This bull run is ur chance to turn $1k-$10k into $1M+
Many new millionaires will be created
But most won’t make it cause they don’t know how to manage their portfolio effectively.
I made 625x on entire portfolio this cycle: $8k->$5M
Here’s my strategy 👇
1/➮ Most people will end the bull run with nothing because they don’t know how to properly build their portfolio
✧ The main goals of a portfolio are to reduce risk and increase reward
To achieve this effectively, we need the right strategy:
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2/➮ In this #binancesquare article I will tell u about 3 key elements that a good portfolio strategy should consist of:
- Risk management
- Managing your portfolio
- Taking profits strategy
Now, let's dive into each one separately👇
3/➮ Proper risk management is essentially good diversification
✧ It's like a team, with different classes that help each other:
- Stables: To grow capital, reduce risk, and buy the dip
- Blue chips: Long-term investments, mid-term investments, lower risk
- Low caps/memes: 10-100x plays, the main source of huge profits
Let me show few examples👇
4/➮ Portfolio 1 (Low Risk)
✧ The portfolio consists of long-term investments and stables to buy the dips
It could look like this:
- $BTC 10-25%
- $ETH 10-25%
- $SOL 10-25%
- Stables 50-70%
This is suitable for those who have another job, keep part of their capital in crypto, and have little time to monitor their portfolio.
5/➮ Portfolio 2 (Mid Risk)
✧ A semi-degen portfolio, which includes long-term holdings and mid-term investments
It could look like this:
- $BTC 15-20%
- $ETH 10-20%
- Blue Chips: $1B+ memecoins/high cap alts - 30%
- Stables 30-40%
Let’s move on to the next one:
6/➮ Portfolio 3 (High Risk)
✧ Maximum risk, maximum reward portfolio that needs to be constantly monitored and updated
It could look like this:
- $BTC 10-20%
- $ETH 10-20%
- Blue Chips - 20%
- Low caps - 20%
- Stables 10-20%
But that's not all👇
7/➮ Simple diversification is still not enough
✧ Consider market phase:
✧ If the market is bullish, having exposure to more assets is generally advantageous
✧ In a sideways market, it’s better not to do this and to invest in projects u are confident in, focusing on quality
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8/➮ Managing your portfolio
✧ Properly managing your portfolio consists of the following:
- Rebalance
- Find New Coins
- Stake + Compound
- Discard Existing Holdings
- Take Profit
Now, let's dive into each one in more detail👇
9/➮ Rebalance
✧ The most important part is proper rebalancing
✧ Rebalancing means buying and selling assets to maintain the % alloc
✧ So, imagine ur meme gave u 1000x, and now it’s 20% of ur portfolio
✧ But target is a max of 5%, so u need to take profits & rebalance it
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10/➮ But when to rebalance?
✧ There’s a main question to ask yourself to determine if you need to rebalance:
✧ "Would I buy this coin from the market right now?"
✧ For example, would you buy $SOL at $240 rn?
✧ No? Then why are you holding it in such a large %?
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11/➮ Find New Coins
✧ Constantly be on the lookout for new trends, projects, and short on-chain plays
✧ Catching a narrative early can bring 1000x profits
✧ That’s why it’s important to divide your assets properly between long-term holdings and short on-chain plays
12/➮ Discard Existing Holdings
✧ Regularly clean your portfolio by removing existing holdings that no longer make sense
✧ Sell off old coins, outdated trends, or those with a high FDV
Essentially, this means getting rid of projects u've held for a long time with 0% profit
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This is the foundation of building your portfolio that will help you consciously manage it
✧ But I recommend diving deeper into different diversification strategies, Cherrs! #AltcoinStars
