Looking for how to create the best crypto portfolio for high returns with low risk? Who is happy to help you. There are many factors to consider for a crypto portfolio. In this article, we'll help you create a plan to take profits and minimize risk without worry.
High risk high reward, Low risk low reward
Cryptocurrency has become more and more famous lately. Some coins go very high where a lot of money can be made. But on the other hand, a lot also remain low and sometimes even well below minus. So keep in mind that the smaller the currency, the more risk it has, but where the most return can be found.
Spread your portfolio
Of course, you should realize that a high return also comes with a high risk. That is why it is important not to put everything on 1 coin. But divide your money over several coins. Because waiting for the high risers with a very high return is impossible and is actually gambling. the more volume the coin has. How reliable he is and it also has the least possible risk. Here is also an example of a portfolio The white part can be left for you to put in high risk coins. But the chances of these disappearing are very high. So take care of spreading and also make sure you have large coins with little risk.
How long do you hold?
It is also important to take into account the time you want to hold the coin. You can do that to look back into the past of the currency where and how often it has gone up and down. Determine the buying point with this and what you are satisfied with the sale. And don't let the news disrupt your plan.
The cheapest price point
It is also important to make a plan for getting in and out. If you invest for the long term. Could you perform a DCA. Finding the cheapest point is impossible. this allows you to arrive at an average price. If you have the question what is DCA? that stands for Dollar Cost Averaging. With this you buy a piece of the coin at a fixed time. for example a piece every month. This way you build a position in a good way. If you plan to do this. Can you search for a platform where it can be done automatically. Binance has the ability to do DCA with an automatic system. This way you don't have to take into account that you have to buy a piece. But it's done automatically for you. If you register via stock exchange you can also win a prize. read more via the green button.
Don't forget to take profit
With any investment, it's important to stick to your plan. This means you no longer panic when there is negative pressure on the market. It is important to determine at what price you want to buy. But also when you get out again. If the market continues to move upwards. Is it wise to take profit every now and then? Many people stay in one position for too long when the market goes high. Nor do they want to sell in a declining market. Determine your buying and selling points with indications of, for example, levels that are registered when you use a platform as, for example, trading view. or if the price reaches a certain price point. This does not mean that you have to sell 100%. but for example 10% You can also put a stop loss in the plus.
If you work on all these points and stick to them, you will be more confident in your business and don't forget to take profits when you have to. I hope I have made it clear to you not to focus on high numbers. It is safer and avoids a lot of stress to act normally.
This is not financial advice
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