Creating Your Cryptocurrency Portfolio

Cryptocurrency… is it for you? You are probably here today as you convinced yourself that waiting another day to buy cryptocurrency is no longer an option. You now may know that cryptocurrency is the right investment for you, and may even have yourself signed up on exchanges ready to buy. In today’s topic, I will not be telling you what to buy, but instead explaining what an efficient portfolio looks like.

There are many ways on designing your portfolio, but this is what I believe to be the most effective way in a few simple steps.

  • Step 1: Decide how many coins you should be diversified in. I believe that the prime number is 7 or 8. This is not a must, but just a guide to go by. Even the wisest and richest man, Solomon, was a huge advocate for diversifying. (Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth-Ecclesiastes 11:2) One may have heard the phrase, “Don’t put all your eggs in one basket.”

  • Step 2: Now that you know the number of coins you want, you should be diversified in both low, medium, and high risk coins. For example, the coins with highest market cap are your low risk coins. The reason for this, is that a lot more money has been poured into that coin, and will take a lot longer time for the price to decrease. #1-10 market cap coins are often considered to be on the safe side and is highly recommended. You should have approximately 2-3 low risk coins such as Bitcoin and Etherium to weigh out your portfolio. Often times, when major alt coin prices decrease, the price of Bitcoin and Etherium rise. I also encourage 2-3 medium risk coins (#10-30 market cap). Lastly, I even urge you to consider high risk coins such as #50+ market cap coins. If the market cap is low, it leaves incredible potential for the price to rise. In fact, if you truly believe in a project, go for that coin that is #500 in market cap! You may even want to consider in an ICO stage of the coin (Initial Coin Offering). In other words, you are scooping up a coin for discounted prices, in hope that it goes big when it becomes available to the public.

  • Step 3: Now here is the best but trickiest part: choosing the right coins!  Here is a brief list in going about this. 1) What is your reason for investing in this cryptocurrency-do you see it being utilized and adapted in the future? For example: I chose Medibloc because being a Registered Nurse, I see a huge potential in adapting blockchain technology into healthcare including private patient information. 2) Is it different and unique compared to other coins? If it is a replicate of bitcoin, it most likely will not have substantial growth or utilization. 3) Who is the team behind it? A good working team can make a platform go a long way.

 

  • Lastly here are some keywords you should learn in understanding how the prices of cryptocurrency evolve. According to Investopedia.com,

 What is Market Capitalization

“Market capitalization refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to using sales or total asset figures.”

 What is Circulating Supply

Circulating supply of a coin may often be thought of as the coin available to be purchased at a given time.

Price of a coin= MarketCap/ Circulating Supply

Ex: Bitcoin: ($16,734.30)

Market cap ($280,872,256,418)

_____________________________________

Circulating Supply (16,784,225)

=$16,734.30

 

Here are some tools for keeping track of your portfolio:

  • Blockfolio: Free App available in both Google Play Store and the App Store.
  • Delta: Free App available in both Google Play Store and the App Store.

 

Stay tuned for more reviews,updates, and latest news on cryptocurrency.

 

Join us in our active community discussion group for any questions, tips, or other interests in blockchain technology: https://www.facebook.com/groups/thecryptoadvisor.net/

Disclaimer: Crypto currencies are a high risk, speculative market and subject extreme volatility, never invest more than you are willing to lose. None of the information found on this website should be taken as investment advice or council. We are not liable for any financial losses. Some links found on the website may be affiliate or referral links. Images obtained by google.com (images)

Cryptocurrency: Should I Invest?

What exactly is this cryptocurrency, AKA-Bitcoin, everyone has been talking about? Can I get rich too? These are all great questions, as many have found themselves a whole new level of wealth, and often times even empty handed. You may be here as your uncle or friend just made thousands of dollars on their recent crypto purchase. In fact, you may even be in need of a quick buck, and in hope that this cryptocurrency will make you the new overnight millionaire. In today’s topic, I will be summarizing on why you should or should not invest in this blazing topic: cryptocurrency. Before I begin talking about the many reasons on why you should invest in cryptocurrency, I feel that I first need to explain the important reasons in when you shouldn’t.

 

1.) You should NOT invest if you do not understand what cryptocurrency is. Most likely you are here today as every other conversation is about the new all time highs for Bitcoin, Etherium, and Litecoin. You should NOT be investing into any cryptocurrency until you understand what blockchain technology is, what it does, and why would it be utilized in the future. Don’t just take the word from someone else, but do your own research before you invest! This cryptocurrency utilizing block chain technology is not just a “bubble”, but an unforgettable new technology that will spark the way of the modern world.

2.) You should NOT invest if you do not have financial freedom. The best advice I can give to anyone in the financial world is: DO NOT GO INTO DEBT. In fact this simple concept is often very distorted as our daily life is constantly advertising that credit is the form of free living. Unfortunately, in today’s society, it is very hard to get ahead leading to our last resort called the credit card. Therefore, I advise you to not consider any investment until your debt is fully paid off as you are not fully free, but a servant to your lender (Prov 22:7b). YOU SHOULD NEVER INVEST WHAT YOU ARE NOT WILLING TO LOSE. There are many strategies of going about investing into your cryptocurrency portfolio; as we will discuss this in future days.

 

 

3.) You should NOT invest if you are here to get rich quick. If so, you are already heading down a dangerous path. Props to the overnight millionaires, but there is a high chance this will not happen to you. If you are in need of money fast, you probably shouldn’t be putting your last resorts into the crypto market.

 

After summarizing the brief reasons on why you should not invest in crypto, here are some reasons on why you should!

 

1.) You SHOULD invest because cryptocurrency and blockchain technology is still in it’s baby years! One may ask, did I miss the train? The answer is NO! Cryptocurrency is often thought of as a bubble, but you need to realize that these currencies are not necessarily just fighting to become the new adapted currency; but will and have been utilizing this new form of blockchain technology into the modern world and all aspects of our daily life! Just consider that you may be investing into the new google, facebook, and amazon of today!

2.) You SHOULD invest because, when was the last time you saw a 1000% increase on your investment in 3 days? Cryptocurrency is a more risky investment; but this allows the returns to be quite remarkable. There are many strategies in how to design your portfolio, as many of these investments are very risky, but many are also on the safe side.

3.) You SHOULD invest into cryptocurrency and blockchain technology because it is designed for a world of decentralization!  Decentralization is often thought as the shift of authority from central to a local government. In other words, decentralization is the transfer of departments of a big company away from a single administrative center to another. With cryptocurrency, you can now become your own independent bank!

Saying all this, welcome to the new age of digital currency. Always invest at your own risk. Now that you decided whether investing cryptocurrency is for you, here is our recommended list of exchanges for you to begin: http://thecryptoadvisor.net/2018/01/06/top-cryptocurrency-exchanges-of-2018/

Join us in our active community discussion group for any questions, tips, or other interests in blockchain technology: https://www.facebook.com/groups/thecryptoadvisor.net/

 

Disclaimer: Crypto currencies are a high risk, speculative market and subject extreme volatility, never invest more than you are willing to lose. None of the information found on this website should be taken as investment advice or council. We are not liable for any financial losses. Some links found on the website may be affiliate or referral links. Images obtained by google.com (images)