Properly invested $5k-$10k now = $million+ in 2025.
But most will end this bull run with $0 cause they don't know how to build a successful portfolio.
Here's my mega-thread on how 👇
Before I begin, I have a favor to ask...
I spent a lot of time writing this thread, trying to make it genuinely useful for you, so if it's not too much trouble, please bookmark it, retweet, leave a comment, or simply hit like 🤍🚨
1/➮ In this thread, we will go through the 3 main aspects of a successful portfolio:
1. Risk management
2. Managing your portfolio
3. Taking profits strategy
Let's dive in👇
2/➮ Creating a Risk Management strategy
✧ The first thing to understand when creating such a strategy, u don't need to be profitable in every TX
✧ With proper risk/reward, u can lose in 9 out of 10 deals, and yet this 1 successful trade out of 10 will bring you into profit
3/➮ Overall, this means that you should treat losses as part of the journey and that with the right strategy, you will still be in profit
✧ The first step to successfully implementing such a strategy is diversification
The main thing is not to do over or under diversification
4/➮ Therefore, I recommend having at least 30% in blue chips, with 15%-60% in stablecoins
✧ Everything else depends on you
✧ Choose projects considering narratives and the state of the current market
Let me explain👇
5/➮ If the market is bullish, having exposure to more assets is generally advantageous, but you also need to be careful not to lose track of your investments
✧ In a sideways market, it's better not to do this and to invest in projects you are confident in, focusing on quality
6/➮ Managing ur portfolio
✧ Properly managing ur portfolio is key to success in crypto
✧ What your management should consist of:
- Take Profits
- Rebalance strategy
- Find new projects
- Stake and compound
- Discarding existing holdings
Now about the most important ones👇
7/➮ Taking Profits
✧ Taking profits properly is key to successful portfolio management
✧ You should consider:
- Time zone
- Risk/reward
- Financial goals
Now I will share with you my strategy for how to take profits
8/➮ I prefer to take out my initial investment when a project does 2x and then continue holding depending on my belief in the project
✧ This way, I lose part of the profit but reduce the risk of losing everything
✧ Ofc, I apply this strategy to more risky plays
9/➮ Also remember that 30%-60% of your portfolio should be in stables
✧ Why? To buy the dips/stake/farm
✧ I do this by taking profits on the way up and farming stables in the meantime
✧ When I deploy, I restock stable at the next best chance to earn
10/➮ Staking
✧ To find good staking options, monitor Twitter, YT, etc.
✧ Remember, staking requires time to manage fluctuating rates
✧ Allocate weekly time to optimize to manage your LPs and farms to ensure you’re compounding
11/➮ Rebalance strategy
✧ Rebalancing is probably one of the most complex aspects of a successful portfolio
How do you use it?
✧ Suppose you bought two coins for $100 each, which are now worth $1k for the 1st and $10 for the 2nd
This is where we would use rebalancing
12/➮ As coins rise or fall, so does your risk/reward ratio, which is why we use rebalancing
✧ In the situation I described above, you have two choices:
- Leave everything as it is
- Transfer part of the first token into other options
Now, it’s all about opportunity cost
13/➮ Always remember that holding a coin is the same as buying it
That is, if you hold $SOL worth $190, it's the same as being willing to buy it now at $190
Ask yourself this question when you're rebalancing
14/➮ This is the basis of what you should do when creating your portfolio, but remember to DYOR
If you want to delve deeper and explore more diversification strategies, etc.
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