Sirwin
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The Crypto Portfolio Strategy That Changed My Life

By johnwege | johnwege | 26 Feb 2024


When it comes to my cryptocurrency portfolio strategy, I am different than most. While others may try to make as many gains as possible in the short term. I am more than happy to sacrifice those short-term gains and take a nice and slow approach. Let me tell you why.

When deciding to build your crypto portfolio, you must first decide if you want to have a diversified or highly concentrated portfolio. A diversified portfolio means that you will have many different cryptocurrencies in your portfolio, which will increase your chances of having a coin that eventually performs very well. But, because your money is spread out over several assets, it will also diminish the potential gains you can have. However, some often try to balance this out by taking on a little more risk and investing in lower-cap altcoins.

The other option is maintaining a highly concentrated portfolio of only a few cryptocurrencies. Those who have high conviction in certain projects often prefer this strategy. Since there are only a few coins in your portfolio it increases the odds of missing out on potential gains by not owning the coin that is performing well. But, if you get lucky and have the crypto that does well, your gains will be much higher due to having a higher-concentrated portfolio.

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Over the years my strategy has always been to keep a highly-concentrated portfolio. There are three main reasons for this.

The first is that I believe the name of the game when it comes to crypto is to accumulate as much Bitcoin and Ethereum as you possibly can. All of the other cryptocurrencies are distractions that have a much higher risk. While Bitcoin and Ethereum make up the vast majority of my crypto portfolio, I still own a very select few other coins. I’m using these other coins as a tool to accumulate even more BTC and ETH.

The second reason is that during my time in the crypto market, I have found it much easier to reach my crypto accumulation goals when I’m focused on fewer coins. By not spreading out my money too thin, I have been able to accumulate much faster.

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Finally, my last reason is that it allows me to keep track of the coins in my portfolio much better. When it comes to my crypto investments, I want to know everything about them; becoming an expert. I also only invest in projects that I’m passionate about. While this sometimes results in missing out on potential gains. It also results in this industry being much more enjoyable for me. This is something that has allowed me to be very passionate about my investments, and maintain conviction in them for the long term.

Since we are all early adopters of the crypto market, the most important aspect is actually surviving the market for the long term. While some may consider Bitcoin and Ethereum to be slower movers than other altcoins. The truth is that most coins actually trend to zero when compared to them over the long haul. It isn’t about making the largest gains on your computer screen but maintaining them over the long term. While each person is different, over the years these strategies have worked very well for me.

How about you? What is your crypto portfolio strategy?

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