CRYPTOCURRENCY | BLOCK CHAIN
Building a killer cryptocurrency portfolio is easier than you think. In this article, I'll introduce you to a five-step approach to building a more secure crypto wallet.
Many investors are inundated with all the hype on YouTube, Reddit, and other social media platforms screaming about “the next big thing in crypto,” “this will replace Bitcoin (BTC),” or “this two-cent altcoin will replace to Ethereum (ETH) by 2025.”
They buy the hype and altcoin that many yell about without doing any research, then buy the coin, usually at its all time high (ATH), and then end up selling it after it crashes to earth like a SpaceX. test flight.
Building an amazing cryptocurrency portfolio can be challenging with so many digital currencies available. Everyone has heard the sage advice: "Don't put all your eggs in one basket."
Therefore, they think they must have real estate, precious metals, stocks, etc. While that's not a bad strategy, you should also spread your investments across many cryptocurrencies.
Sure, buying BTC and ETH is too expensive, but who says you can't buy $10 of each? You can buy satoshis. You can own parts of an ETH altcoin.
If you have an investment strategy, you can find an exchange to meet your goals. Who can say what will happen in the next bullfight? Your $50 worth of ETH could 100X.
While it may not make you a crypto millionaire, $50 Shiba Inu created more than one crypto millionaire in the latest bull run. However, what could be more crucial is having an exit strategy. Paper earnings don't pay rent.
Don't be greedy. If you believe in the stories, more than 77% of crypto millionaires have retired from that distinction since November 2021.
Withdraw what you need to build a new home, buy a new car, or take a vacation.
A day in the life of a crypto millionaire | A SIDE OF ME YOU'VE NEVER SEEN!
Don't believe the hype. This video was uploaded to YouTube by crypto jokes.
Five Steps to a Killer Cryptocurrency Wallet
Below are five key steps to building a great cryptocurrency portfolio.
Set your goals
Before you start investing in cryptocurrency, you need to set your goals.
Are you looking to make a quick profit or are you going for the long haul? Do you want to build a diversified portfolio or focus on a particular currency?
By answering these questions, you can clearly understand what you want to achieve, which can guide your investment decisions. Remember, they are your “eggs”, so whether you want just BTC, ETH, just decentralized finance (DeFi) altcoins, or all artificial intelligence (AI) coins, that's up to you.
develop a strategy
Once you've established your goals, it's time to develop a strategy.
One popular approach is dollar cost averaging (DCA), in which you invest a fixed amount of money at regular intervals. This helps reduce the impact of volatility on your portfolio and ensures that you take advantage of opportunities.
Let's say you can only afford $100 per month. For example, you could buy $10 worth of ten currencies on a monthly basis. This can help reduce risk and ensure that you are not overly exposed to any one currency.
Consider investing in different altcoins, such as privacy coins, P2E tokens, or smart contract platforms, to further diversify your portfolio.
Crypto Portfolio 101: Beginner Tips for Maximum Profits! 📈
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Use a killer cryptocurrency wallet and tax tracker
As you start to invest in cryptocurrencies, it is essential to keep track of the performance of your portfolio.
A cryptocurrency portfolio tracker can help you monitor your investments, track your gains and losses, and identify trends in the market. This can help you decide when to buy, sell, or hold your assets.
One of the most trusted crypto sniffers on the market is coin ledger with more than 400K users. You can quickly import transactions from exchanges and wallets, preview the report, and generate a tax report, even if you're an expat living abroad like me.
It will also make it much easier to file your taxes at the end of the year. Trust me, the IRS is watching you. Any purchase, sale or exchange could be a taxable event.
Even if you use your DOGE coins at Petco to buy dog food, you may be subject to tax. Always consult a tax advisor and let a professional do your taxes. You may be able to claim the expense next year.
Buy different types of altcoins to diversify your portfolio
Bitcoin is the best known and most expensive cryptocurrency, but only one of many options.
There are almost 20,000 altcoins, each with its own unique features and benefits. Investing in different types of altcoins can further diversify your portfolio and potentially increase your returns.
It is essential to do your own research (DYOR) before investing in any altcoin. Many cryptocurrencies are highly speculative and can be risky investments. Make sure you understand the technology behind each coin, the team behind the project, tokenomics, and any potential risks before investing.
Also, read tom handymanarticle of , 4 essential things a new person should know when investing in cryptocurrencyfor more information on this topic.
DO NOT leave your killer cryptocurrency portfolio on the exchange
Always DYOR, never use money you cannot afford to lose while investing and buy a reliable "cold wallet" to store your private keys. The most popular is the Coxmic Purple Ledger Nano X with Bluetooth.
Don't be lazy and leave your valuable NFT trading cards and P2E tokens on an exchange. That is equivalent to leaving them in a box. The house or exchange could burn down, get hacked, or go bankrupt.
Yes, your house could also burn. But with a Ledger Nano X, if you lose it, just buy another one, enter the keys, and you'll still have access to your NFT and P2E tokens.
Chainalysis identified $3.8 billion in cryptocurrency hacks last year, which is 15% more than in 2021 ($3.3 billion) and drastically higher than the $500 million stolen in 2020. — kiplinger.
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Final Thoughts on Building Your Killer Cryptocurrency Wallet
While cryptocurrencies have the potential to generate high returns, they also carry significant volatility risk.
The value of digital currencies can fluctuate rapidly and dramatically, which can lead to significant gains or losses.
Therefore, it is crucial for DYOR. “Don't believe the hype” and invest only the money you can afford to lose. Don't invest your life savings or money needed for essential expenses like rent or bills.
Note: This post contains affiliate links. read my disclosure statement for additional information.
Stephen Dalton is a retired US Army First Sergeant with a bachelor's degree in journalism from the University of Maryland and a Certified Editor of the US Chicago Manual of Style in English. He is also one of the best writers in nutrition, investing, travel, fiction, transportation, virtual reality, NFL, design, creativity, and storytelling.
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