In this post, I will talk How you can invest 10K$ in Cryptocurrency in the best possible way. Some of you are saying, I will buy Hive it has good potential with that 10K$. But let me tell you if you do that you are one of the stupid people in this world. This isn't because Hive is a bad project or doesn't have potential. This is because while investing your money there are risks and profits that you should look at earlier. You can mitigate the risk through diverse investments and it is called portfolio management (after you invest). @gualteramarelo
The link to his post is here:
https://leofinance.io/@gualteramarelo/doubled-my-hive-position-today
I got the idea about this article from one of our members of the Leofinance. He was asking for information about what is the best token to buy or a way to buy for his 10K$. And I thought instead of replying only to him. I should create an article so that everyone can get benefits.
So here we go:
1) Dividing the Investment:
The first thing you have to do is divide your investment into different parts. This can be done according to the riskier assets and the not riskier assets. In the Crypto world, one of the most hedges against bear market assets is Bitcoin. This is because Bitcoin dump is less than any other Crypto out into the market at the worst time.
You should have most of your portfolio% in Bitcoin or you can choose any top10 assets that have done really well and have working projects on them. For instance, ETHEREUM can be a good choice over ADA here because ETHEREUM has working projects and the utility of ETHEREUM will remain no matter what the price will be for right now. So You can divide your portfolio like this:
BITCOIN=30-40%
TOP 10 CRYPTO= 20%
TOP 50 CRYPTO= 15%
TOP 200 CRYPTO= 10%
TOP 500 CRYPTO= 4-5%
USD= 20%
It doesn't mean you have to hold every cryptocurrency like BitBoy, you can select the crypto in the top 50 and find out the best potential crypto project and go for a few of them.
2) Cash Vs Crypto:
Now, here comes the battle between cash and crypto. The main thing you have to make sure of is you should always have the chunk of your portfolio or the money that you are investing into the cash. It is ok if you're holding it on your bank account or any stable coins but you should have that amount in stable currency and should be liquid.
You can use the same 20% in the liquidity pools or stake it but always stake that in the stable coins pool or stable coin staking. If you want to know about that and want to know the best way to stake your stable coins and massive return with almost 0 risks and no impermanent loss then I can write more about that in the next article. Just leave me a comment below.
You will have no idea when BTC tanks by 50% and you are out of the cash at that time to buy the dip. And the next day is crypto market up by 50%. You shouldn't miss such an opportunity and the only way to do that is by holding 20% of your portfolio in usdt and always be ready to buy the dip no matter how bullish the market is. Your 20% will become 40% of your portfolio in the next day and you can cash out 20% keeping the rest, as usual, This is the power of the strategy.
3) FUTURES VS SPOT:
Don't let you have 10K$ exposure to the futures market or your future wallet. For future markets try to keep the minimum as possible. For instance, if you are having a portfolio of 10K$, then you can use 5% of it as the total capital for futures. Please don't greed, use no more than 5X and use 1% of your portfolio at max for each trade. I am saying 1% per trade is a really big number so keep it a maximum of that.
4) INVESTMENT DURATION:
Be already prepare for the time in which you are invested into. If you are investing in Bitcoin, it will make sense if you are planning for at least 4 years. If you are planning for less than that, then the risk increases so be sure about that earlier.
For long-term investors use most of your portfolio and for short-term or for mid-term use the medium to a small portion of your portfolio. This is because you will enjoy the profit in summer but the cold winter will take everything away from you making you homeless. This is not a joke guy. This is reality.
I hope these few investment tips are helpful for you. If you found them interesting you can upvote this article but it is an option so even if you don't do that it is fine. hahaha but do that.xd
DISCLAIMER:
This article is only for educational purposes. Please don't make any reference to this article. Use your own brain for your own money.
Thanks for reading!
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STOPTo support your work, I also upvoted your post!
@ridam This is a VERY solid strategy and goes right along with what @scaredycatguide has been saying to me for the last year!
I love how you broke down the percentages by asset risk and always allow for the 20% USDT position for future purchases! This is an article that I am hoping more investors will read and a strategy that will work solidly for long-term and even some short-term gains.
It essentially follows the same rules we have used with our real estate portfolio, with that keeping up 20% cash available at all times for great opportunities! This right here is the money man:
BITCOIN=30-40%
TOP 10 CRYPTO= 20%
TOP 50 CRYPTO= 15%
TOP 200 CRYPTO= 10%
TOP 500 CRYPTO= 4-5%
USD= 20%
Thanks for taking the time to put this one together! I've been dollar-cost averaging my way into Etherium lately and ironically have not been holding any BTC, but I am going to re-evaluate my crypto portfolio using this strategy and work towards creating a much more aligned strategy.
Fortunately, I have built a strong real estate portfolio that brings in fresh cash each month, so it may be slow at first, but eventually, I intend to reach this portfolio balance you've suggested and will likely keep, HIVE, LEO & CUB as 10-20% of my portfolio.
The best part about these platforms is that they continue to earn and compound while I am stacking up the BTC and ETH position. I still want more HIVE, so I might just go and take on an extra flip this year to catch it, lol
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