fbpx

If you want to grow your portfolio month after month, whether you’re in a bull or bear market, you’ve come to the right place. I’ll tell how to construct a portfolio — step by step — so you can stop losing money in the market and start profiting instead.

Disclaimer: This is not financial advice, the opinions expressed in this article are for educational purpose only.

 

A Quick Introduction:

If you want to grow your portfolio month after month, whether you’re in a bull or bear market, you’ve come to the right place. I’ll tell how to construct a portfolio — step by step — so you can stop losing money in the market and start profiting instead.

But first …

The only difference between “smart money” and “dumb money” is the quality of decisions made. How do you make quality decisions? By having the right strategies in place.

Like a military general going to battle, you need to have proper strategies in place. With the right strategies, your capital will start to make more capital for you, over and over again. This is how you get rich.

And part of having an edge over the market is having a proper portfolio strategy.

 

Common Problems in The Crypto Space:

Because this space is still in its infancy, we have inexperienced investors that go “all in” on a project … by buying at the all-time high. Or they get easily spooked and drop their coins when there is a 20% dip.

Even worse, some inexperienced investors buy whatever is being shilled on mainstream news (for example, one popular news channel advised investors to buy Ripple at $4 and to sell it at $2. Buy high, sell low, nice!)

It’s time to shut off the mainstream news and dial the noise down. If you want a proper portfolio strategy in place, then you’re reading the right article.

With that said, let’s dive into the “meaty” content …

 

Exclusive Summary:

1. How to balance your portfolio

2. Investing into projects with solid fundamentals

 

How to Balance Your Portfolio Like a Pro (and why you should not over diversify)

There is no “one size fits all” advice because everyone has a different level of risk tolerance. However, if you don’t have a portfolio strategy in place, here’s an excellent, balanced approach: 33% BTC, 33% Alt Coins, 33% Fiat.

 

Why?

When BTC goes parabolic (like what we saw in January 2018), you can exit and cash out. BTC is the still the dominant cryptocurrency in the market, and your goal is to get as much of it as possible. Alt coins are used as a BTC multiplier, because you would sell your alts for BTC or ETH when you cash out.

You want 33% fiat because dips do happen, and that’s the time to pick BTC for cheap. Nothing is worse than seeing BTC tank 20% and not having fiat to buy some precious satoshis.

33% of your portfolio will be in alts; the alts you want depends on your risk appetite. You can have a mixture of medium and small caps or you have all small cap alts. Since you want a concentration of capital, you should only have 2–3 alts in your portfolio. Do your research and go heavy into the alts you believe in — that’s where the real money is made!

Example:
BTC (33%)
HT / NPXS (33%)
USDT (33%)

It’s simple but it works. With that said, let’s move on to the next topic …

 

How To Invest Into Projects With Strong Fundamentals

Here at CryptoGrinders, we only invest into projects with strong fundamentals (ie, top notch team, real world use cases, user adoption, a project that is already up and running). However, the vast majority of projects in this space consist of nothing more than a whitepaper (or a “working” demo that took 3 hours to program) — finding projects with strong fundamentals can be a real challenge.

Crypto is a bit tricky because we’re speculating on what others are speculating about a speculative asset class. There is definitely money to be made with hype coins. However, as the market matures, only the strong coins will survive; hype coins will be gone and forgotten (with the developers running away with the ICO money).

I recommend that you stick with solid projects. This means you need to read through the whitepaper, do a thorough investigation of the team, step back and think: “Will this have real world adoption? Will the team deliver or just run away with the money? Does the project even need blockchain technology?”

Here at CryptoGrinders, we recommended BNB and HT because exchange utility tokens are solid (if the exchange itself is good).

Get in early on a project, amass the tokens and wait for the marketing and hype to go live … that’s when you sell your tokens to FOMO buyers and exit with a huge stack of BTC.

 

IMPORTANT SIDE NOTE:

You must always take profit. If you held from January 2018’s bull run and didn’t cashed out, the market did a 60% correction. ETH went from $1500 per token to $600 (ouch), so you should keep an eye on taking tidy profit from your alts into BTC, and your BTC into fiat.

 

In Conclusion …

Part of being an investor is about having a winning strategy in place. Like a military general, enter the crypto battlefield with strategic intent … in this case, this means having a well-balanced portfolio.

There are more nuances when it comes to constructing your portfolio. However, if you have a balanced portfolio and invest in the right projects, you’re already ahead of the curve.

When you have a proper strategy in place, you will make money; bear or bull. With a well-constructed portfolio, you’ll sleep well at night while others lose sleep (or worse, panic sell their coins at the wrong time).

Thanks for reading and stay tuned for the next CryptoGrinders article. Found this article informative? Please upvote and join CryptoGrinders telegram channel.

 

See you there.

Brian Li

4 June 2018