As an investor, having a well-diversified Crypto portfolio helps direct profit flow and limit losses. However, most investors are not aware of how to create or diversify their portfolios. A crypto portfolio is an inventory of all your crypto assets. A well-balanced crypto portfolio should include both long, medium and short term coins and this is where portfolio diversification comes in. Furthermore, an investment portfolio is usually guided by an investment strategy. What is the aim of adding the coin to your portfolio, how long do you want to hold the coin, at what price do you want to exit the coin? All these questions and more should guide your investment portfolio.

Three Things to do when creating a Crypto portfolio?
Get a basic understanding of Cryptocurrency

For most people, the interest in cryptocurrency is the high returns; while it isn’t a bad idea to expect high returns from an investment. Every great investor knows that it is a bad idea to invest in something you have little or no idea about. Before creating your crypto portfolio, a basic knowledge of cryptocurrency and blockchain technology will help guide your investment decisions and strategies. Also, a detailed understanding of digital assets helps you determine if you want to go in for the long haul or short term. Since the market is volatile, understanding how the market moves will help guide an investor’s decision.

Do your Own Research

Before creating your crypto portfolio in 2021, you need to carry out meticulous research. You have to ensure that you have adequate information about the team involved, the market cap of the coin, the roadmap of its project as well as other little details. Researching the intricate details of the coin you aim to invest in will help you spot out the coins that are pump and dump schemes. Also, it will help you keep FOMO at bay instead of jumping in to buy a coin.

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