Cryptocurrency portfolio or traditional investor tool

The issue of risk diversification has become rather essential as a result of the formation of a large number of assets in the crypto market from which you profit from trading and investing.

Indeed, after many investors who have entered the cryptocurrency market have tasted the bitterness of disappointment rather than the sweet taste of victory, the majority of them have begun to look for ways to limit their losses. At the same time, many people have discovered a way to not only avoid dangers but also dramatically raise rewards from their monetary investments. This possibility manifests itself in the shape of a traditional investing tool: the investment portfolio.

For many years, numerous traders and investors have used investment portfolios in the stock, currency, and commodities markets. Nothing else has ever provided a stronger assurance of investment protection. Because the investment portfolio safeguards against a lack of liquidity. This is currently visible in the case of bitcoin and ethereum. Furthermore, having an investment portfolio helps to lessen the likelihood of risk. There has never been a time when all firms performed poorly. Furthermore, even throughout the Great Depression, there were businesses that not only survived but even profited, benefiting their stockholders. As a result, you should invest in more than one cryptocurrency. After all, it’s impossible to predict which will expand quicker than the others and which will lose investor confidence.

It is worth noting that a well-diversified investment portfolio boosts results. And in this scenario, it all boils down to market dynamics. In contrast to one of the cryptocurrencies in which you have invested yielding a 50% return, another currency can yield a 200–300 % return at the same time. Having a currency like this in your portfolio boosts your chances of being in the right location at the right time.

Additionally, a formed investment portfolio guarantees a rational use of capital. In other words, with an equal ratio of funds between the assets, the money in your deposit will not remain idle. It will be in action every second, bringing you maximum benefit.

Several fundamental guidelines highlight the significance and benefits of employing portfolio investment technology. To begin with, as the phrase goes, “don’t put all your eggs in one basket.” Look for extra chances in the market for yourself regularly; only these will make your investments as profitable and safe as possible. It is also critical to be able to wait. Allow earnings to grow and wait for the market to give you the greatest profit before closing trades. Finally, remember to always keep a reserve. Don’t overburden your investment account with a slew of trades. Allocate funds equally among your assets, do not put more than 10% of your total investment into the work, leaving 90% for possible “drawdown”.

Famous portfolio investors should also be mentioned. For example, consider Warren Buffett, a man who made his wealth by investing in entire stock pools on the New York Stock Exchange, earning over $85 billion. George Soros is also well-known as the owner of several hedge funds with well-defined investment portfolios that include equities, commodities futures, and currencies. His assets are believed to be worth $29 billion. Benjamin Graham is another fascinating individual. His name has become synonymous with the development of a new sort of investor. Thanks to his book The Intelligent Investor, the world gained new professionals who invested in the stock market based on a company’s numerical performance.

Furthermore, as a result of him, investors have grown more productive. We might argue that, according to Graham’s theory, the concept of using portfolios became more logical, as investors began to not only hope for results but also to be able to calculate them. Warren Buffett is Graham’s most famous student!

Finally, if you want to get the most out of your investments in bitcoin, ethereum, or other cryptocurrencies, don’t stick to just one. Choose a few cryptocurrencies and tokens that piqued your interest during the ICO and add them to your investing portfolio. Good luck with your investments!

The cryptocurrency field is changing rapidly, constantly improving and introducing new technologies. As a result, it is not uncommon for people who are completely ignorant about the industry to become confused or baffled by these new technologies. The bit4you trading platform, aiming to help all those who want to learn the intricacies of the cryptocurrency market, has launched an educational section under the name “Academy”, where you will learn many useful things that will allow you to reach a higher level of knowledge. To get all the necessary knowledge, the platform offers a demo mode, with the help of which you will risk-free try out various trading techniques and understand the market, getting $100,000 virtual funds into your account. There are more than 40 assets in the bit4you platform, so you can get good practice with them. Stay up to date with bit4you news, then you won’t miss anything significant!

Tatiana Leverya, Team bit4you.