Bitcoiners, Here’s How to Lower Crypto Investment Risks with Balanced Portfolio

2018-10-27 21:32

A cryptocurrency investment portfolio is something that anyone can put together. Of course, those who do decide to go forward and develop an investment portfolio should understand that it takes some time to understand what one is doing and to identify the right investments.

Right now, the cryptocurrency market seems to be performing solidly and has provided investors with a decent rate of return in the past year convening various projects. According to one source, those who had invested $100 USD in January would have earned $1,000 USD by now. Ideally, it is best to do the math and to determine the validity of that investment mark.

Those who are interested in investing may want to consider a long-term investment approach. Over time, it is expected that the investment will grow and lead to positive returns.

Here are a few benefits that come with a long-term investment strategy:

Low Trading Fees

Crypto investment comes with exchange fees when one trades or buys cryptocurrency from a platform. The trading fees eventually reduce profits, so it is important to be wary of how much one is paying in fees and how often the fees kick in. Due to the fees, it is best to do one or a few investments and to leave it there over the long term.

Lower Risk

There are some that also believe that a long-term investment leads to lower risk. Long term investment plans give investors the opportunities to go in and out of the market at the right time, which seems to make it a lot easier.

Long-Term Viability

Another consideration to take into account is the long-term viability of the investment. There are a few indicators to take into account when assessing the long-term viability of an investment:

Market Share

First, look at the market share capitalization for the particular cryptocurrency that one is interested in. The higher the market share rate, the more it suggests that the cryptocurrency is a dominant one in the market. For example, Bitcoin (BTC) has a high market capitalization in the crypto space. As a result, having bitcoin in one’s portfolio can lead to success.

Transaction Volume

Second, it may be good to look at the investment volume. The transaction volume can fluctuate on a daily basis, so long as the trend continues, it may be best to keep the cryptocurrency in one’s portfolio.

Utility Value

Third, the utility value of a cryptocurrency involves determining whether the cryptocurrency will be a part of the market for years to come. It is also important to assess whether the cryptocurrency is important in today’s market. Some cryptocurrencies have a utility value that relies on developers creating a decentralized application on the blockchain and as a result, this will increase utility value.

Technology Compliant

Fourth, determine whether the cryptocurrency is technology compliant. Technology development is an important factor to look at because it helps show whether the cryptocurrency will survive in the market.

Portfolio Construction

Fifth, portfolio construction is another factor to assess. Portfolio construction involves determining what percentage of the cryptocurrency has in one’s portfolio and that factors into the risk level or tolerance toward the risk. Keep in mind that when constructing one’s portfolio, it is imperative to do research and to determine which cryptocurrencies should be a part of the portfolio and how much of a place they should hold.

Neutralizing Volatility

Sixth, it is important to recognize that the cryptocurrency market is speculative and volatile. Thus, it is useful to have a portfolio that can withstand the volatility. For instance, bitcoin is known to withstand volatility well. By neutralizing the volatility with various cryptocurrencies, investors have positive potential of receiving investments form new traders. Some tend to choose 50 percent of bitcoin and 50 percent of altcoins for their portfolio to avoid volatility.

Overall, investing in cryptocurrency is a big decision and one should do so carefully and with adequate research. Further, take note that the article is not meant to provide investment advice. Investors should do their own research by reviewing, analyzing, and determining whether an investment is right for them and whether a strategy identified in any news source is a viable approach. This article is not investment advice or guidance and should not be construed as such.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Intelligent Investment Chain (IIC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -79.71 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0003642 (-100%)

portfolio investment right cryptocurrency understand one should

portfolio investment → Результатов: 61


Investment Portfolio Diversification Using AI: Risks and Benefits

Broadening an investment portfolio by trading across multiple asset classes is a tried and true method for managing risk and opening the door to additional market opportunities.   While portfolio diversification can be performed manually, with the massive growth in mainstream access to artificial intelligence (AI)-based bots, investment portfolio diversification using AI has surged in popularity.

2024-2-7 10:13


Фото:

TD Ameritrade Plans Integrated Physical Bitcoin Futures In New Partnership

US broker TD Ameritrade has confirmed it is rolling out a more comprehensive cryptocurrency trading portfolio in what mainstream media describes as the firm going “full crypto. ” Client Demand Behind ErisX Investment TDA, which was one of the first finance giants to offer Bitcoin futures trading, plans to enter into a strategic investment with exchange ErisX along with Virtu and DRW Holdings.

2018-10-5 20:00


Фото:

Stackr: The Dawn of a Digital Asset Savings Solution - [BTC Media Sponsor]

Financial savings have long been the foundation of wealth and asset building. However, we are now in a time when the growing obsolescence of financial institutions has forced certain technologies out of date, created high fees, revealed structural inefficiencies and, ultimately, meant that some standard investment solutions now fail to place consumer needs first.

2018-10-6 16:37


ELAD ICO

ELAD (Equity Ledger Assets Decentralized) is a decentralized blockchain that aims to transform investment strategies and the real estate market. Using blockchain technology, smart contracts and innovation, the equity ladder of ELAD will create a crypto and real estate portfolio to combine the liquidity of the world’s biggest asset class with the velocity of the newest.

2018-9-5 08:07


Фото:

How a Finnish millionaire lost $35M worth of Bitcoin in a gambling scam

Is your cryptocurrency portfolio looking a little light lately? That’s nothing compared to one Finnish investor, who lost 5,500 Bitcoin ($35 million) to an investment scam this year. Bangkok Post reports that businessman Aarni Otava Saarimaa was approached by a group who sought to link him up with some hot investments: shares in a few high-profile companies and a cryptocurrency called Dragon Coin.

2018-8-13 13:05


Intelligent Trading: Cryptocurreny Trading Signals & Insights?

Finding investment opportunities in the cryptocurrency sector is quite easy, but the real challenge comes when you want to build a lucrative portfolio. You will need to spend a lot of time and effort researching all the various options as you go through the unregulated and untamed crypto ecosystem. Fortunately, you can now utilize a […]

2018-7-18 13:06


Фото:

Cryptocurrency Rebalance Portfolios Outperform ‘Hodling’ according to Studies

Finance Shrimpy cryptocurrency portfolio management is a platform that helps investors curate a portfolio with automated investment strategies. With the company’s portfolio experience, the Shrimpy team published a study that gives an informative technical analysis comparing two types of cryptocurrency investment methods: rebalance against holding (hodl).

2018-7-14 19:14


Фото:

Study Finds Cryptocurrency Rebalance Portfolios Outperform ‘Hodling’

Shrimpy cryptocurrency portfolio management is a platform that helps investors curate a portfolio with automated investment strategies. With the company’s portfolio experience, the Shrimpy team published a study that gives an informative technical analysis comparing two types of cryptocurrency investment methods: rebalance against holding (hodl).

2018-7-14 17:05