The best strategy for building a strong portfolio 💼
A bull market is a great opportunity to turn $1000 into $1 million or $
50 to $50k, but only if you know how to wisely assemble a good portfolio. In this post, I will share a few life hacks 👇
1️⃣ Develop a risk management strategy.
Keep in mind that losses are an integral part of the journey in crypto; everyone experiences them sooner or later. To minimize risks, diversify your portfolio:
• 30% of all assets should be in blue chips, i.e., proven valuable assets.
• 15% should be invested in stablecoins.
• 55% of assets can be invested at your discretion, but the majority should not be in high-risk assets (shitcoins, memes, etc.).
In a bull market, it makes sense to acquire assets from various protocols and projects. When the market is weak, investments should be focused on one project you are confident in.
2️⃣ Manage your portfolio.
Management includes:
• Taking profits
• Rebalancing strategies
• Finding new projects
• Dropping some assets
• Compounding investments.
3️⃣ Take profit on time.
To withdraw profits on time, consider factors like time zone, risk-to-reward ratio, and financial goals. For example, if a token has already shown 2x growth, it makes sense to take profits to avoid larger losses in the future.
4️⃣ Stake assets in the best protocols.
You can find the best opportunities in the crypto section of Twitter or through trusted protocols. This will help create conditions for steadily growing income.
5️⃣ Rebalance your portfolio.
Holding a coin = wanting to buy it at that price. If you are holding ETH at $4000, it means you are willing to buy it at that price right now. If not, then rebalance into other assets.
Remember to DYOR and rely only on your own experience and intuition when building a portfolio.
DYOR
