This week we take a look at investing in cryptocurrency and building the right cryptocurrency portfolio. This involves picking the right coins from a list of over 2,000 coins and tokens available on the crypto market.
Basic Rules
While making a choice of what cryptocurrency to add to your holding portfolio, it is important to note these:
- A basic crypto rule advises that at least 30% of your portfolio holdings should be in Bitcoin (BTC); while altcoins make up the rest.
- Do not hold shit coins: A lot of hype projects and ICOs have been made; the effect of this could be misleading. So always stick to coins with the long term value, and this will require you to Do Your Research before buying any altcoin.
- Buy the Dip: While building your cryptocurrency portfolio, it is wise to take advantage of the dip in prices and stack up for the bull runs. This helps you stay ahead, saves cost and is a great feeling knowing you got in early.
How Do I Avoid Shit Coins and How Do I Pick Good Coins?
- First, Always Do Your Research
- For every coin look closely at the founding company and development Team (CEO, backers, and partnerships).
- Go for coins with use cases: Coins which offer utility, have a need or solve a problem.
- Study coin patterns and check metrics: Like All-time high, dip, market cap, and volume
- Check the coin’s product
- Coins which solve scalability and interoperability problem relative to BTC; are also good holds
- Get acquainted with the crypto community of your choice tokens
- Keep your ears down for crypto info, news and developments around your choice projects
