Cryptocurrency Portfolio & How to Build It by Jake Ryan Ascent Publication

Fecha de publicación: 18 - 10 - 22



Delta not only provides a very user-friendly crypto tracker, it also allows users to track a wide range of assets including fiat currencies, stocks, bonds, futures, and ETFs. First, you’ll need to select a good portfolio tracker that best suits your needs. Below we’ve outlined the top crypto portfolio trackers, although it’s best to get a feel for the platform before diving in. Governance tokens offer holders voting powers and a share of the project’s revenue.

Having clarity about your thought process helps you churn out profits and prevents you from making hasty decisions. Balancing and diversifying your crypto portfolio is another good strategy that you need to consider for long-term growth and sustainability. You can make use of crypto portfolio trackers to monitor the daily price, volume, and market cap of assets in your portfolio. If you do not wish to invest all your savings at once, you can opt for Dollar-Cost Averaging and systematically build your portfolio. However, do your own research on cryptocurrency coins and tokens you want to invest in. The best crypto portfolio allocation strategies will also look to dedicate capital to growing trends and markets.

Examples of crypto portfolio trackers

Avoid investing in crypto projects where it is prohibited, and focus on places where crypto innovation is encouraged and therefore expanding. CoinMarketCap is a hugely popular price tracker that’s developed its own portfolio feature. The portfolio tracker is available for free on desktop and mobile devices. To use the portfolio tracker, you need to add in your holdings manually as it doesn’t connect to your wallet or exchange. There’s also the option to add in the prices you bought at to track your gains accurately.

What is best for you will depend on your risk profile, but there should be a balance. Additionally, it takes more work and study to manage a diverse portfolio. You need to know what you are buying in order to make wise investments.

The Binance Ecosystem

The exception is Polygon, which has close ties to the Ethereum community and runs an Ethereum Virtual Machine. Overall, the portfolio is susceptible to correlated risks based on its strong ties to Ethereum. There are several cryptocurrencies devoted to providing more privacy BNB in the transaction.

The biggest benefit of a well-balanced crypto portfolio is that there’s less risk. When you have a diverse portfolio, you’re not tied to the success or failure of any single cryptocurrency. Some of the most successful crypto projects are blockchain networks that can run smart contracts. There are all kinds of ways smart contract blockchains can be used, including launching decentralized apps and new crypto tokens, so this is a competitive space. A simple option is to allocate your funds between the cryptocurrencies with the largest market caps. For example, you could stick to the 10 or 20 largest cryptocurrencies.

  • This includes new and speculative coins but occasionally has the added benefit of huge moves to the upside.
  • In your crypto or blockchain portfolio, you can diversify across different coins, industries, and investments like physical real estate.
  • For example, many top-trending crypto assets have since dropped more than 90% from the all-time highs that were achieved during the most recent bull market.
  • How much your portfolio is worth depends entirely on the current market price of all the cryptocurrencies you own.

However, if you want to buy something else with the Uber token, you’d have to first swap it for fiat money or a crypto-coin. Security tokens, on the other hand, can be used for a wide range of purposes providing the company adheres to all legal standards. The capacity to provide tokens as a digital representation of shares of a company’s equity is the most promising of these characteristics. Units are often referred to as tokens or coins, while the word “altcoin” is also frequently used. If something goes horribly wrong, your positions shouldn’t have any serious repercussions for you.

Portfolio diversification isn’t a new concept—it’s a fundamental principle of investing. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Tokens based on a blockchain, NFTs are used to guarantee ownership of an asset. Chain Debrief’s vision is to help everyone make sense of the blockchain technology.

Successful gaming projects are enjoyable and have reasonable minting and burning mechanisms to support their current market value. An example of this is Gods Unchained token – a blockchain-based gaming token rewarded to players who win duels against others in a Hearthstone-like trading card game. Although you won’t get the maximized results of one skyrocketing stock, your portfolio won’t experience its risky ups and downs either. That’s why you should only invest the amount you’re ready to lose, especially because crypto is a highly volatile asset at this time.

What is the best crypto portfolio tracker?

While there are several options available for investors, CoinLedger’s portfolio tracking and tax reporting platform is rated highly on third-party review sites and trusted by more than 300,000 investors.

While it’s good to have a well-balanced portfolio, it’s also time-consuming, which is the main drawback. Finding the right cryptocurrencies, deciding on asset allocation, and rebalancing your portfolio all take time. And, since the market is so volatile, a diversified crypto portfolio is no guarantee of success. For investors used to the stock market, cryptocurrency diversification presents new challenges.

How to Diversify Your Crypto Portfolio (+ Example Portfolios) in commercial real estate can give you cash flow, strong wealth stability, and diversification. See example below which visualizes two portfolios purchased in Aug 2021 and held for 1 year. The first is a portfolio of just Bitcoin, while the second is a portfolio diversified equally across Bitcoin, S&P 500, 10-Yr Treasury Bonds, a Commodities Index, and Real Estate. Or maybe your portfolio is weighted toward Ethereum, or another cryptocurrency. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

  • You can make use of crypto portfolio trackers to monitor the daily price, volume, and market cap of assets in your portfolio.
  • HoneyBricks is on a mission to unlock the potential of real estate investing.
  • What is best for you will depend on your risk profile, but there should be a balance.
  • The team at Tamadoge aims to offer their gaming platform alongside immersive experiences.

Your positions should not cause you serious consequences in case things go terribly wrong. Ensure you stick to GAL a regulated and that the security behind the wallet you choose is of high standards. It’s important to first establish what level of risk you are willing to take, and plan your portfolio accordingly. Real estate is the world’s biggest asset class, estimated at over $300 trillion dollars.

What share should crypto have in your entire portfolio?

Diversifying your crypto to such locations exposes you to better profit margins than investing in only one area. Like any other investment, cryptocurrency values appreciate and depreciate depending on varying market trends and positions. Investing in only one cryptocurrency exposes you to significant investment losses if and when the markets crash. Exposure to newly launched and small-cap projects might be considered too for maximum upside potential. Tamadoge is a popular option here, which was recently listed on the OKX exchange after raising more than $19 million in presale funding.

In the following sections, we’ll discuss how you can crypto portfolio example a diversified and balanced crypto portfolio that will ultimately minimize risk and enhance your long-term profits. From thoughtful diversification to asset allocation to buying your cryptocurrencies, the road to building a balanced crypto portfolio is not a complicated one. It will require some upkeep though, so be sure to factor in that you will need to balance your portfolio regularly. A diversified crypto and blockchain portfolio can benefit from the sector’s growth while potentially experiencing less price volatility. Investors can use diversification strategies to accomplish a myriad of investment goals, ranging from income generation to inflation hedging to capital appreciation. Part of the excitement of investing in crypto is looking for those smaller diamonds in the rough.

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Decentralised apps build on top of these platforms, providing security and interoperability. Popular projects like Cardano, Solana, Avalanche, Near, Algorand, Elrond, Fantom, and Polkadot have experienced incredible growth over the past few years. HODLing is when an investor buys a coin and holds it for the long term. Whether the price rises or falls in the short term, they’ll keep ‘hodling’ their coin. While it is one of the most simple strategies, it has been one of the most successful for investors that ‘hodled’ the right coins.

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Calculating what is known as the fully diluted market cap is another way to get an idea of a cryptocurrency’s possible future worth. The overall worth of the crypto at today’s price if the whole future supply of coins were in circulation is defined as a fully diluted market capitalization. The closer your portfolio tracks the broader market, though, the more diversified it is. The majority of traders and investors want to outperform the market with bigger gains. A successful concentrated portfolio will outperform a portfolio with a high degree of diversification in terms of average returns. However, volatile assets should not be discounted as they can lead to profit.

Examples include PAX Gold which is pegged to the price of gold, while options like Tether and USD Coin are pegged to the US dollar. Allie is a financial writer, editor, and content strategist with a background in traditional finance. She has contributed to publications including Investopedia, The Motley Fool, and The Balance. Learn the basics of cryptocurrency and how to protect yourself from crypto scams with this 6-part beginner-friendly course, created in collaboration with Luno Discover. The rest of the portfolio is diversified among the other big layer 1s and promising layer 2s like Near Protocol and Metis network.

Since active portfolio management tends to monitor shorter timeframes, traders must constantly watch their holdings. Crypto investors who take an active approach also tend to use risk management tools like stop-loss, take-profit, and OCO (one-cancels-the-other) orders. An active approach to portfolio management involves constantly adjusting the crypto in your account.


Diverse crypto investments can help mitigate some of the losses that come with a Bitcoin fall, so diversification is always a good idea. Remember that balancing your portfolio entails more than just owning various coins. A little planning will go a long way toward constructing a portfolio that is appropriate for your risk tolerance. Buying your first bitcoin , ether , or any other cryptocurrency can be the first step to getting started with crypto investments. Although some investors choose to acquire and keep the most popular cryptocurrencies, others prefer to try their hand at altcoins.

These operate as “digital US dollars,” as they are worth the same as the US dollar. While it may not make intuitive sense to have asset allocation in crypto portfolios toward fiat currency, it can sometimes save you from massive losses. Entering this new and dynamic market can be scary, especially for those who are used to traditional investments like stocks and bonds. But if there is one age-old advice common to traditional and crypto assets, it’s that diversification is key to a successful portfolio. Bitcoin could be the most stable one of the over 2,300 cryptocurrencies on the market . Investing in BTC is considered a safe investment in terms of cryptocurrencies since it is the oldest cryptocurrency on the market and it keeps reaching all-time-high value.

How many coins should be in my portfolio?

Most experts agree that cryptocurrencies should make up no more than 5% of your portfolio.

If cryptocurrency maintains its current rate of growth, a small number of projects will invariably end up controlling a sizable amount of the market within their respective industry. However, you should Invest in cryptocurrencies that address real-world problems, which will lessen your exposure to unpredictable speculation. Also ensure that you thoroughly research both established and emerging industries before deciding on a coin or coins in which to invest. While a coin with a higher market capitalization is more stable and may have more solid fundamentals, a cryptocurrency with a small market cap could experience rapid growth.

Divide your investments into high, medium, and low-risk categories and assign the proper weights. Of course, a portfolio with a sizable percentage of high-risk investments is unbalanced. It may have the potential to give you greater gains, but it also may result in significant losses. Much like traditional stock portfolios, crypto portfolios can too be balanced to ensure a spread of returns and risks over the asset class. Building a diversified cryptocurrency portfolio can be done in many ways, however, in this article, we will be exploring a general approach that investors can use to build their own.

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