My Zeo

  • Home
  • About
  • Blog
  • Lifestyle
  • Health
  • House
  • Pets
  • Fitness
  • Money
  • Contact

Grow your cryptocurrency portfolio with these 3 tips

August 30, 2022

The internet is full of “gurus” who claim to know how to earn unimaginable, constant riches from crypto investment. The reality is that many of the same strategies that benefit traditional investment portfolios can also benefit crypto investments.

There are, however, a few key differences, such as the lack of regulation and the hyper focus on technical innovation and change. Below are three handy tips that will help you to safely grow your crypto portfolio – and a bonus tip on safe investment strategies to cap things off.

Choose the right platform

First and foremost, one of the most important steps you can take as an investor is to choose the right platform for your investments. There are a number of different apps and platforms you can choose from and all of them have their own unique selling points.

If you are already investing in traditional stocks, you may find platforms such as Robinhood appealing, as they offer investors the opportunity to trade in both traditional stocks and a number of different cryptocurrencies. However, if you want to focus primarily on trading crypto, you want to trade niche coins or you want the convenience of an exchange that is tied to your crypto wallet, you may need to look elsewhere.

Trading platforms such as OKX offer both a trading platform to users and a crypto wallet function so that an investor could theoretically check the Doge price and then buy or sell the Dogecoin that they already have in their crypto wallet. While it really comes down to consumer preference and the types of trading you want to do, choosing a crypto platform will provide you with more information for crypto trading.

Diversify your portfolio

Diversification is an essential aspect of investment in any and all financial instruments. Financial advisors have recommended allocating around 10% of your total investment funds in crypto and then investing the other 90% in funds that have more potential to provide you with long-term returns.

What diversification essentially does is to spread the risk to you and your investments, and it is wise to invest only around 10% in crypto because it is a highly volatile, unregulated market.

Try social trading

Social trading does not mean just following whatever the biggest crypto influencer says, and putting all of your life savings in Doge after Elon Musk tweets about it. Instead, social trading, or copy trading, is an investment strategy that involves you automatically copying the trade of a professional investor.

A number of different platforms, such as eToro, Coinmatics and 3Commas, allow traders to copy trade automatically. It may seem like a strange process but it is actually quite common and a great way for new traders to get a sense of what good and bad investing looks like.

Users who want to copy trade can select a professional trader based on their past performance, the number of other traders who follow them, or their risk appetite, and then link their account to the professional trader. After having linked your account, you will automatically make the same transactions as the professional trader – and you can sit back and learn from the pros.

Copy trading is not for everyone, especially as many people get into trading crypto because they personally enjoy the rush. However, it is a great way for beginners to start learning about the industry.

Safety first!

This is not a tip that will grow your crypto portfolio, but it is extremely important. The world of crypto trading and investment remains incredibly new and it is something of a Wild West situation in which, because it is such a new market, it is relatively unregulated.

What this means is that investors in crypto do not enjoy the benefits that other investment portfolios on other exchanges do, such as the protection of the US Securities and Exchange Commission. The lack of regulation has its benefits for those who are lucky and who happen to invest in the right crypto at the right time. However, the lack of regulation also means that investors need to exercise caution themselves.

You can be a safe and responsible investor by only investing what you can afford to lose and by diversifying your investment portfolio. There are many stories across forums and social media platforms detailing how people have lost their homes after investing everything in a crypto such as Terra Luna. If you are a safe and responsible investor, you will be able to invest more in the long run.

 

Leave a Comment · Money

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About Me

Hello all!!!! I'm Darcy and I recently started writing on My Zeo about health and fitness (and part of that important health equation is sleep!). As we are all super busy with life, I try to integrate how to stay fit, relax and be healthy and happy through everyday life.

Facebook

My Zeo

NEWSLETTER

TeraHemp

What Are the Benefits and Risks of Dental Implants?

Installing a dental implant into your jaw could be a permanent way to replace a lost tooth. But are . . .

Read the Post

Choosing the Right Equipment for Outdoor Activities

Being active outdoors provides health benefits, including improved mental and physical health, . . .

Read the Post

Exploring Holistic Therapies for Efficient Healing

Home healthcare is popular for holistic healing, as a practitioner can come into one's home and . . .

Read the Post

Everything You Need to Know About Bedsores

Bedsores are a common yet debilitating affliction that occurs fairly easily. They can affect anyone . . .

Read the Post

5 Things To Add To A Prenup

Getting married is one of the most exciting times of life. Most people get married because they want . . .

Read the Post

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn

Copyright © 2018 myzeo.com

Copyright © 2023 · Simply Pro by Bloom Blog Shop.