We all know that gambling is bad,
Gambling has Risk, Obviously
And having a portfolio just on one crypto, Is just like gambling
And if you know how to handle your portfolio, you can remove some of the risk
This is a post dedicated to helping you Diversify Your Portfolio
And Cut🎬
How should I diversify my portfolio?
: Just knowing why you should diversify is only the tip of the Iceberg
There are factors like,
What Cryptos in general should I invest in? What percentages in crypto what crypto? How do I diversify with a small amount of crypto?
Don't worry I can answer those questions in this post and some more ;)
What Cryptos In General Should I Invest In?
: If your thinking broadly, And feel like you can go off just some broad stuff, I would recommend the following:
Different Asset Types :
Like Blue chip coins (Watch out for fakes Ex: XRP & ADA), Altcoins, Airdrops, Stable coins
Different Asset Sectors :
Like Layer blockchains, Defi, NFTs, Web3, Privacy and Security
Risk Tolerance/Percentage Allocated :
High risk : Putting around 10% - 15% on Airdrops and overall the underdogs who have a high potential
Mid risk : Putting 30% - 40% on mid-cap coins which are more established than small-cap coins (High risk), but less established than Blue Chips
Low risk : Putting 30% - 40% on Blue chips, Stablecoins and overall well-established coins for stable growth and capital preservation
But What If I Have A Small Amount To Invest?
: Then stay away from the High risk altogether, Keep around 50/60% on Low risk coins that we just discussed, Including The rest in your personal preferences Ex: 40% Mid risk and 10% High risk
Geographical & DEX
: You should always consider the coins you invest from a Geographical and Centralized point of view
Ex: Ethereum
Geographical location : Created in Canada specifically Toronto ( Not a country known for anti crypto )
CEX or DEX? : The founder holds a significant amount of Ethereum which is not publicly known, Even though he holds this much he still donated a large amount to charities around the world, Even though we know so little we can still make a assumption
The Bear Market : Because $BTC isn't Centralized and Satoshi didn't intervene, We still know that among the people helping Bitcoin's bear market on its feet was the Ethereum team, Using this we can assume that if $ETH were to go into a Bear market, the Ethereum team would intervene to stop, Using their large ETH holds
Conclude : The ETH market has a high possibility of becoming Centralized (If a bear market were to happen), so betting the ETH would go down if not a good long term move
That's all for today, and Bye
