5 Tips on How to Build a Profitable and Balanced Crypto Portfolio?

A crypto portfolio can be a powerful tool for achieving your investment goals. Keeping track of all the pieces that go into a balanced portfolio is a tough challenge, though. The best option is to buy crypto with Swyftx to minimise your risk and keep you on track towards your financial goals.

This means you need to be comfortable with the idea that there’s a distinct chance your entire investment could evaporate overnight.
That’s why experts recommend people only invest an amount that they’re willing to lose.

1. Showcase Your Investment Goals

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A crypto portfolio should reflect your individual financial goals. For example, you might want to take advantage of volatility or build a prominent position in an altcoin that could be the next Bitcoin.

No matter what kind of investment you’re shooting for, it’s essential you have an idea of how much risk you’re comfortable taking on and watch your portfolio to make sure it’s still aligned with your goals as the market changes.

2. Tracking Your Performance

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You can buy crypto with Swyftx, and starting to keep track of your portfolio’s performance is an integral part of this process. If you don’t, it will be hard to determine if you’re on track towards meeting your financial goals.

Use the crypto portfolio app available for tracking your performance across multiple exchanges and wallets. Doing so will provide you with a better idea of where you stand with your crypto investments.

3. Risk Factor Analysis

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Before making any investment, it’s essential to do proper research on the project and cryptocurrency at hand. Find if there’s a community around the altcoin or tokens.

You can also research information about the team behind the project, its road map and most importantly, its whitepaper. Learning more about the project you’re investing in is an excellent way to minimise your risk exposure.

4. A Balanced Crypto Portfolio

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Once you’ve done your research, it’s time to create a balanced portfolio that not only outperforms Bitcoin but also minimises your exposure to unnecessary risks. For a balanced portfolio, you’ll want to combine the different kinds of cryptocurrencies available on the market.

Cryptocurrencies are available in two main categories: coins and tokens. Coins like Bitcoin and Ethereum are meant to function as everyday money. Tokens, on the other hand, provide access to products or services within a blockchain-based platform.

For a balanced portfolio, you could combine the two kinds of cryptocurrencies into one that exposes you to both coins and tokens. You can do this by investing in an index fund or exchange-traded fund (ETF). Whichever option you choose makes for a good starting point as it provides instant diversification among all kinds of cryptos.

5. Next Steps

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Once you’ve created your initial portfolio, it’s essential to monitor it over time. It will likely change as the market changes, and so should your investment strategy. Keep an eye on new cryptocurrencies or altcoins that might be introduced into the market.

Also, please keep track of any significant events – regulation changes, hacks on exchanges, etc. – that might cause a significant shift in prices and make it necessary to tweak your strategy in the future.

Wrapping Up

Build a balanced cryptocurrency portfolio, and the next step is pretty simple: start investing!