Years back when I first got into crypto space, I made several mistakes and struggled while trying to grow my portfolio, That led me to several studies and buying of crypto courses to see how I can build both my skill, portfolio as well as my financial life. It wasn't a day struggle, off course you all know this popular saying; "Rome was not built in a day". Truth! Becoming successful at anything doesn't just come easily, it needs time, consistency and determination. I understand a lot of people faces this challenge trying to build their crypto portfolio. you will agree with me that only one thing brings us all into this game, and that is; making money and building a better financial life not only for us, but for our children and love ones. So being able to build your portfolio successfully offers not only financial satisfaction, but also freedom. The required skills to know when to accumulate and when to distribute and when to re-accumulate is required for a successful portfolio management'
So in this article, we will be looking at the requires skill and guide lines to successfully grow your crypto portfolio.
Guides to successfully grow your portfolio :
1] Acquire deeper knowledge on technical and fundamental analysis: a deeper knowledge on technical and fundamental analysis is required to successfully grow your portfolio. you will need to understand how the market moves and what could possibly affect the price of a given crypto asset at what particular time. technical analysis is just a visual display of what other market participant are doing in the market in a given period of time.
2] Develop a rule and stick to it: you need to know that trying to grow your portfolio makes you a portfolio manager. So developing rules that will guide your activities is very essential which will keep you discipline. How do I mean by developing rules ? you need to determine what price level you want to buy and what price level you want to sell and stick to your plans. No body can really do this for you, you have to do that all by yourself.
3] Funds allocation and risk tolerance: This is very important, know what crypto asset you are allocating your capital to according to your risk tolerance. usually I allocate 50% of my funds to big cap, 30% to medium cap and 20% to low cap. This is just my kind of allocation strategy and you will need to find yours tailored to your financial goals. what are your financial goals and your risk tolerance ? we have different types of portfolio; a low risk portfolio which usually is about 50% in high caps, 35% in medium caps and 15% in low caps. A medium risk portfolio is about 40% in high caps, 40% in medium caps and about 20% in low caps. while a high risk portfolio is about 40% in high caps, 30% in medium caps and 30% in low caps. All you need to do is to evaluate your financial goals and stick to your plans.
4] Diversify your portfolio: after when when you have gain a reasonable experience, and you wish to level up your game, you can consider allocating some of your earning to futures trading where your can gain access to leverage and maximize your returns. NOTE; leverage trading is considered to be very risky and requires lots of experience and experience is achieved by a lot of screen time in the market. So if you are looking to take your portfolio to other level, then you can consider futures trading.
Finally; always look to buy low at all times and sell high at all time. Like I said before, you will need a level of discipline by following your rules in order to successfully grow your portfolio. This isn't a financial advice though.
happy managing experience, I look to see you in my next article. Thanks friends.
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