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Stephen Dalton Follow Apr 23
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Many investors get inundated with all the hype on YouTube, Reddit, and other social media platforms screaming about “the next great thing in crypto,” “this will replace Bitcoin (BTC),” or “this two-cent altcoin will replace Ethereum (ETH) by 2025.”
They buy into the hype and the altcoin many are screaming about without doing any research, then they buy the coin, typically at its all-time high (ATH), and then end up selling it after it comes crashing back to earth like a SpaceX test flight.
Building a killer cryptocurrency portfolio can be challenging with so many digital currencies available.Everyone has heard the sage advice, “Don’t put all your eggs in one basket.”
So, they think they must have some real estate, precious metals, stocks, etc.Whereas that’s not a bad strategy, you must also spread your investments across many cryptocurrencies.
Sure, buying BTC and ETH is too expensive, but who says you can’t buy $10 worth of each? You can buy Satoshis.You can own parts of an ETH altcoin.
If you have an investment strategy, you can find an exchange to satisfy your goals.Who’s to say what will happen in the next bull run? Your $50 worth of ETH could 100X.
Whereas it might not make you a crypto millionaire, $50 worth of Shiba Inu created more than one crypto millionaire in the last bull run.
However, what might be more crucial is to have an exit strategy.Paper profits don’t pay the rent.
Don’t be greedy.If you believe the stories, more than 77% of the crypto millionaires have dropped out of that distinction since November of 2021.
Withdraw what you need to build a new house, buy a new car, or take a vacation.
A Day in the Life of a Crypto Millionaire | A SIDE OF ME YOU’VE NEVER SEEN! Don’t believe the hype.
This video was uploaded to YouTube by Crypto Banter .
Five Steps to a Killer Cryptocurrency Portfolio Below are five key steps to creating an excellent cryptocurrency portfolio.
Establish Your Goals Before you start investing in cryptocurrencies, you need to establish your goals.
Are you looking to make a quick profit, or are you in it for the long haul? Do you want to build a diversified portfolio or focus on a particular currency?
By answering these questions, you can clearly understand what you want to achieve, which can guide your investment decisions.Remember, they’re your “eggs,” so if you want only BTC, ETH, only decentralized finance (DeFi) altcoins, or all artificial intelligence (AI) coins, that’s up to you.
Develop a Strategy Once you’ve established your goals, it’s time to develop a strategy.
One popular approach is dollar-cost averaging (DCA), where you invest a fixed amount of money at regular intervals.This helps reduce the impact of volatility on your portfolio and ensures that you take advantage of opportunities.
Let’s say you can only afford $100 per month.For example, you could buy $10 worth of ten coins monthly.This can help reduce risk and ensure you’re not overly exposed to a single currency.
Consider investing in different altcoins, such as privacy coins, P2E tokens, or smart contract platforms, to diversify your portfolio further.
Crypto Portfolio 101: Beginner Tips For MAX Gains!! 📈 This video was uploaded to YouTube by Coin Bureau.If you found value in it, go to YouTube and like or subscribe.
Use a Killer Cryptocurrency Portfolio & Tax Tracker As you start investing in cryptocurrencies, keeping track of your portfolio’s performance is essential.
A cryptocurrency portfolio tracker can help you monitor your investments, track your gains and losses, and identify trends in the market.This can help you decide when to buy, sell, or hold your assets.
One of the most-trusted crypto trackers on the market is Coin Ledger with more than 400K users.You can quickly import transactions from exchanges and wallets, preview the report, and generate a tax report, even if you’re an Expat living overseas like me.
Likewise, it will make it much easier to file your taxes at the end of the year.
Believe me, the IRS is watching you.Any buy, sell, or trade could be a taxable event.
Even if you use your DOGE coins at Petco to buy dog food, it could be taxable.
Always consult a tax advisor and let a professional do your taxes.You might be able to claim the expense next year.
Buy Different Types of Altcoins to Diversify Your Portfolio Bitcoin is the most well-known and expensive cryptocurrency but only one of many options.
There are nearly 20,000 altcoins, each with its unique features and benefits.Investing in different types of altcoins can further diversify your portfolio and potentially increase your returns.
Doing your own research (DYOR) before investing in any altcoin is essential.Many cryptocurrencies are highly speculative and can be risky investments.Ensure you understand the technology behind each coin, the team behind the project, the tokenomics, and any potential risk before investing.
Additionally, read Tom Handy ’s article, 4 Essential Things a New Person Must Know When Investing in Cryptocurrencies , to get more information about this topic.
Ledger Nano X Coxmic Purple.DO NOT Leave Your Killer Cryptocurrency Portfolio on the Exchange Always DYOR, never use money you can’t afford to lose while investing and purchase a trustworthy “cold wallet” to hold your private keys.
The most popular is the Coxmic Purple Ledger Nano X with Bluetooth .
Don’t be lazy and leave your valued NFT trading cards and P2E tokens on an exchange.That’s equivalent to leaving them in a box.The house or exchange could burn down, get hacked, or go bankrupt.
Yes, your house could burn too.But with a Ledger Nano X, if you lose it, just buy another, input the keys, and you still have access to your NFTs and P2E tokens.
Chainalysis identified $3.8 billion in cryptocurrency hacks last year, which is 15% up on 2021 ($3.3 billion) and dramatically up on the $0.5 billion stolen in 2020.— Kiplinger .
“As an Amazon Associate, I earn from qualifying purchases.”
Final Thoughts About Creating Your Killer Cryptocurrency Portfolio While cryptocurrencies have the potential for high returns, they also come with a significant risk of volatility.
The value of digital currencies can fluctuate rapidly and dramatically, which can result in significant gains or losses.
Therefore, it’s crucial to DYOR.“Don’t believe the hype” and only invest money you can afford to lose.
Don’t invest your life savings or money needed for essential expenses like rent or bills.
Note: This post contains affiliate links.Read my disclosure statement for additional information.
About the Author Photo by Jean Springs from Pexels.Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor.Also, a Top Writer in Nutrition, Investing, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.
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