Cryptocurrencies are designed to serve many purposes

Cryptocurrencies are designed to serve many purposes. Main purpose of many is to pay the gas fees on their respective blockchains.

But in order to trade them in todays world, we added a fiat based price to most of them, and trade them for this value. 

So, i.e. trading is most common use nowadays, there are many strategies serving this purpose. Trading is a fairly easy and hard task at the same time. That's because it is centered around predicting future outcomes. But as Jack Ma said in this funny interview:

The part I'm talking about starts around 0:44 and ends at 0:54, but overall the whole conversation between Jack Ma and Elon Musk is funny and wholesome, I strongly recommend watching it.

So many strategies try to focus on different approaches than trying to predict the future, the one of them which is probably most vocal and successful at the same time is "Diversifying your Portfolio".

So how to diversify? What are rules, any tips? In this short guide I will try to lead you into conclusions and introduce you to different methods and ideas that may help you with diversifying your portfolio.

Master yourself, master the enemy" - In order to have successes across many planes, you need to understand your subconscious needs and tendencies, your temperament should be your main guide in what type of portfolio you should be holding. If you are impulsive and impetuous, a long term investment might not be for you. Also if you do not care much, and rather than checking your portfolio every now and then you tend to forget about it and you check it after a month, "low cap gems" may also not work very well. 

A good portfolio should contain many coins, serving different purposes and living in different ecosystems, but if you do not have much time to maintain it, you should pick at least one coin from a blockchain class they serve purpose. 

There are coins like Bitcoin, Ethereum or Cardano, those are Layer 1's which are a foundation for other coins and bigger environments, and this type of coins you probably always should include.

To see what is a Layer 1 crypto you should go

For a wide list of Layer 1 crypto coins you should go

A popular and also a wide list of coin you can consider is linked to gaming, those are more speculative and risky but can also bring you more gain.

To see more of Gaming coins you should go

Do not be afraid of stablecoins. Those are not the biggest investments but you always should have a stash of them in order to react quickly if situation needs it. 

To see available USD stablecoins you should go

As I wrote in the art about Layer 1's, there are whole ecosystems of coins which are built on top of L1 solutions, they serve different purposes than their foundation coins, but after doing some research you should be able to pick some of your favorite and add them to your portfolio.

For a list of BNB ecosystem coins you should go

For a list of Ethereum ecosystem coins you should go

For a list of Tron ecosystem coins you should go

For a list of Polkadot ecosystem you should go

If I were to create a whole list of available types of coins and their respective lists and some attributes, this article would take way to long to read comfortably, that's why if you are interested in types of coins, and what coins are included, you can do it

Some small tips

Always remember to DYOR ( Do you own research) and never rely on someone else opinion. Your loss can be their gain. 

Also, do not put money you are afraid to lose, if you feel uncomfortable with the amount of cash equivalent of your crypto, you should sell part of your portfolio, you can always buy it back when you feel like it, and you can't buy your mental health.

It's always okay to take some risk but more isn't always better, pick some safe investments which are supposed to grow steady, do not gamble too much if you don't want to get rekt.

Always keep your keys, passwords and codes to yourself, do not send it to anyone, do not take a photo or a screenshot of them, it may take some time to memorize it, or some money to buy a steel backup for your keys and phrases, but it may be worth to do so.

Do not be afraid, crypto came a long way and it has a long way ahead of it, it wont disappear over night. But that also doesn't mean you shouldn't sometimes do some small research about legislation and laws about it in your country of living.      

None of information in this article should be considered a financial advice, it's my own analysis and facts I wanted to share with this wonderful community.

If you want to support me you can do it here:

Reflinks for some passive income:

https://r.honeygain.me/ZACHW12AF3

https://p2pr.me/16518768406275a3e8c8002

Addresses:

0x4B5692110fF9Ba770b9EC5CEBA20849cF97496EA - BINANCE Smart Chain and Ethereum

addr1qxsktm5j0yusx00gg9735lrn7ada94n63dvy9g76nn5phms68c08evhlqngru7785nlh6qc20ll700v4pqtqktet3wkqwy07f5 - Cardano

TJevzMtsW7dwNM8amm9JE4fM4digjaegHy - Tron

1ApF4AYaQQthAQ4qMJftx3A3WaY4MfBVML - Bitcoin and Bitcoin Cash