How to manage a crypto portfolio in 2020

November 10, 2020

Reading Time: 4 minutes

As cryptocurrencies continue to revolutionize the financial industry with emerging inventions, millions of traders are making the shift towards finding financial success. A decade ago, Bitcoin led the crypto ecosystem; However, today, there are over 500 different cryptocurrency exchanges operating today with over 2000 unique cryptocurrencies listed among them.

With the introduction of newer revolutionary inventions, it is only time that the cryptocurrency ecosystem becomes the highlight of every investor’s requiem for opportunities. Cryptocurrencies are the future of investment.

As larger conglomerates and financial giants such as Visa, MasterCard, and Paypal diversify their relations with cryptocurrencies, only time could tell how much more interest and virality the cryptocurrency ecosystem can garner. Businesses of different kinds join the movement, concreting the ecosystem’s viability and feasibility for the future.

However, if you’re looking to invest in cryptocurrencies or already have, you must learn the fundamentals, the importance, and the effect of your portfolio.

 The importance of a Crypto Portfolio

The cryptocurrency market is notorious for its volatility and the last couple of years are decadent of how volatile cryptocurrencies can get. While many have made millions with an unexpected upswing, many have lost impeccable amounts in sudden down surges.

This is because the cryptocurrency ecosystem is still evolving. While traditional finance has been here for a very long time, Cryptocurrencies have yet to peak. Further factors such as the ever-growing digital nature of cryptocurrencies also play a crucial role in why the market is so volatile. Several other features such as speculators, media stories, investor profiles, and more add up to push the cryptocurrencies into all sorts of avenues.

With that said, a lot of care, research, education, information, and analysis should be taken before exposing your portfolio to cryptocurrencies. Asset holders need to keep up with the latest insights, market movements, and trends. As mentioned, the cryptocurrencies ecosystem is notorious for its volatility.

Creating a Crypto Portfolio

Certain fundamentals should be fulfilled when creating your Crypto Portfolio. The whole market is in its evolving stages even now. The market is worth around 365 Billion Dollars, according to CoinMarketCap, and Interestingly 80% of the market cap is divided among the top 5 Cryptocurrencies such as Bitcoin, Ethereum, Tether, XRP, and Bitcoin Cash.

Most investors consider the notable cryptocurrencies as safe-haven assets and expect it to bloom as a significant financial network that could eventually replace or compete with global banking systems. However, with the emergence of the crypto ecosystem, numerous investors have commenced acquiring various cryptocurrencies as a short term and long term investment.

Although if you’re unclear about the establishment, purpose, and monetary policies of unique and upcoming cryptocurrencies and are thinking of investing in Cryptocurrencies as an experimental investment to delve into the ecosystem to find out what it’s all about, then we advise you to maintain a diversified portfolio with different cryptocurrencies.

You could ask the following questions and find the answers to them:

1.What is their niche? Do they have a viable product?

2.How big is their community? Do they have a large userbase? Is their community interested and invested in the long term goals of a product?

3.What problems are they solving

4.What is their addressable market?

You could diversify your portfolio with the following types.

  • Major Currencies
  • Platform Cryptocurrencies
  • Anonymous Cryptocurrencies
  • Protocol Coins

It is essential to have a portfolio that is spread across various types of asset classes. A good portfolio may contain a mix of the mentioned types. After you’ve found the answers to your questions and invested in various cryptocurrencies, you need to manage your portfolio.

Managing your Portfolio

There are myriad tools that will aid you manage your assets. There are infinite options of different management tools in the cryptocurrency market, and choosing between them could be overwhelming. It can be challenging to locate a reliable cryptocurrency exchange with reasonable rates and more. Here are some of the most reliable tools in the market right now

Blox

Blox is a crypto asset management platform that is essential for users that hold diverse assets. It offers a simple, interactive, and immersive user experience to its users. And the sky’s the limit for their functionalities. Blox goes above and beyond by offering services such as:

  • Auditing and filing cryptocurrency taxes.
  • Asset Tracking
  • Accounting
  • API with support for every popular exchange and major Blockchain solutions

Binance

Binance is one of the many platforms that continue to grow and extend its branches into various innovative fields that emerge in the industry. Binance holds the cryptocurrency ecosystem’s throne by leading trading volumes, offering versatile trading pairs, being compatible with FIAT currencies, and continuing to produce innovative products.

With its impressive user experience, Users can enjoy powerful tools without any hassle. It has means for a diverse group of traders varying with complexity. Traders can participate in Binance Futures contracts, Binance Margin trading, Limit Orders, Stop-losses, and more. Binance also offers traders with the ability to

  • Trade cryptocurrencies
  • Buy Cryptocurrencies
  • Lend Cryptocurrencies
  • And Stake Cryptocurrencies

Delta Portfolio

With millions of downloads circulating across various platforms, The Delta Portfolio App has become a staple in the list of cryptocurrency portfolio tracking apps. The app includes but is not limited to:

  • Technically advanced Charts with coin analysis, volume, market Cap, etc.
  • Support for Separate portfolio tracking, including a watchlist.
  • Sophisticated price action alerts for diverse assets
  • Communication tools for cryptocurrency project
  • Integration with various social media channels
  • Account recovery

The Delta Portfolio App also offers a subscription-based package bundled with additional functionalities called the Delta Pro.

BlockFolio

The BlockFolio platform is home to over 5 million users that intensively use the app to manage their cryptocurrency portfolio.s With over 400 indifferent teams on their Blockfolio Signal, including various teams from notable cryptocurrencies such as Monero, DASH, Neo, Ehteruem, NEM, Zchas, 0x, etc.

With no ads or hidden costs, the Blockfolio tracking app allows users to get Real-time signal updates and pricing into respective slack groups. They also enable users to operate multiple portfolios, each with unique notification alerts on price levels.

The Blockfolio app has impenetrable security measures such as secret Pins for added security and recovery options and transfer options so users can quickly transfer or recover their data. With the support of over 8000 coins and across 300 exchanges, Blockfolio is entirely free of charge.

Conclusion

Several fundamentals are worth spending time managing your cryptocurrency portfolio, such as researching various assets, analyzing exchanges, monitoring trends, establishing profit targets, structuring your investment portfolio, and choosing assets.

However, to cover more extensive ground, it is essential to utilize sophisticated tools to withhold your base and steer your way to financial success.

Integrating tools such as tracking platforms, apps, wallets, and more can simply the process of managing your cryptocurrency as well as enable you to access sophisticated tools.

 

1 Comment

  1. Kaizen System

    Twoje ĹĽycie staje siÄ™ lepsze, tylko gdy Ty stajesz siÄ™ lepszym. – Brian Tracy

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