How to build a sustainable investment portfolio in the crypto market?
To build a sustainable portfolio, you can apply some of the following strategies:
1. Diversify your portfolio: This is an important principle that helps minimize risk. Allocate your investment across different asset types such as Bitcoin (BTC), Ethereum (ETH), altcoins, and stablecoins. Generally, it is advisable to have at least 10-20% of the portfolio in stablecoins to ensure liquidity and protect the value of assets during periods of high market volatility.
2. Dollar-Cost Averaging (DCA): Instead of trying to predict the optimal time to buy, invest a fixed amount of money at regular intervals. This method helps minimize the impact of price volatility and restrains investment psychology during bullish or bearish market phases.
3. HODLing: This is a strategy of buying and holding assets for the long term, especially suitable for those who believe in the growth of each asset type. Holding assets through market volatility can yield significant returns in the long run.
4. Risk management: Regularly monitor and evaluate your portfolio to ensure that asset allocations remain aligned with your investment strategy and goals. It is advisable to reassess the holding ratios among asset types to optimize returns and minimize risk.
5. Use portfolio tracking tools: Applications like DeBank or CoinGecko can help you effectively track and manage your investments, providing an overview of your financial situation.