Ok here we go, we have been waiting for this moment since 2017, we suffered a bearmarket but finally we are on the doorstep of a new upward cycle.
So what do you do? How do you structure your portfolio?
Before I start I will tell you I am not a financial advisor, these are my ideas, they are not financial advice and above all you alone are responsible for your actions. Take this article as food for thought to do your own research.
When the market is bear it is better to be exposed only in stable coin or btc, altcoins are better left alone.
But in a bullmarket we expose ourselves only to Bitcoin? Well if we want to play it safe yes, maybe we make a x5 or x10 if we are lucky and catch the peaks, but if we are in this world we aim to multiply the Bitcoins so staying exposed only to the king will not allow us to preform to the maximum.
I won't talk about specific altcoins in this thought but tried to give you an idea of what to bet on, then depending on your risk level it's up to you to select a high, medium or low ranking project.
Let's take an example if we are talking about oracles depending on your risk level you can take Link (low risk), Band (medium risk) or Dia (very high risk). You understand the game, don't you?
Well first of all even if you think we are in bullmarket don't abandon your bitcoins, ever.
There should always be a percentage of 30 to 70 percent of your portfolio in Btc, you never know if unforeseen events should pop up. I personally keep a percentage between 40% and 60%.
After that in a good portfolio you cannot miss a platform to develop smart contracts on, being a focal point this crypto, these crypto should be the second most important part of the portfolio. i would say between 10 and 30%. After that I would go in constant percentages on the following sectors;
-Oracle
-Exchange
-Defi
For oracles I don't need to tell you many words about the importance in the crypto world, for defi, I would choose between two or three projects in different areas such as dex, derivatives or lending. While for the coins of the exchenge can be useful to lower a little bit the risk of the portfolio being generally less volatile and with a well-defined core business.
The concept is not to reason on which currencies to hold but rather on which sectors to expose yourself to and in what percentage, only then would I reason on which currencies to invest. Small focus nobody takes away that in the single sector you can diversify on more projects therefore for example, I have decided that the oracles will be 10% of my portfolio, I will subdivide the oracles portfolio in the following way:
- Link 50%
- Band 35
- Dia 15%
and so on for the other sectors.
Be careful because if it's true that potentially increase the gain you potentially increase a lot the losses, remember that already the crypto market is extremely risky, exposing yourself in altcoin is even more so, and in altcoin with low capitalization is like throwing a coin.
Last two tips, for those who know what they're doing keep an eye on NFTs, also balance your portfolio every 2 weeks to bring it back to the conditions you initially chose.
Ps Give yourself a price target and stick to it, otherwise you risk getting out too late or before you have to!!!
