After several years of studying and investing in cryptocurrencies, the time has come to talk about creating a portfolio.

Introduction

The traditional market owns stocks, bonds, ETFs, CFDs, etc. We are talking about stocks that in a traditional portfolio have a certain resonance, different risks and a different interest ratio for each of them. In the traditional market, the long-term trend is mandatory for those who want to build a good portfolio. In the cryptocurrency market, what remains stable are stablecoins, everything else can be more or less volatile and in several cases an interest can be generated (through coin staking), or with other methods (which I have not tested as I have considered more feasible and safe staking). In the cryptocurrency market, there are several similarities with the traditional market, and those who operate in traditional markets could have a serious understanding of how to move within the cryptocurrency market. But beware: those who want to enter the cryptocurrency market without having even a smattering of basic can combine serious damage and lose the capital invested.

# UPDATE TO 29/12 #

After writing a couple of notes here and there, I can say that I have found a very simple method to create a crypto portfolio without having to invest real money.

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Step 1: How to start

In particular, Nexo allows you to invest FIAT currency (eur, usd, gbp) obtaining an interest in crypto equal to 12%. With an initial capital of € 1000, for example, you can get € 120 in NEXO tokens in one year (which in turn generate monthly interest). By taking advantage of a greater capital, you can get a good interest, and convert everything into BTC or ETH, and then take advantage of the Compound Effect to multiply the earnings. So in the first year we will focus on increasing the capital to at least € 10,000 to get € 1200 of interest in NEXO tokens.

Subsequently, after converting 60% into BTC, 20% ETH and the remainder into NEXO, we can move on to the next step.

Staking

Through BTC we can carry out various operations on our NEXO account. The first concerns the allocation of 20% of our BTC in Poligon. In fact, at this moment on NEXO the interest rate on this coin is 20%, nothing short of exceptional. However, at the moment it presents some criticalities, since due to the fees that are high at the moment the best choice that can be made is the BTC / Poligon conversion.

Subsequently, we will be able to take advantage of the next 20% to convert them into altcoins (LTC, DASH, XRP, BCH, EOS, XLM, ADA, DOGE). We will need these coins later. In the meantime we can take advantage of NEXO to get more interest which we can then convert into BTC. Of the remaining 60% we will have to take 40% and move it to another platform. The platforms in question are Stakecube, Expresscrypto, Blockfi, Crypto.com.

Why all this? This reasoning fully reflects the stevino principle of communicating vessels, as by investing a relatively small capital, we can exploit all the advantages of crypto, or the sudden increase of the currency, obtaining a gigantic ROI in a couple of years without falling victim to SCAM.

ETH: WARNING!

Beware of ETH and derivatives that depend on its blockchain. Since there are currently high fees on the Ethereum network, it is impossible to move coins that depend on this protocol without incurring the fees, which are decidedly inconvenient. So the best solution is to use coins that have very low fees, and then convert everything within the individual platforms.

Step 2: Deposit and conversion

After depositing our 20% each month in a different platform (remember: Stakecube, Blockfi, Crypto.com) we can take advantage of the Compound Effect to amplify our earnings.

• A practical example is Blockfi, where there is a setting to obtain interests in a specific crypto present within their site. And then after depositing part of our BTC, we can leave them to mature by obtaining other coins that are missing in our wallet. Well, have a part of the portfolio in stablecoin to be converted into currency during the bear market period. About this site not long ago I wrote an article about it.

• On Stakecube, we have a fixed interest of 7% in BTC, which compared to other sites is a lot. Furthermore, by converting part of our Bitcoins into other coins, such as RDD, DASH, LTC, DOGE, PIVX, SYS, STRAX, KMD, SCC, DIVI, RPD we will also have a good portfolio diversification here, not to mention that ALL the coins on which you can stake on this site they offer a 7% APY ROI. One last consideration: there is a very complete exchange that allows you to exchange pairs of coins by entering orders, and with a very minimal commission.

• Finally, on Crypto.com by depositing our BTC, we will get a minimum interest, but that is not the important thing. In fact, what matters is the acquisition of CROs, which will allow us to obtain a VISA card that presents a Cashback on purchases in CRO. By accumulating CRO for a value of € 3500 we will be able to have access to the Royal Indigo or Jade Green card, which offer a Cashback of 3% by staking CRO. They also have some formidable benefits, such as Netflix and Spotify refunds, which is no small feat given that these services are used by everyone now. At the threshold of € 35,000 in CRO we will have the Frosted Rose Gold or Icy White card which allows you to have 5% in Cashback and in addition to the reimbursement of Spotify and Netflix, Amazon Prime is also added. Not bad, right?

Step 3: Looking for the best interest

Whether you are willing to follow the trend of cryptocurrencies or not, one thing is certain: at some point the search for the best interest will begin with which your coins can increase over the years. Yet in my fairly long experience with cryptocurrencies, I have learned one really important thing: if you can't move and trade your crypto easily, then don't invest even a satoshi in it. This is because I still have BANDs stuck in a wallet due to an incorrect transaction, and a handful of LRCs that I can't trade (unless they magically get worth a lot and ETH fees become minimal). But this is a scenario that I will not see neither this nor next year. Consequently I do not like to enter the DEfi which concerns ETH nor do I dare to enter the NFT market (unless I have the wonderful idea of creating a collection, but I think it will hardly happen).

So what I am looking for is the capital which I will then convert from time to time into FIAT currency (paying us taxes of course) and subsequently invest in the stock market. All this is accelerated by crypto, and in the next chapter I will give you a practical example.

Step 4: Understand what you are doing

Investing in crypto is not easy, but it is also not difficult to understand that your purchasing power will weaken a lot in the coming years due to inflation. In fact, by creating new money, purchasing power is lost. To avoid this, you have to invest a lot, and avoid cash like the plague unless necessary. Only in this way can your purchasing power increase, and with a card like the one offered by crypto.com the solution is at hand. As far as staking is concerned, it is a very passive practice and from time to time you will only have to worry about converting part of your coins into other cryptocurrencies that you can easily move to other platforms in addition to those I have just listed. Furthermore, instead of leaving your savings in the postal or bank account, you can easily invest them obtaining a crazy return with the method I have just described and withdraw when you need money. The operation of everything I wrote above is based on the principle of stevino's communicating vessels, which allows you to create a chain reaction useful for investing, obtaining interest and reinvesting without the minimum effort, at most a control of the whole operation a once a month.

In particular, the crucial point lies in the capital that is initially invested in FIAT currency. That is the pivot of the operation.

Example

For example, on € 10,000 of capital we will get € 1,200 of interest in NEXO, and then convert part of it into BTC and other coins. We will get € 720 in BTC, € 240 in ETH and € 240 in NEXO respectively.

Using € 144, we convert them into Poligon to take advantage of the high interest (20%). Let's move on to the altcoins to buy here: respectively another 72 €. Of the remaining BTC, € 288 we withdraw them to deposit them in 4 different platforms, and € 144 remain in the account to generate interest.

Of these € 288 in BTC, € 96 goes to Stakecube, Blockfi, and Crypto.com. We then convert the BTC we have in the various platforms from time to time to get other coins, while in Crypto.com our goal is to buy as many CROs as possible with a very low average market price. At this moment we have a CRO price equal to:

Through this ticker it is possible to calculate in real time how many CROs we can currently buy with 72 €. Then, subsequently, by repeating this procedure for at least 10 years, we can get an estimated interest that far exceeds the interest offered by the stock market. However, when your portfolio exceeds € 1,000,000, the advice is to sell 5% of your cryptocurrencies every year, obtaining FIAT currency which is useful for investing through a broker in the stock market. Through Interactive Brokers, you will be able to invest optimally within the stock market. At least for Europeans this is the best broker, while if you are part of America you are far at an advantage as there are ETFs that also offer 10/12% interest such as JEPI, NUSI, etc.

After investing € 1,000,000 in the stock market, and creating an emergency fund of at least € 150,000, you can declare yourself "financially free" and you can dedicate yourself to whatever you want. By continuing to invest in NEXO, you could get a return of € 120,000 each year from such capital, which is a huge income to say the least. As for taxes, these can be paid with the return obtained from the stock market, without having to sell your cryptocurrencies.

Final conclusions

Even if what I wrote above seems nonsense or exaggerated to you, I invite you to double check what happened last year and this year with cryptocurrencies. One by one they have had their period of prosperity, a useful period to sell part of your crypto and make a profit, and then re-invest everything again.

#EDIT: Expresscrypto is closed. I have removed all parts of the article related to this site, as after the closure several websites with similar domain (SCAM) appeared that use the fame created over time by this site to steal coins.

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