Today we will talk about how your investment portfolio should be distributed. The distribution of your portfolio varies, depends on the attitude of each person, also depends on your financial situation. But what is universal and basic and any person should prioritize is to have an emergency fund, a reserve, for anything bad that happens, whether they fire you, or your business goes wrong, etc. You will have that fund to continue operating, to continue living. First of all let me mention that I do not consider myself an expert or anything like that, I will only speak from my experience so this should not be taken as financial advice.
Another important point that you must take into account is your age, for example, younger people will have more time to gain experience, to travel the path of ups and downs, since they can still make mistakes and can recover.
But on the contrary, people who are older (without offending anyone) cannot be exposed to so much risk, why? Well, their responsibilities are higher, maybe they have a job, maybe they are too old to change jobs, maybe they have a family to support, so age is also an important factor, not just the economic situation.
Another point we should focus on is your adaptability. I mean how easy can you adapt to the risk, maybe you are very young but you do not like to see the volatility in Bitcoin, maybe you are not able to bear such volatile movements and you can feel uncomfortable for having this type of portfolio .
This is something very important that we must take into account, if you do not feel comfortable, it is because you do not have the correct portfolio. Your positions have to be perfectly calculated so that you know perfectly, that if you lose that it should not affect you. Well you know you have an investment that will never fail you gold, silver, etc. You have to be diversified is an important point in your portfolio.
For example, if you have all the eggs in one basket and that basket falls (you lost everything), that is why we must be diversified.
People who have a lot of money, it is because they have several sources of income, it is not luckily, they do not have only 1 business. They can have maybe 50 businesses, maybe they also have 10 houses that they have for rent giving them a passive income, they can have a lot of income, savings accounts that generate high interest.
This example helps us to diversify our portfolio so if an asset falls or does not work, the others will continue to contribute to you and you will be able to bear the fall of one of your sources of income. That is why you have to keep in mind that the key is to diversify.
Another point that we have to take into account is the risk area. If the asset you are entering has a lot of risk but does not have clear opportunities or large profits, why are you risking for a few pennies, or for a little profit.
For example, having conservative investments you can generate income, but clearly the income is not as high as what you can generate in risky investments. But executing conservative investments allows you to grow your portfolio, but also helps you maintain it. Not to be devalued by inflation.
Now let's focus on the title as our cryptocurrency portfolio should be distributed, so we will divide our portfolio into 3 types of investments.
CURRENCIES THAT ARE ALREADY ESTABLISHED
COINS WITH A MIDDLE RANGE CAPITALIZATION
SHITCOINS
For some, SHITCOINS is any currency other than Bitcoin, but if we have this perspective, we will be closing the door to other types of opportunities for large projects.
So Bitcoin should meet at least 70% or 80% of your portfolio, mainly because we know what Bitcoin implies. There are already many players from the major leagues, who are betting on Bitcoin. In my opinion, who has more options in the future is and will continue to be Bitcoin. And when Bitcoin rises the other altcoins follow it and when Bitcoin falls the other altcoins follow Bitcoin they also fall even more sharply. So we must take this into account.
If you can have more gains in altcoins even with increases from 100% to 500% etc, in coins that are smaller, but these can fall much faster and much easier, so we must take this into account.
Therefore, you should have 18% to 19% of your portfolio in CURRENCIES WITH MIDDLE RANGE CAPITALIZATION. It can be Ethereum, Litecoin, Cardano, EOS, Stellar, etc. These currencies are already a little more established, they already have working products, their community continues to grow, etc. So you are not betting on something that does not exist, if you invest in a project with a projection to the future, perhaps you already have a solidific product. So this would give you the fundamentals to invest. Also due to the capitalization of these ALTCOINS, which are not as large as Bitcoin, but can also have high volatility, this warrants high risk, but a great opportunity. Remember that the risk has to be equivalent to or less than the return you are going to obtain.
The rest of your portfolio, the remaining 2% or 1%, you can invest in shitcoins, bearing in mind that it is at your own risk. Shitcoins are very low-capitalization coins that can be moved very easily. A whale can move the price smoothly even with $ 10,000 USD.
You also have to take into account that SHITCOINS do not have liquidity. For example if you had $ 1,000,000 USD but this currency is only in an exchange and that exchange has a 24-hour volume of $ 5,000 USD for example. Even if you wanted to sell that Million dollars that you have of that currency, you would have no place to sell it, because there would not be enough buyers to absorb that sale. So we must take this into account and stop listening to quacks who promise you 1000% uploads on SHITCOINS.
Bitcoin is the crypto in the market that has the most liquidity in the market, that's why you can sell BTC in a few moments, like ETH, BAT, etc. But the lower the capitalization, the currency will be in fewer exchanges and less volume in 24 hours equal to less liquidity. So you must take this into account.
What I have just explained to you is the basic thing that you must take into account in the distribution of your portfolio, it should not necessarily be in investments in the crypto universe, you can also implement it in other types of investments.
Cryptocurrencies are very fast, very liquid, in one minute you can have BTC, ETH, LTC etc, and the next minute you can change it to your local currency. But remember diversification, we must not have all our eggs laid in cryptocurrencies, therefore we must be diversified in some other types of physical assets, gold, silver, real estate, etc. This is physical money, not paper money.
You can also STAKING if you want to learn how I leave the link, because in past publications here in Publish 0x I show you how to do step-by-step staking. staking-usdn-detailed-how-to-guide-one-of-the-best-safest-
how-to-create-a-source-of-income-how-to-increase-your-dai-
You can also add savings accounts, bonds, investments in established companies. All this will cause a cash flow, this is the most important thing for any investor. The flow is the important thing is how much money you can receive per day, per week or per month. Flow is what matters not how much you have accumulated.
Thanks for reading, I wish you the best, have a great day or a great night🤗
