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How to manage your portfolio?

In order to reduce risk with capital and aim for returns, how to organize a portfolio is important. Many people may be wondering what kind of portfolio to build when investing in cryptocurrencies.

In this article, I will introduce how to create a portfolio of cryptocurrencies by investment style. I will also explain the points to note when building a portfolio, so please refer to it.

What is portfolio?

The term portfolio is used in various situations, but in the field of investment, it refers to “asset combinations and ratios.”

For example, when investing, if you decide in advance that “assets will be allocated to cash and deposits 30%, investment trusts 40%, stocks 10%, and cryptocurrency 20%”, the risk tolerance will be as intended. If you focus on controlling risk, you can increase the ratio of cash and deposits and investment trusts, and if you focus on aiming for returns, you can increase the ratio of stocks and virtual currencies.

Determining how to combine and ratio of assets in this way is expressed as “creating / assembling a portfolio.” If you want to succeed in investing, it is important to create an appropriate portfolio according to your investment policy.

How to make a portfolio for cryptocurrency trading

When investing, it is important to first decide the overall allocation of what kind of investment product and how much to invest. Another important point is how to allocate each product.

After deciding the outline first, how much cryptocurrency to include in the portfolio, and then decide on the cryptocurrency portfolio. Next, I will explain how to create a specific Cryptocurrency portfolio.


Bitcoin (BTC) is a representative of Cryptocurrencies. It is the world’s first Cryptocurrency, has the largest market capitalization, and is well known.

The fact that many investors own Bitcoin means that the price is extremely unlikely to reach 0. If you want to reduce risk and invest in cryptocurrencies, you should start with a portfolio with a higher Bitcoin ratio.

There are various types of Cryptocurrencies other than Bitcoin. Cryptocurrencies other than Bitcoin are collectively called altcoin.

For example, Ethereum (ETH) and BNB(Binance Coin) are typical examples of altcoin. If you want to invest with less risk, you should choose a cryptocurrency with a large market capitalization and a high profile among altcoins.

If a portfolio is formed by combining well-known altcoins centered on Bitcoin, the following allocations can be considered, for example.

Bitcoin 70%
Ethereum 20%
BNB 10%

If, while investing, you want to tolerate a little more risk and aim for a return, you can lower the Bitcoin ratio and increase the Altcoin ratio, or incorporate the lesser-known Altcoin into your portfolio. It would be nice to do it.

high risk and high return

If you are investing in cryptocurrencies, some investors will want to aim for big returns with high risk and high return. In that case, it is effective to lower the ratio of Bitcoin and increase the ratio of Altcoin.

Among altcoins, the cryptocurrency issued by the DeFi project is called “DeFi coin”. Some DeFi coins cost less than $1.00. If you own such a cryptocurrency and ride the wave of price increases in the future, you may be able to greatly increase your assets.

In the case of a portfolio made by lowering the ratio of Bitcoin and increasing the ratio of DeFi coin and also combining major altcoins, the following allocation can be considered.

Bitcoin 10%
Ethereum 15%
BNB 15%
CAKE 20%
BSW 20%
AFIB 20%

DeFi coins, which are volatile, can also be aimed at returns with short-term investments. In that case, one option is to decide on an allocation such as “60% for all DeFi coins” and fine-tune the type and amount of DeFi coins according to price movements.

What are the benefits of creating a portfolio?

Diversification is the basis for investing with reduced risk. If you invest all your money in one asset, you can’t keep up with price movements. However, if you invest in multiple assets in a diversified manner, even if the price of one product drops, it may be possible to cover it with the price increase of other products. Investing in a portfolio is a diversified investment.

In addition, by deciding the portfolio in advance, you can manage assets according to your own investment policy. Rather than blindly starting an investment, it is easier to get the desired result if you decide whether you want to invest with less risk or aim for a large return.

Portfolio in DeFi

In addition, anyone can become a liquidity provider on DeFi platforms such as ARIES FINANCIAL. You can not only HODL these coins, but also operate them on the platform to earn transaction fees.

Is it complicated and confusing? Read this article for more information. You can complete complicated operations in 1 minute and stand at the entrance of DeFi.

Is it magic? No, it’s Zap!


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