One minute to understand fund allocation and position strategy
For investors who are new to the cryptocurrency circle, the reasonable allocation of funds and position management are the key to achieving stable returns. The following is a recommended position allocation plan based on the size of your funds:
100,000 principal: It is recommended to select two or three currencies that you think have growth potential and hold them together. This can reduce the complexity of diversified investment and allow you to focus more on the dynamics of a few projects.
200,000 funds: With the increase in funds, you can consider adding two or three more currencies, but make sure that each choice is well thought out and avoid blindly following the trend.
500,000 investment: When the funds reach 500,000, you can increase your position to five or six currencies. But please note that an increase in quantity does not mean an increase in returns. The key lies in whether you have enough ability and time to manage these positions.
Million-level funds: If your funds reach the million level, it is recommended that you allocate your funds to eight to ten currencies. It is still crucial to avoid greed and over-diversification.
Ten million level asset allocation: When you have tens of millions or more funds, although eight to ten currencies may be enough, you should pay more attention to the overall allocation and risk management of assets. Make sure that even if some currencies fluctuate, the entire investment portfolio can remain stable.
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