is key to successful portfolio management
✧ You should consider:
- Time zone
- Risk/reward
- Financial goals
Now I will share with you my strategy for how to take profits
➮ I prefer to take out my initial investment when a project does 2x and then continue holding depending on my belief in the project
✧ This way, I lose part of the profit but reduce the risk of losing everything
✧ Ofc, I apply this strategy to more risky plays
➮ Also remember that 30%-60% of your portfolio should be in stables
✧ Why? To buy the dips/stake/farm
✧ I do this by taking profits on the way up and farming stables in the meantime
✧ When I deploy, I restock stable at the next best chance to earn
➮ Staking
✧ To find good staking options, monitor Twitter, Binance square, etc.
✧ Remember, staking requires time to manage fluctuating rates
✧ Allocate weekly time to optimize to manage your LPs and farms to ensure you’re compounding
➮ Rebalance strategy
✧ Rebalancing is probably one of the most complex aspects of a successful portfolio
How do you use it?
✧ Suppose you bought two coins for $100 each, which are now worth $1k for the 1st and $10 for the 2nd
This is where we would use rebalancing
➮ As coins rise or fall, so does your risk/reward ratio, which is why we use rebalancing
✧ In the situation I described above, you have two choices:
- Leave everything as it is
- Transfer part of the first token into other options
Now, it’s all about opportunity cost
➮ Always remember that holding a coin is the same as buying it
That is, if you hold $SOL worth $190, it's the same as being willing to buy it now at $190
Ask yourself this question when you're rebalancing
This is the basis of what you should do when creating your portfolio, but remember to DYOR
If you want to delve deeper and explore more diversification strategies, etc,
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