Bittime - Balance is at the heart of everything, including building a solid and sustainable crypto portfolio. Without proper balance, a portfolio can become vulnerable and unstable. In this article, we will discuss several important concepts for building a strong crypto portfolio from all aspects.
There's Always Room for Bitcoin
Nakamoto's portfolio model shows that an allocation of at least 10% of our portfolio to Bitcoin can provide higher overall returns. Bitcoin is not only an important asset in the crypto market, but also serves as an “anchor” that influences the movement of the entire market. Therefore, keeping Bitcoin in a portfolio can help build stability and sustainability.
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Various "Sector" Coins have Longer Life Spans
Coins with specific narratives such as gaming or memes tend to have short lifespans, usually no more than four months. In contrast, coins belonging to sectors such as L1, L2, and L3 have longer growth potential as their technology and platforms are used by various other projects to build narratives on top of them. A focus on sector coins can help “buoy” a portfolio when narrative coins experience challenges.
Leave 30% for Cash
The importance of having a cash balance in a portfolio should not be overlooked. By setting aside at least 30% of assets in cash (e.g., USDT, USDC), we can anticipate market downturns. Cash balances also allow us to take advantage of opportunities when prices decline by carrying out mean reversion to get better entries.
Limit Allocation to “Fun”
While it is important to keep the fun in investing, allocations to “fun” assets such as meme coins or NFTs should be limited. Set aside a maximum of 10% of your portfolio for these assets. Allocating more than that can be high risk and unhealthy for the portfolio as a whole.
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Conclusion
By applying these principles, we can build a balanced, strong and sustainable crypto portfolio. It is important to continuously monitor and adjust the portfolio according to market changes and our investment goals. With the right balance, we can increase the chances of success in our crypto investments.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
10 Ways to Build a Good Crypto Portfolio
Mistakes That Could Destroy a Portfolio in a Crypto Bull Run
How to Create a Crypto Portfolio: Hassle-Free
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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