What is a cryptocurrency portfolio?
A cryptocurrency portfolio is simply a software that manages your cryptocurrency. You are able to track all of your profits and losses from all of your cryptocurrency investments. This helps you keep track of your coins that you have invested in, as well as live feeds and price updates from exchanges. You need to know where you stand with these coins at all times and there is no better way than to have a portfolio so it's all in one place.
There is no such rule as to how many coins you should have in your portfolio but your portfolio should be diverse and not just have buys into just one or two coins, this is because it will help you manage your potential gains and losses more effectively by having at least 3-5 + rather than just one or two. The crypto market does have its mood swings so you don't want to put all your money into one coin, as by doing this may endanger your investment goals. Whereas if you have a diverse portfolio then you can distribute potential risks across multiple coins, as if some of these fail to meet your expectation then others may just reach your expectation.
Organising your portfolio.
Study the coin you want to invest in: CoinMarketCap is a great place to check, this will give you an idea of how popular a coin is, these numbers are important as it shows how volatile a coin is. These fluctuations can change daily although the top coins like Bitcoin and Ethereum are pretty stable. You can also use our tool to see how a coin will potentially grow in the future. You should fully understand how the coin works and how it's trying to create value. Read on subreddits of the coin, find its twitter account, read key documentation on its website: this will help you understand the community and gain better knowledge in the coin. Ask yourself; how is this coin useful to your lifestyle? By selecting coins that have more beneficial factors to your lifestyle like those that seek improvements to the industries and activities that you support, will be a better investment to you personally. Although this does not have to be the case in all of your coins, as smaller ones can still bring you good profits, you must do your research.
Know the risks: These risks highly factor on what it is you want to gain by investing in the first place. If you are looking to get rich quickly then you can damage your portfolio on FOMO (fear of missing out) and have a desire that you want to gain from investing and stick to it. Be aware that some coins are deliberately manipulated by big players (aka - whales) so don't get fooled by that scam. Don't rush in or out of anything.
Understanding the technology behind it: By doing this you will gain knowledge of its potential challenges it faces now or later on. Every piece of tech has its pros and cons, the market may vote on a specific type of technology used by certain coins which may have an effect on your coins value. By joining the coins social media groups and pages these updates and changes will have you notified.
Most Popular Portfolio Tracker
Blockfolio is the most popular free portfolio tracker and recommended by many users. Blockfolio works by gathering and displaying information. It constantly tracks prices over many coins across many exchanges and displays the prices for those coins relevant to you. Blockfolio allows you to have the option to link your crypto exchange accounts which is completely anonymous and safe to do so, it just helps that your trades are synced correctly.
Blockfolio is an app that can be installed on many devices. Once you have downloaded the app you can start by adding the coins you have, you can then watch the coin and that's pretty much it. The app will simply watch the coin over the exchanges if you have chosen to add that option and update you on the display of any changes.
If you decide to proceed with any transaction you can register this move on Blockfolio so that your holdings can be updated. It's very simple and easy to use to be able to see your coins and all that you do with them, all in one place.
- Always do your research
- Never put in what you can't afford to lose
- Don't rush in or out of anything
- Stay positive and have belief in your coin
However it can really help to practice a bit before investing your real money to learn how things work. Try our virtual crypto trading game where you can buy and sell over 50 different cryptos with pretend money and see how you get on. Also if you do well and top the profit league tables in a month you could win real crypto as a prize. Its totally free to play so you have nothing to lose