Experienced holders of digital currencies know that investing in only one cryptocurrency is risky. Especially if it’s not bitcoin. The fact is that the cryptocurrency industry so far can hardly be called reliable, and any altcoin can easily fall by 200-300% or even simply vanish. The only thing that helps to earn on cryptocurrencies quickly is automated trading either on Forex or cryptocurrency exchange. If you do not want to get engaged in auto trading, the only option that remains is to accumulate cryptocurrencies. To do this you need to figure out how to form a cryptocurrency portfolio.
The most often recommended standard portfolio looks like this: half of the investment should be directed to BTC, 15% to ETH, 10-15% to Ripple, buy some Litecoin and Zcash. Of course, the rest of the portfolio is of primary interest. You can also buy less Bitcoins, more XRP, etc. Some traders recommend buying more Ethereum as it is believed that the rate of this cryptocurrency can fly up to $1000. Others think such forecasts have no solid foundation. In any case, it is hardly worth composing your digital portfolio with only bitcoins or, moreover, some other cryptocurrency. It is necessary to diversify your investments.
Currently, the BTC rate is $ 9,000, but you can’t be sure that at the end of the year it will not collapse to 3-4 thousand, as it happened in 2018. Even if Bitcoin does not collapse, it may just stop at its current mark. Then investing in it will not bring any profit. That’s why you need to fill the portfolio with other promising digital currencies. On the other hand, optimism is caused by the fact that now in the world only one in one hundred people owns cryptocurrencies. It is safe to predict that in the future the number of token holders will increase. This will lead to an increase in the rate of most cryptocurrencies. If you buy a lot of different coins now, you can get significant dividends in the future.
In the cryptocurrency industry, there is a gradation of the risk of digital currencies. So, there are three major groups: with the lowest risk, these are the Top 10 tokens by capitalization, including Bitcoin, XRP, Ethereum, etc.; with medium risk – this is the Top 30 by capitalization; and with high risk – this is the Top 100. Everything beyond Top 100 can be considered shitcoins. In accordance with this, you can plan for investment. It is clear that if cryptocurrencies from the Top 10 by capitalization are included in the portfolio, then doubling of investments can be expected for a very long time. Bitcoin, Ethereum and XRP can stagnate in one place for ages without any profit. An ordinary portfolio with relatively low risk consists of 70% of the Top 10 coins and another 30% of the Top 30 coins. Such a portfolio can double for many years.
That’s why it is more profitable to compose a portfolio in other proportions, adding cryptocurrencies from the Top 100 to it. For example, a portfolio consisting of only a quarter of Top-10 tokens, 50% of Top 30 tokens, and another quarter of Top 100 tokens can be considered risky. Such proportions are most often used by experienced traders to get profit in a relatively short time. It is interesting to use the following trick: add to the portfolio half the cryptocurrencies, which usually grow with BTC, and fill the rest with cryptocurrencies, which usually fall with the growth of bitcoin. Such a portfolio is well suited for saving funds, but it is unlikely to yield significant profits.
In order to create an investment portfolio of cryptocurrencies at crypto-rating.com, you must first register on crypto-rating.com using the registration form. Then, after confirming the account via e-mail, you need to log in to the site. After that, you need to click the “Create” button in the section with cryptocurrency portfolios. Please fill in the fields “Portfolio title” and “Portfolio description”. The name and description of the portfolio should not violate the rules of the site. The portfolio description should be comprehensive and understandable. Then you should select the cryptocurrency from the list and click the green “Add button”. The cryptocurrency of your choice will appear in your portfolio. After that, you need to specify the percentage ratio (Amount,%) of this cryptocurrency in the portfolio. This step must be done for each cryptocurrency that you want to add to your portfolio. If necessary, remove a particular cryptocurrency from the portfolio, you can use the red “Remove” button. For your convenience, there is a search function in the window with a list of cryptocurrencies. If, after adding all the cryptocurrencies you selected, the “Summary” value is different from 100%, you need to edit the percentage so that the “Summary” is exactly 100%. After that you should press the blue “Save Changes” button. After checking your portfolio by the site moderator, the portfolio will appear in the appropriate section.
If you wish, you can leave feedback on the cryptocurrency portfolios of other members of our community. To do this, you need to go to the appropriate portfolio and click on the blue “Add \ Read Reviews” button. You will be redirected to the reviews page of the chosen portfolio. By clicking the green “Add Review” button, you must indicate your name or nickname in the “Author” field and write your review in the “Comment” field. Then click the “Add Review” button. After checking by the moderator, your review will appear in the appropriate section. Remember that your reviews should not violate the rules of the site.
When compiling a portfolio, you should understand how long is your investment period. If it is a month or a year, you should choose certain cryptocurrencies. And if investments are long-term, for example, for 10 years, it is better to choose other tokens. Roughly speaking, you can “invest” funds for one day, that is, simply trade on the exchange and make a profit from the difference in rates. However, this is a real job, which requires a lot of time, effort and knowledge. We are talking about long-term investments and a portfolio of at least a year. If the period is chosen, it is important to observe it in the future, that is, close the portfolio and go into profit at the scheduled time. Another thing to keep in mind is the rebalancing of the cryptocurrency portfolio. Depending on the situation, you should get rid of some assets and buy others. This is due to the need to comply with predetermined proportions of reliable and risky assets. The fact is that with long-term investment, cryptocurrencies can move from one category to another. We recommend checking the portfolio balance at least once a month, monitoring the market: buying new promising cryptocurrencies on time and getting rid of unreliable assets.
