Hereâs an Article on How to Build a Perfect Portfolio
Crypto portfolios typically fall into 2 categories:
âą Too aggressive and drops 90% during corrections
âą Too passive, missing potential profits.
Hereâs an article on how to build perfect portfolio
Before I begin, I have a favor to ask...
I spent a lot of time writing this article, trying to make it genuinely useful for you, so if it's not too much trouble, please follow me, share, leave a comment, or simply hit like đ€.
1 âź First, you must set portfolio goals
⧠Here are the main goals:
- Lower Risks
- Increase Profits
- Track your moves
- Improve your skills
Portfolios vary greatly depending on your risk management, additional goals, and time, but the foundation is as follows
2 âź Overall, there are two main things to consider when creating a portfolio:
1. Balance
2. Meaning of each sector of your portfolio
⧠Understanding these 2 things, you can already put together a simple but useful portfolio.
Let's discuss each aspect separately
3 âź Balance
⧠You need to keep the portfolio balanced.
⧠This means having risky plays (lowcaps / alts in price discovery stage) and at the same time those that mitigate this risk (eth/btc)
⧠This way you can't lose everything, and you are taking what is called Wise risks
4 âź Meaning of each sector of your portfolio
⧠You must understand every aspect of your portfolio:
- Stables to reduce risk and buyback
- $BTC and $ETH for strong crypto position
- Large alts for long-term investment
- Risky alts for 10x profit and more
5 âź Another important thing is that the portfolio should vary depending on the market.
⧠You can't hold 50% in meme tokens during a bear market
⧠So, shift your stables depending on what season we're in
Now the most interesting
6 âź Somehow many know most of what I wrote above and yet they do everything wrong.
⧠That's exactly why I felt it necessary to go over the main problems when creating a portfolio.
⧠After this, we will move on to a few portfolios examples
Let's dive in
7 âź Aggressive portfolio
⧠Many see a post about a degen turning $1k into $1M and rush to invest everything in some coin
⧠Develop a strategy and stick to it
⧠Be patient and in the end, you end up being wealthy
8 âź Too diversified portfolio
⧠Diversification is good, even necessary.
⧠But many overdo it and with a portfolio of $1k buy 40 different coins
⧠You won't make a lot this way, so know your limit and keep it simpler
9 âź No rebalance strategy
⧠Rebalance means buying and selling assets to maintain the percentage allocation.
⧠Suppose one of your tokens has increased in value and now makes up 30% of your portfolio when it should be 5% max
⧠Take profit and rebalance it
10 âź Now that we have gone through all the basic mistakes, you are ready to start on your first portfolio.
⧠To help you understand where to start, below I will describe the 4 main types of portfolios
⧠% may vary depending on the risk/size/etc. of your portfolio
11 âź BTC ETH split strategy
⧠A simple strategy which I think is self-explanatory from the name.
⧠Use it if crypto is nothing more than a simple investment for you and you don't want to delve into it.
⧠Quite simple, safe, and profitable
12 âź The Barbell Strategy
⧠A strategy where we skip the middle part of investments and divide the portfolio into risky and non-risky plays.
⧠50% are stables, $BTC, $ETH
⧠50% are high-risk plays
Not completely safe but can be quite profitable
13 âź 50/25/25 strategy
⧠50% in $BTC and $ETH
⧠25% Low Risk
⧠25% Mid and High risk
⧠This is a basic, safe portfolio that suits everyone and doesn't take much time
14 âź Max diversifying strategy
⧠It's difficult to make a perfectly diversified portfolio, but for the 2024 cycle, I would do it like this:
- 10% in Stables
- 30% in $BTC/$ETH
- 10% in RWA
- 10% in AI
- 10% in GameFi
- 10% in L2
- 20% High risk plays
% may vary
15 âź Conclusion
⧠Remember that this is my opinion and my strategy.
⧠So always DYOR and invest only what you are willing to lose
⧠My portfolio recommendation is current but subject to change
⧠As the industry evolves, I continuously learn and adapt, and you should too
DONE!!!
#BullRun #altcoins #BitEagleNews