The best crypto portfolio. What is it, and does it even exist? This is a question that all of us investing in the cryptocurrency market have thought about at one point or another. Which projects such we buy, and which ones should we avoid? Should we maintain a highly-concentrated or well-diversified portfolio? How many coins are the right about to own? Is it better to invest in safer projects, or take on more risk? Are you hoping to simply HODL, or also earn a passive income? These are questions that you need to be asking if you want to have any chance at being successful in the crypto space.

The first factor you need to know is that everyone's situation is different. This means that what is perfect for you, may not be a great fit for someone else, and vice versa. Things that could have an effect on your portfolio are your current financial situation, future goals, age, and health, if you have a family, appetite for risk, and the list goes on.

In the following, I will be talking about my own crypto portfolio. It has worked perfectly for my own needs and could be a good example for you. But it's only an example, and you need to make the decisions for work best for you.

High concentrated

The first decision that I made was that I much prefer to have a highly concentrated portfolio. This means that I keep a very small amount of crypto projects in my portfolio; focusing on a very select few.

When I first began buying crypto, I kept an overly-diversified portfolio. During this time 1 found it took much longer to accumulate substantial positions in projects. I also ended up owning a lot of junk that I didn't have confidence in.

Therefore I filtered my portfolio down to only a few projects with most of the focus being on Bitcoin and then Ethereum. Not only did it allow me to accumulate at a faster pace, but my profits increased as well. Sometimes having a highly-concentrated portfolio gets a bad reputation. But I just view it as having much more confidence in certain projects.

Sticking to the blue-chip cryptocurrencies

Most people forget how risky the cryptocurrency market is. The truth is that it is the most volatile financial market that you can invest in. Only a select few projects have real merit and will likely be around for the long term. For every Bitcoin and Ethereum, there are thousands of projects that are junk and get-rich-quick-schemes. Unfortunately, it is your job to be able to differentiate the two.

With that in mind, my focus has always been to accumulate as much Bitcoin and Ethereum as possible. In my opinion, thos are the only two assets that matter.

Together they make up over 95% of my cryptocurrency portfolio. While many people in the crypto market view them as conservative investments that are near the top of their price potential. The truth is that the crypto market is still incredibly young, which gives these two projects a lot of room to run.

With the remaining 5% of my portfolio, I do take on some risk. Particularly in projects that I'm a fan of the technology or ambition. But I still stay far away from meme projects, even if it means on missing out on potential short-term profits.

Long term

I choose to take a long-term approach to my portfolio. I'm not concerned about short-term price movements, or even making short-term gains. I'm more concerned about maintaining value and building a portfolio that stands the test of time. While meme projects like $PEPE and $FLOKI have been soaring recently. Most people probably wouldn't have a large amount of confidence that they will still be around ten years from now. You wouldn't invest in penny stocks expecting them to become the next Apple.

In the past, I was a fan of lending out Bitcoin to earn a passive income from services like BlockFi, Celsius, and Nexo.

However, due to recent events that is no longer something I would recommend. It is similar to picking up pennies in front of an oncoming freight train. It just isn't worth it, especially when you are holding onto an asset that could someday be worth millions. Instead, my focus has shifted towards taking self-custody and surviving the market.

Safe passive income

While my focus has shifted to surviving the market, that doesn't mean I have given up on earning a passive income with my crypto. I now focus on staking through blockchain protocols that allow me to retain custody. Staking projects such as Ethereum, Polkadot, ICP, and the list goes on. There are still ways to make incredible passive income in the crypto market, but you just need to be very responsible about it.

$This is my crypto portfolio strategy, but it doesn't mean that it is the best for you. The truth is that there is no perfect crypto portfolio. The market is still incredibly young, and no one knows for sure where we'll be ten years from now.