Each trader or investor will have their own thoughts about what constitutes a well-balanced cryptocurrency portfolio. However, there are a few general guidelines to keep in mind:
1. Divide your portfolio into three categories: high-risk, medium-risk, and low-risk assets, with suitable weightings for each. A portfolio with a significant component of high-risk investments is unbalanced. It has the potential to offer you with larger gains, but it also has the potential to cause you to lose a lot of money. What’s best for you depends on your risk profile, but there should be a balance.
2. Consider holding some stablecoins to boost your portfolio’s liquidity. Many DeFi platforms use stablecoins, which can allow you to lock your winnings or exit a position fast and easily.
3. If necessary, rebalance your portfolio. The cryptocurrency market is quite volatile, thus your judgments should be based on the present scenario.
4. Make strategic capital allocations to avoid over-investing in any one aspect of your portfolio. It’s tempting to put more money into a coin if you’ve lately earned huge gains from it. Don’t let greed get in the way. Instead, consider where the money could be better spent.
5. Do your own research. You can’t go wrong with this timeless bit of advice. Because you’re investing your own money, don’t rely on the counsel of others.
6. Only put money into investments that you can afford to lose. If you’re anxious about your portfolio, it’s not balanced properly. In the event that something goes horribly wrong, your stances should not have major ramifications for you.
A portfolio tracker is a tool or service that helps you to keep track of your investments. You may track your progress and observe how your current allocation compares to your long-term goals. Here are a few ideas that you might want to think about:
CoinMarketCap is a well-known price tracker with a built-in portfolio option. The portfolio tracker is free and available for use on both desktop and mobile devices. Because the portfolio tracker does not connect to your wallet or exchange, you must manually enter your assets. You can also enter the prices at which you purchased to correctly track your winnings.
CoinGecko is well-known for tracking cryptocurrency prices, but it also offers a portfolio feature. It is available for use on your browser or on your mobile device and is completely free. If you already use CoinGecko, you should give the tracker a shot.
RoboFi (www.robofi.io) is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the $VICS token.