HOW TO 100X YOUR PORTFOLIO; [PORTFOLIO MANAGEMENT TIPS].
Portfolio management it’s probably one of the most important things. that’s going to end up determining whether you’re actually successful in investing in cryptocurrencies. or not it is critical to understand how to maximize potential in your portfolio at the same time working to reduce risk. Think of your portfolio like a beautiful flower that needs to be tended to be watered, to be put out in the sun, have nice things said to it. Otherwise, it withers away and dies. this article will share some tips to help you manage your portfolio like a boss.
Let’s get into this topic. first off let’s talk about taking full advantage of your investments. because not fully using your assets it’s a pretty common mistake that a lot of investors are making and it’s a very costly mistake that a lot of investors are making. For example, if you can stake your coin you had better be staking your coin otherwise you’re missing out on some significant gains potentials you’re literally robbing yourself of gains.
Now if you don’t know if you can stake your coin. well, then why the heck not you should have definitely done some more due diligence before actually investing in that coin. but if you can stake your coin then find out how to stake your coin. there’s lots of guides online likewise assets like bitcoin they don’t have any staking rewards. but you still can earn on these by lending them out or using yield farming. there are of course trade-offs obviously but there are also benefits you need to ask yourself if the rewards are worth the potential risk. and if so then explore your options.
Because well a rate like six percent a year for bitcoin may not sound like a crazy amount that actually adds up a lot quicker than you realize. especially if you’re in this for the long term you’re holding your bitcoin on a multi-year time frame. the second tip is I have for you is to not be afraid to rebalance your portfolio. the idea here is simple when one of your bags starts pumping like crazy and as a result, starts taking up a larger percentage of your entire portfolio. then it may be time to consider trimming that position back nothing wrong with that normal healthy all that good stuff.
For example, if your ideal allocation for a coin is like let’s say 5% but that coin is like currently 25% of your entire portfolio then you may want to consider taking some of that off trimming it back a little bit. you don’t have to get right way back to your ideal percentage at least you know look at cutting back some of that and reallocating it to other positions. Maybe you increase your bitcoin position a little bit right that helps reduce volatility in your portfolio you can of course also get some stable coins always good have some stable coins on hand.
Plow those into a lending platform while waiting to enter your next position your next new coin maybe you’re just waiting to buy a dip on bitcoin or this coin you just sold. so even while you’re sitting in cash if you’re using defy yield farming or lending or something like that you can still be earning and getting more gains. and remember you can’t buy the dip if you don’t have any chips. is why stable coins are so important at any given time something like five to ten percent of my total portfolio is actually in usdc.
Half or more of that will be lending out over on block fi or I’ll have it over in a d5 protocol earning some sweet sweet yield obviously the risk parameters are slightly different. but the yields are pretty interesting now I’m not saying that five to ten percent that’s your ideal percentage to have for stable coins in your portfolio. that’s just what i’m doing and as a final note on this topic, i rarely allocate more than one to three percent of my portfolio into a new position. why well because this helps reduce risks that that coin goes zero well I lost one to three percent of my position and of course i can still capture significant upside if that thing does a 10x well that’s a lot of gains.
The third tip here i have for you today minimize your cost now this is an area that investors do not pay enough attention to. but which if you decide to ignore can really eat into your profits long term. now the three biggest fees that you will face as an investor in the cryptocurrency markets are gas fees, exchange fees, and withdrawal fees. gas fees on ethereum ludicrous often i only trade on uni swap .for example when i absolutely have to if i can get a coin on a centralized exchange that is where i get it that being said a lot of coins list first on uni swap. and so paying those fees gets you into a gem early.
Now if you don’t know where to find out where to buy a coin then you need to go to coingecko.com type in the name of the asset that you want to buy and then click on markets. it will show you all the exchanges where you can buy it . you can also look and see if your coin is available on another chain like the binance smart chain. for example which has much much lower fees than ethereum right now. the second factor here exchange fees uni swap actually charges 0.3 percent which is quite a bit to be honest.
coinbase can charge you up to 3.99 percent for buying on their broker service to trade on coinbase pro can actually cost 0.5% per trade which is some of the highest rates in the industry. meanwhile, binance has 0.1 fees and that drops a further 25 if you pay using the BnB token to pay for your fees now these seemingly small fees like 0.5 percent may not seem too crazy. when you click the buy button one time but add that up over time that’s a lot of lost money. this can literally cost you thousands of dollars and missed opportunities as your assets gain in value over time.
The third thing to keep in mind is of course the withdrawal fees. right now the average withdrawal fee for bitcoin it’s around 25 to 30 dollars. it’s a lot of money right so if you’re making a weekly bitcoin withdrawal that adds up really quickly that’s 120 bucks a month right there. that’s a lot so my tip here is to try to limit your withdrawals especially for the more expensive coins some coins you know it only costs a couple of pennies to withdraw them. so it’s not a big deal but for something like bitcoin maybe i want to do every every two months right so instead of spending 240 dollars on fees just spend 30 on fees. that’s a lot of extra bitcoin at the end of the day.
The fourth tip is to keep your investment time frames in mind now different assets they have different time frames and that’s okay. bitcoin for example it’s a very long-term hold for me. it’s a reserve asset i may never sell my bitcoin right or maybe in some distant future i’ll trade it for some land or something like that if i have to if maybe if i want to we’ll think about that. but by contrast, some of these hot new token sale coins, get in, get out that’s the kind of situation i may only hold those for a few months right depending on how they of course progress.
It’s important when entering a position to consider if this is a long-term position, a short-term position or maybe a medium-term position. so try not to get married to a coin that you’re only intending to be dating for a short time. can get you in a lot of trouble because if you don’t, then you may end up holding an underwater bag for four years during a bear market locking up your capital. it’s not fun been there don’t do it also don’t be afraid to update your opinion.
look man, things change and maybe your long-term hold. it loses momentum they fail to deliver technology they start losing market share for one reason or another. sometimes it’s time to just say it’s time to cut that we’re getting out. having the strength to admit that you made a mistake investing and to cut those losers mega important. 90 %of the coins i have cut out of my portfolio have ended up being the right call. sometimes they bounce back you know they don’t get all the calls right but more often than not they don’t even the ones that do bounce back i found better opportunities elsewhere again most of the time.
My final thought for this article ‘’diversifies’’ and not just in crypto but out of crypto. A lot of crypto investors are crypto-only investors and i get it considering the huge potential of this asset class. i understand why you’d want to be all-in on crypto. but i am not a crypto only investor although it is the bulk of my portfolio i am personally investing in stocks. for example, right i like renewable energy stocks i like electric vehicle stocks i like arc ETFs invested in quite a few of those.
Now, why do i invest outside of crypto in spite of believing that this is a top potential asset class. well because having uncorrelated investments is going to make riding out the bear market a heck of a lot easier. Diversification helps protect my gains and helps build my wealth long term. very important if you play your cards right you will achieve financial independence you will achieve financial freedom.
Anyway i hope these tips have helped you a little bit. your question for today what portfolio management tip do you have that has personally helped you manage your portfolio. let us all know down below in the comment section thanks so much.
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