This article is not financial advice!
Many friends come to me asking which cryptos should they hold in their wallets. As you probably know, this is not a "one size fits all" answer. That is the reason why I decided to make this article where I will try to explain which hodlings would be perfect for your kind of mindset.
Let's start:
- Conservative mindsets, maximalists, and beginners
100% Bitcoin
Those three kinds of mindsets I mentioned above will look for something renowned. Conservative people will always search for: security, stability, and mass acceptance. Bitcoin is a perfect fit for them. Maximalists already know that nothing is acceptable in the crypto industry besides Bitcoin. As you can guess, this is the best wallet for them. Beginners should also have this kind of portfolio since it gets them into the crypto space. It gives them the experience of price fluctuation, gives them the ability to exchange those BTC shortly after they learn what other projects the industry offers. This way, beginners have the opportunity to learn about the tech while having invested value in their hands.
- Unskilled long term hodlers
70-80% Bitcoin
30-20% Ethereum
Some people can invest larger sums of money into the crypto industry but are not willing to do their research for XY reasons. The most common reason is that they are older people that do not understand anything about computers and IT tech. Yet, they understand there is a blockchain and Bitcoin thing that they want to invest in. They also understand the importance of diversification.
- Skilled long term hodlers
10% Bitcoin
10% Dash
10% Monero
10% Digibyte
10% Chainlink
10% Cardano
10% Polkadot
10% Litecoin
10% Vechain
10% Ethereum
When I say "skilled" I mean people who did their research. Those people understood the power of some altcoins that resolve real-world problems or are just a better version of cash. Let's say that Dash, Monero, and Digibyte are just as good as Bitcoin was 5-6 years ago but give other values that Bitcoin does not. Some other coins and platforms are so good that shouldn't be overlooked.
- Gem hunters
- Nexus (NXS)
- Verge (XVG)
- Electroneum (ETN)
- Filecoin (FIL)
- Algorand (ALGO)
- Nano (NANO)
- Theta (THETA)
- Zilliqa (ZIL)
- Decred (DCR)
- Golem (GNT)
- Enjin (ENJ)
- Zcoin (XZC)
- Dogecoin (DOGE)
- Energy web token (EWT)
- And every other coin you consider has the long-term potential of growing up in price but has solid fundamentals. Even the exchange tokens would be a good idea to hodl since they've shown many times now their potential of going up.
Gem hunters are always looking for a new small coin that could explode to unseen highs. At this moment, the crypto space is full of coins and tokens with such potential. Nobody knows which of those will have 100-1000x gains. That's the reason why "gem hunters", after extensive research, invest in various projects. Let's go back to 1998 when Yahoo refused to buy Google for 1M USD. Just 4 years later, in 2002, Yahoo offered 3B USD for Google, but they didn't finalize the offer because Google wanted 5B USD. You know the rest of the story. Now imagine being there and having YHOO and GOOG in front of you, but you invested only in Yahoo because it's a more renowned, more stable, and more secure investment.
- Investor non-believer of decentralization
XRP
XLM
TRX
Defi platforms
...and many other centralized coins
Those are people that have trust issues with them selfs and didn't read the Whitepaper. They can't imagine the world of finance working without a central authority. They believe that blockchain is a good tech but it depends on banks how are we going to use it. This is why XRP is so high in price even if it's far away from Satoshi's idea and whitepaper. They are here to make money and don't care about anything else. Which is fine as long as they don't try to convince others that they are doing the right thing.
- Stakers
Tezos
Cosmos
Zilliqa
Algorand
Tron
Eth 2.0
and other coins that make you passive profits
Staking is slow, but still a good and easy way to make profits. You gain value just for hodling a certain coin. When you see only a 5% return on yearly basis, it seems discouraging, but imagine buying 10 Bitcoins 5 years ago and imagine being able to stake it (you can't stake Bitcoin). 5% per year isn't that bad at all considering that its value is constantly growing. Maybe Zilliqa has the potential of gaining an important part of the Ethereums market. If such a thing happens, its value would blow up to let's say $1 per coin. Now, having a staking reward of 10% per year doesn't look so small of a profit.
- IT skilled people with deep pockets
Dash
Zcoin (Firo)
Energi
Pivx
I'm talking here about masternodes. People confuse masternodes with staking. Even if it looks similar because you get rewarded for holding, a masternode is far more complex to maintain and keep secure from hacker attacks. Also, masternodes provide other values to the network that staking coins simply can't. It's an expensive way to start making money with crypto, but it's far cheaper than owning a mining farm. Yet, a person should be skilled to maintain a masternode. Masternodes are the future of crypto.
- People with less than $1000 to invest
It's hard to make one portfolio that can guarantee to catch up with the quality of other wallets I mentioned above. Nobody knows which coin is "the next Bitcoin". That's why a hybrid approach is the best in this case. Mixing a few of the portfolios is a way to cover a vast piece of ground in this industry. Diversification is key. Many won't agree with this approach. For those who don't, I would suggest picking one coin of each type:
- a store of value like Bitcoin
- a smart contract platform like Cardano, Ethereum, or Zilliqa
- an oracle like Chainlink
- a supply-chain solution like Vechain
- an instant transaction solution like Nano
- a privacy coin like Monero or Zcoin (Firo)
- we can go like this until I mention all the coins
On the other hand, if I was just entering the crypto world at this moment, I would rather go with the high risk - high reward type of investing. With that, I mean that people willing to risk their initial investment of $1000 should go with the Gem hunter wallet. It's much more likely to grow your portfolio this way than waiting for Bitcoin to make a 10x move. But, again, many went with this "gem hunter" mentality back in 2013. History tells us that investing in Bitcoin is the best investment so far. This time, the gems I mentioned have much stronger fundamentals.
That's it for this article. I hope this helps you build your portfolio, or at least think twice before investing in the usual coins most people promote.
Do your research!
Don't invest more than you can afford to lose!
Not your keys, not your coins!
Thank you Satoshi!
