They’re either too aggressive and get wrecked, or they play it way too safe and miss out on crypto’s extraordinary potential.
So…
Want to learn how to build a solid crypto portfolio?
First things first…
The “Perfect Portfolio” Doesn’t Exist.
There’s no such thing as a “perfect” portfolio.
It all comes down to context, and the context is constantly shifting.
Of course, your ultimate goal is to lower your risk while increasing your potential reward. But, to do so, you must take into account your own personal risk tolerance, goals, and time preference.
What’s Your Risk Tolerance?
If crypto dropped 90% overnight, would you be OK?
If not, you might want to adjust your portfolio.
Everybody has their own level of risk tolerance. Also, as usual, the golden rule in crypto: Never invest more than you can afford to watch drop like a stone.
It’s Like Building a Team.
Building a solid portfolio is like building a solid team.
In order to have a good team, you need a good balance between offense and defense.
Some people on your team defend your portfolio (like stablecoins) and others on your team help grow the score (medium to higher-risk coins).
Stablecoins: Preservers
Blue Chips: Consistent-growth performers
Medium Risk: Consistent-middle performers
High Fliers: Volatiles” – James Altucher.
So…
Want to learn how to build a solid crypto portfolio?
First things first…
The “Perfect Portfolio” Doesn’t Exist.
There’s no such thing as a “perfect” portfolio.
It all comes down to context, and the context is constantly shifting.
Of course, your ultimate goal is to lower your risk while increasing your potential reward. But, to do so, you must take into account your own personal risk tolerance, goals, and time preference.
What’s Your Risk Tolerance?
If crypto dropped 90% overnight, would you be OK?
If not, you might want to adjust your portfolio.
Everybody has their own level of risk tolerance. Also, as usual, the golden rule in crypto: Never invest more than you can afford to watch drop like a stone.
It’s Like Building a Team.
Building a solid portfolio is like building a solid team.
In order to have a good team, you need a good balance between offense and defense.
Some people on your team defend your portfolio (like stablecoins) and others on your team help grow the score (medium to higher-risk coins).
Stablecoins: Preservers
Blue Chips: Consistent-growth performers
Medium Risk: Consistent-middle performers
High Fliers: Volatiles” – James Altucher.
