The Cryptocurencies are very volatile, expect stablecoins as Tether, Gemini Dollar and other. It’s important to implement some type of strategy to manage your cryptocureency investment. You can understand what is managing your cryptocurrency investment, as protect investment against volatile.
Cryptocurrency term that represents the collection of all investments you own across all types of investment assets. For example, If you own 5 coins and 5 tokens, this means that your cryptocurrency portfolio composed 10 assets.
Key factors to consider when investing
The basic principle here is to buy when bears take over ( buy when market is red) and sell when bulls take over ( sell when market is green).
Always do your own research before investing in ANYTHING. There is over 2000 coins and tokens, the choice is yours. Here is two type of research- fundamental analysis and technical analysis.
Investors use fundamental analysis to evaluate the long term prospects. A traders use technical analysis as analysing price, searching for patterns and signals. We will make separate tutorials for this two type of analysis.
Personal knowledge and attraction
This is another one key factor. You must ask yourself those questions:
What cryptocurrency do you research?
In which nich you are grounded and have much knowledge?
4 type of coins
Yes, bitcoin is one type of cryptocurrency for your cryptocurrency portfolio. Bitcoin is coin father and investors have much trust in it. In time, when we write a article Bitcoin dominance is over 50%.
Second type of coin is Top 10 coins
Here is top 10 coins with biggest market cap. This type of coins are increasing a potential profits in future.
Third type of coins is Passive income provider
This type of coins are generating passive incomes. For example, when you stack Neo. you will earn Gas as reward. Another example is Pundi X. When you stack it, you will be rewarded with Pundi X. Another example for passive income coins are questions and forks. Simply you will be rewarded with free coins. We will make separate tutorials for airdrop and fork.
When you hold good portion of this type, you will be rewarded with coins.
The fourth type of coins is stablecoin
Stablecoins are using for converting crypto into “digital dollar”. Here is much stablecoins as Tether, Pax, TrueUSD, Gemini Dollar and other.
Stablecoins are protecting you from volatile. When you hold stablecoin, you can diversify your investment. For example, you putted all your money into cryptocurrencies and market starts bleed. You would lose portion of your investment. When you have stablecoins into your portfolio, simply you can buy again in dips.