Sunday, April 21, 2024

How to Reposition Your Crypto Portfolio to Maximize Profits

One of the newest asset classes for people who have a little bit of a futuristic attitude toward their investing in cryptocurrency. The first cryptocurrency was Bitcoin, which emerged from nowhere to take the technological world by storm as it provided people with a new way to make and receive payments. In its wake, many other types of alternative coins started to crop up. What you’ll find now when you look at the cryptocurrency market is a bushel of different coins, many offering different applications of the blockchain technology that drives Bitcoin. If someone wished to do so, they could build their own investment portfolio using these coins.

It can be a somewhat complex part of the investment realm, something that you’ll find if you try to dig into the specific characteristics of the different coins. Some people might prefer instead to simply fund a trading account on a site in the manner of Bitcoin trader and allow for the robots to do the work for them. The cool thing about it is, if you have a little mathematical and statistical savvy, you really don’t need to know everything about every coin in which you invest. Just pick a few and then practice a little repositioning of assets when you need to do so. Here’s how to make it happen.

  1. Make Your Choices

Perhaps the best thing you can do in terms of cryptocurrency investments is to pick a bunch of different coins that are among the ones with the highest crypto market share. These coins, to have reached that lofty status, must have already proven themselves worthy and have likely been around a while. That will give your portfolio some solid stability to begin. However, many coins you buy, take that and divide it into 100. That will let you know how much of a percentage of your total investment capital should be in each.

  1. Making Adjustments

Now what you need to do is watch where the investments stand as time passes. If there is a particular coin that has gained a great deal of value, you should see if you can sell some of it to get the percentage back to the original amount. You should also be prepared to buy more of a coin that has dropped in value. This takes great discipline, as it might seem difficult to sell off winners and buy losers. But this strategy will always keep you buying low and selling high.

  1. Percentage Fudging

If, as time goes by, you feel like you want to scale it down and put more of your capital in certain coins while bailing out of others, just change your standby percentage. By using this re-positioning technique, you don’t need to worry about news related to the various coins. You can simply do the math and watch the portfolio grow with time as a whole.

Repositioning is a strategy that investors have been using with stocks for years. Cryptocurrency investments can work in much the same way.


Jim Bevin
Jim Bevin
Jim Bevin is a passionate writer, guest blogger, and a social media enthusiast. The primary focus is writing high-quality articles after in-depth research and make sure it is a readers delight. Information is key and he abides by the rule of writing articles that will appeal to a broader audience. He has published various articles on authoritative websites like TripOnTech, ABCmoney, SocialMediaExplorer ThriveGlobal etc.

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