How to Diversify Your Crypto Investment Portfolio?
10% to 30% – Top (trending) Coins
Invest a quarter of your funds in the top coins such as Bitcoin, Ethereum, XRP, Litecoin, etc. You can find the complete list here. These are market shifter currencies whose price change very frequently. So, limit your investment in these coins to not more than 30%. 40-50% – Popular Altcoins
Altcoins are the currencies that are created as an alternative to bitcoin. Some of the popular ones include NEO, Titan coin (TTN), etc. Experts strongly believe that altcoins are most likely to outperform bitcoin and other established coins. This is because they have a strong foundation along with great growth potential, profit structure, utility mechanism, etc.
There are many other similar altcoins with great potential. The risk with these coins is minimal while the return potential is high in the long term. So, most of your investment should go here.
ICOs and New Coins
There are roughly 50+ new cryptocurrencies launched every month. You can invest a part of your funds in these new currencies or ICOs. Again, rather than investing all the amount in a single coin or ICO, you should spread it across multiple projects to substantially increase the possibility of high returns.
Day trading is usually recommended for those who are looking for high returns in the short term. The catch is that you invest in a cryptocurrency and then sell it as soon as the price goes high. Cryptocurrencies that are highly volatile are perfect for this kind of trading. If you are going to day trade, make sure not to invest more than 10-15% of your entire portfolio, because the risk is very high in this market.
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