Cryptocurrency investment portfolio. Formation of an investment portfolio of cryptocurrencies Formation of a portfolio of cryptocurrencies

When you bought your first bitcoin, everything was simple. However, over time, the number of cryptocurrencies in the investment portfolio tends to grow, the purchase and sale prices are mixed in the head, so counting everything manually is still a hassle. Therefore, today I would like to talk about several sites and applications that make it much easier to manage your crypto capital.

Blockfolio (Blockfolio)

Website: http://blockfolio.com

Blockfolio is a mobile application for full cryptocurrency portfolio management. With it, you can keep track of all your investments in one place, and at the same time observe the dynamics for the day, week, month, year and in general, both for the entire portfolio and for individual cryptocurrencies. It is also nice that you can set the display in fiat, the same dollars, euros, rubles, etc.

In general, the application is beautiful, simple, convenient and has a rating of 4.8 on the market. The Russian language is not supported, but special knowledge is not required: if you mastered it, then you can also handle the blockfolio.

CryptoCompare

Website: https://cryptocompare.com

CryptoCompare is an interactive cryptocurrency platform where you can not only keep track of your investments, but also monitor the market in real time + observe the latest trends and community sentiment. In order to start compiling your portfolio, you need to go to the page of the desired crypto, click "+ Portfolio", specify the number of coins and the purchase price, and, if desired, on which exchange or which wallet they are stored.

On the cryptocurrency page in CryptoCompare, you can view detailed information about the coin, charts, candles, trading statistics, orders, and the latest news, as well as subscribe to significant events and rate changes. In addition, the site has a fairly strong community: here you will find a lot of information for beginners, which allows you to learn how to work with the crypt and gain fundamental knowledge about the market, and reviews of exchanges, wallets, mining equipment, and discussions with guides.

There is no Russian language, but there are rubles and statistics on trading in the BTC/RUB pair and, in particular, . A trifle, but nice.

Alt pocket

Website: https://altpocket.io

Altpocket is a service that was originally created for the management of cryptocurrency investments. Among its main advantages (well, what is there to hide!) - a beautiful clean interface, ease of use and visibility. For example, data import is very convenient: just add API keys and the system will automatically collect information about transactions, taking into account the exchange rate at the time of purchase. In particular, automatic capture with and is supported.

Altpoket supports a large number of altcoins and shows the dynamics of profit over a certain point in time both for the entire portfolio and for each coin separately. You can completely customize your personal account using various widgets. From exotic - social feeds. Why they are needed is not clear, but since the guys decided to do something beautiful, then without statuses with emojis, probably nothing.

TabTrader

Website: https://tab-trader.com/

Although TabTrader Bitcoin Trading is not positioned as an application for tracking investments in cryptocurrencies, it shows the full balance of the entire portfolio and makes it much easier to control your portfolio. In fact, it is a trading terminal that supports more than 500 cryptocurrencies and 20 exchanges, including Poloniex, Bittrex, Bitstamp, Bitfinex, EXMO, Coinbase, Kraken, Gemini, Justcoin, Huobi, ANX, ANXPRO, BitBay, Bitmarket, BL3P, Bleutrade, Bter, BTCChina, Cryptsy, Gatecoin, HitBtc, ItBit, Mercado Bitcoin, QUOINE, Vaultoro, etc.

In general, the features of TabTrader are pleasing: direct cryptocurrency trading from charts, orders in crypto and fiat, order builder, transaction history, information on coins, rate charts, push notifications when a certain price is reached, PIN protection, desktop widgets, and also news from CoinDesk, Bitcoin Magazine and Reddit. By the way, according to the creators, API keys are stored directly on the device, encrypted with a PIN and used exclusively for exchange requests, so there is no question of any drain of funds.

All of these tools are very cool, but I know what you are thinking: it would be great if you could buy cryptocurrency, form a diversified portfolio, track its status, and at the same time receive passive income in one place. And now it's really possible in , which runs on a smart contract and makes investing in cryptocurrency simple and straightforward.

Read my review to find out the details and start earning on cryptocurrencies with minimal risk and effort. Join now!

20.01.2018

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An important feature of the cryptocurrency market is high volatility. The price of even the most stable coins is constantly changing. Sometimes daily exchange rate fluctuations reach 20-30%! Under such conditions, many traders have abandoned investing in one cryptocurrency and switched to using cryptocurrency portfolios. What are these portfolios? How do they differ from traditional investment instruments? How to form a cryptocurrency portfolio? Let's figure it out in this article.

What is a cryptocurrency portfolio?

A cryptocurrency portfolio is a collection of an investor's cryptocurrency assets that he has brought together to achieve a specific goal. Obviously, this goal is earn on the growth of the exchange rate selected cryptocurrencies.

In essence, a cryptocurrency portfolio is a type of investment portfolio. And the main logic of the formation of one or the other is the diversification of investments. That is, money should be invested in different assets to reduce the risk of loss when their value falls.

If you invest $1,000 in one asset, then when its price collapses lose all investments. And if you break investments into three, five or even ten assets, you will lose only the amount that you invested in the failed asset. Or even offset the loss at the expense of profit from other assets.

However, there are many differences between a cryptocurrency portfolio and a regular investment portfolio:

• The concept of diversification in a cryptocurrency portfolio takes on a new meaning. If the assets of a conventional portfolio are divided into stocks, bonds, currencies, real estate, and so on, then the main asset of a cryptocurrency portfolio is cryptocurrency. Diversification is achieved not by investing in different assets, but by breaking down one underlying asset. That is, you invest in cryptocurrency, but in different tokens - in BTC, ETH, XRP and others.
• Creating a cryptocurrency portfolio is much easier. If to form a traditional investment portfolio you need to open current accounts and draw up the relevant documents, then to create a cryptocurrency portfolio you only need an account or a multicurrency crypto wallet.
• The cryptocurrency portfolio shows a lower bar for entry. According to experts, it makes sense to create a traditional portfolio with a starting capital of several thousand dollars or more. A crypto-currency portfolio can be drawn up, even if you have only $300 for it.

The high volatility of cryptocurrencies allows make a profit even with minimal initial investment. The main thing is to correctly compose a cryptocurrency portfolio. Today there are about 1000 different cryptocurrencies, but, obviously, not all of them can boast of high investment attractiveness.

How to choose assets for a cryptocurrency portfolio?

As we have already found out, the main rule of a balanced cryptocurrency portfolio is a high level of diversification.Experienced traders advise add from three to nine cryptocurrencies to the portfolio. And they name the main criteria for their selection.

• Perspective.First of all, you need to analyze whether there is some original idea behind the cryptocurrency, does it have practical application, does it solve the actual problem of users? Does it offer better transaction anonymity than other cryptocurrencies, or does it provide a faster exchange of assets?
• Exchange rate trends.Here it is necessary to take into account the behavior of the cryptocurrency over long periods of time, the presence of sharp jumps and declines, the current market rate, as well as the total and average daily trading volume. If the trading volume grows, it means that new capital is steadily pouring into the cryptocurrency. At the same time, it is important to analyze whether this is due to the naturally growing popularity of cryptocurrency. Or is the growth in trading just the effect of using a fraudulent scheme? Experienced traders find the answer to this question by closely monitoring the charts of changes in cryptocurrency market indicators. Many more advise add only cryptocurrencies with a market capitalization of $100 million or more to the cryptocurrency portfolio.
• Thematic community.For investment, it is better to choose cryptocurrencies that have an active community behind them. Give preference to projects with feedback, for example, with an official community or an open developer platform.
• News background.It is very important to track how often and in what context cryptocurrency is mentioned in the media. Do they write about it on rating web sites? Do they discuss on thematic forums like bitcointalk.org? Doesn't the hype around the coin remind of the manipulation of newsbreaks?

According to experts,the main rule for creating a cryptocurrency portfolio– a competent ratio of well-known, expensive and cheap, but promising cryptocurrencies. There can be a lot of working investment schemes.

How to form a cryptocurrency portfolio: basic schemes

Beginners are better use the so-called conservative portfolio. It is less risky and therefore safer for the investor. Form it as follows:

• top cryptocurrencies - 80% of investments;
• less popular, but promising and sought-after coins - 15%;
• inexpensive cryptocurrencies with the prospect of growth - 5%.

Using this scheme, you minimize investment risks because you invest the bulk of your capital in proven assets. Only 5% of investments fall on risky projects, and if they fail, you will not lose much.

For experienced investors, the so-called aggressive portfolio is also suitable. The share of proven cryptocurrencies in it is noticeably decreasing, and investments in ICO are also added - very popular but risky instrument of the cryptocurrency market.

• major cryptocurrencies (for example, bitcoin and) - 60%;
• popular altcoins - 25%;
• ICO - 15%.

Many investors prefer to use the Buy&Hold strategy. Its essence is simple - you need to buy cryptocurrencies with the prospect of long-term growth and not sell coins until their price reaches a peak value.

Experts point out that now it makes sense to invest and into so-called "protocol coins". There is every reason to believe that with the active development of blockchain technologies, cryptocurrencies will become more and more integrated with the real sector of the economy.

A strong impetus to development is given to cryptocurrency platforms, which offer not just another coin, but a new model of economic interaction based on the blockchain. These include , EOS, and others.

Most traders advise investing in the most popular coins that are in consistently high demand among users. These include top twenty cryptocurrencies in the world ranking.

But pay attention: when choosing cryptocurrencies, you need to focus not on the ratings of cryptocurrency exchanges ( they are often overpriced), but on data from authoritative sources. For example, it is very convenient to use the analytical summary of the information portal CoinMarketCap.

Consider examples of cryptocurrency portfolios that can bring profit to investors not in theory, but directly in practice.

Examples of cryptocurrency portfolios

Option 1:

• Amount of investment: 250 dollars.
• Strategy:invest in cryptocurrencies, the price of which naturally grows. Give priority to a cryptocurrency with good technical capabilities (high anonymity of transactions).
• Investment distribution:$128 (50%) - ZEC, $82 (34%) - XMR, $40 (16%) - LTC.
• Portfolio contents: 0.85 ZEC, 1 XMR, 1 LTC.
• Net profit for 1 month: 111 dollars.
• Yield: 44%.

Option 2:

• Amount of investment: 1000 dollars.
• Strategy:invest the main amount in a top cryptocurrency, distribute the rest between a popular fork and a promising “protocol coin”.
• Investment distribution:$800 (80%) - BTC, $150 (15%) - BCH, $50 (5%) - XRP.
• Portfolio contents: 0.25 BTC, 0.44 BCH, 304 XRP.
• Net profit per month:$674.
• Yield: 67%.

Option 3:

• Amount of investment: 3000 dollars.
• Strategy:invest the main amount in the top cryptocurrency, invest part of the amount in a popular fork, distribute the rest between two rating and three "protocol coins".
• Investment distribution:$2,400 (80%) - BTC, $450 (15%) - BCH, $150 (5%) each - ETH and XMR, $50 (1.6%) each - MIOTA, XEM, EOS.
• Portfolio contents:0.76 BTC, 0.44 BCH, 0.69 ETH, 1.84 XMR, 114 MIOTA, 287.51 XEM, 86.66 EOS.
• Net profit per month: 2070 dollars.
• Yield: 69%.

The above calculations use changes in the exchange rate of cryptocurrencies from December 2016 to January 2017 according to CoinMarketCap data.

It's obvious that the portfolio yielded the highest return with the third investment distribution option: 80% - top cryptocurrency, 15% - a new popular cryptocurrency, 5% or less - inexpensive promising projects. That is, the conservative portfolio provided the maximum profit.

In addition, the high return was affected by the amount of start-up capital (69% return on an investment of $3,000 versus 44% on an investment of $250).

Experts point out that this trend is relevant today and will continue throughout 2018. The conditions for the formation of a high-yield cryptocurrency portfolio are:

• several thousand dollars of start-up capital;
• priority for top cryptocurrencies;
• careful investments in less popular, but promising projects.

Analysts have already named five cryptocurrencies, which you need to focus on when forming a cryptocurrency portfolio in the current year. These are bitcoin, ethereum, and.

How to form a cryptocurrency portfolio correctly

The easiest way is to create a portfolio on a cryptocurrency exchange. In fact, the list of your assets on the stock exchange is your investment portfolio.

However, much safer storage of assets in . Experts advise opting for hardware wallets from Trezor and Ledger. Just decide on the cryptocurrencies for your portfolio and choose a multi-currency wallet that supports the coins you need.

If you are more accustomed to working with investments on a cryptocurrency exchange, it will not be superfluous use additional software. For example, the Satoshi Pie program will help distribute funds between assets and track cryptocurrencies in real time.

To the process of forming a cryptocurrency portfolio should be approached with the utmost care. and try not to make the typical mistakes of inexperienced investors:

• Wrong choice of cryptocurrencies. Often, novice investors are led by an artificial hype around cryptocurrencies or invest in the first coin they come across, which seemed promising to them. By doing so, you risk losing your investment. We have already written above how to choose cryptocurrencies for investment.

• Unprofitable allocation of funds.If you do not have experience yet, use ready-made schemes to form a cryptocurrency portfolio. You should not distribute investments "by eye" - there is a high probability that you will not see any profit.

• Ignoring security requirements.Hold portfolios on trusted exchanges or secure crypto wallets. In the event of a hack, cyber attack or stock market crash, you will lose your investment.

• Lack of flexibility.Today it is better to invest in some cryptocurrencies, and in a few months - in others. Therefore, the portfolio must be flexible - from time to time remove coins from it that are losing value in the market and add new, more promising cryptocurrencies.

• Untimely purchase and sale of assets.Any cryptocurrency should be bought at the minimum price, and sold at the peak. Even if you have chosen promising coins, but bought and sold them without adhering to this rule, the return on investment is noticeably reduced.

Is it worth creating a cryptocurrency portfolio at all?

Definitely worth it.

In conditions of high asset volatility, investment should be diversified. And cryptocurrency portfolio - the best option in order to make money on changes in the cryptocurrency exchange rate, minimize financial risks and understand how the cryptocurrency market works.

What currencies should you invest in in 2018? How to properly distribute your money? How to make an investment crypto portfolio? These are the questions we will address in this article.

Does it make sense to invest in cryptocurrencies?

Digital currencies are now gaining incredible popularity and we should expect this trend to develop in the coming year, so you should think about how to most rationally distribute your funds by investing in this industry.

The main advantages of investing in coins is that you can start with small amounts of money and control all receipts to your accounts yourself, and proper storage will protect you from losing your savings.

Investment Strategies

The first rule in building a balanced portfolio is diversification. It must be varied.

Experienced investors advise to allocate their investment capital in this way:

About 80% to invest in safe and reliable coins that are in the first places in terms of capitalization.

15% to invest in promising currencies that are in demand.

5% - to low-cost projects that demonstrate potential.

If you are not averse to taking risks, then you can include such a crypto market tool as an ICO in your portfolio. In this case, the capital will be distributed as follows:

About 60% are crypto-giants such as bitcoin, ether;

25% - altcoins;

15% - ICO.

In a cryptocurrency portfolio, it is important to correctly allocate funds between large market players and low-cost promising projects

The most profitable strategy is to buy for the long term ("buy & hold"). This is especially true for bitcoin. Today, many people invest in it in the hope that over time it will become a real alternative to the existing financial system.

Be sure to buy cryptocurrency on a correction, or better on a good correction. It happens regularly in the market.

Principles of selecting altcoins for investment

You should pay attention to:

1. Perspective of the system: originality and the possibility of practical application of the idea;
2. Rate dynamics (over a long period of time);
3. Community and development team

Overview of promising currencies in 2018

Bitcoin (BTC)

Bitcoin is the backbone of any crypto portfolio. This is the first cryptocurrency that appeared back in 2009 and is not going to give up leadership in the near future.

Forecasts for this currency give different. But in general, Bitcoin shows a stable increase in price over the long term. It has good liquidity, this currency is trusted, more and more merchants accept BTC for payment.

Ethereum (ETH)

A serious player in the cryptocurrency market, who breathes in the back of bitcoin. It is a platform on which decentralized applications are created. The main feature of this system is smart contracts, the execution of which is provided by computer algorithms. The value of ETH tokens soared after large corporations such as Microsoft, Deloitte, Amazon, JP Morgan, Toyota and others showed interest in the platform.

Ripple (XRP)

This platform with a capitalization of more than 7.5 billion dollars closes the top three leaders. The currency is aimed at working directly with banking institutions and allows you to make a payment in any currency in a matter of seconds, regardless of where the sender and addressee are located. Another advantage is significant savings on commissions from each transaction.

Litecoin (LTC)

Unlike BTC, Litecoin allows you to conduct transactions much faster, it has a simpler algorithm for generating tokens.

Dash (DASH)

This platform with a two-tier architecture positions itself as a global payment system. Its main feature is the privacy of payments and the high speed of transactions. Anyone who purchased Dash at the beginning of the year for $10 per coin can already sell each token for $640 today.

Buying and storing cryptocurrencies

The purchase of coins is carried out on cryptocurrency exchanges. The most reliable ones include Bitfinex, Poloniex, Bittrex, EXMO, LiveCoin.

Before making a purchase, you need to find the following information:

• site conditions;
• supported deposit and withdrawal options;
• commission rates;
• the availability of the necessary coins on the exchange;

When working with large amounts of money, you must additionally pass user verification.

After you have formed your portfolio, you need to regularly monitor changes in the dynamics of exchange rates in the market and look for new profitable options for future investments.

As a secure option for storing your funds, we offer offline wallets. However, if you prefer online services, then you should remember that your wallet must be protected by a complex password, which must then be stored in a safe place.

The main risks that you may face when investing in cryptocurrencies are:

1. Sharp jumps in the exchange rate
2. Hacking the exchange or arresting servers
3. Robbery
4. The “low base” effect is a situation in which the developers artificially inflated the price of a cryptocurrency by several times, creating the risk of returning the value of the coin to its original level.

Conclusion

Investments in cryptocurrency next year are promising. The serious intentions of the state authorities regarding the crypto industry indicate that these technologies will be introduced over time and it will be better if you are already ready for them.

Cryptocurrency investment portfolio for 2018 will allow properly allocate your assets and get a guaranteed profit. In fact, it is a multi-currency wallet, which contains several types of digital coins. Using this tool, it is possible to minimize your losses in the event of a sharp drop in the price of one of the tokens, because there is always a chance that the other, on the contrary, will rapidly rise in price. To determine the most suitable investment options, it is worth exploring.

Formation of an investment portfolio of cryptocurrency

You should start forming an investment portfolio of a cryptocurrency by determining your financial level and selecting types of digital assets. Experts advise one way or another to give preference to expensive coins, so you should be prepared for solid spending.

Remember that you want to invest this money for the long term, which means that for some time it will not be available for normal use.

You also need to decide how you will distribute your fund: how many parts you will divide and what shares each cryptocurrency will have. And you also need to keep in mind that your funds should not lie dead weight, you need to learn how to effectively manage your portfolio - sell and buy assets on the stock exchange in order to get really tangible profits.

It makes sense to form a multi-currency wallet for investments if you plan to make a profit in the long run- at least six months, or even a year or two. It is during this period that many digital coins that have a low cost now can grow significantly. It will not work to create a cryptocurrency investment portfolio without investments, you will need at least a minimum capital, because initially you will purchase assets on the exchange to replenish your account. The smallest limit is not set, but experts advise investing today from 900-1000 USD.

Opening a portfolio online

An investment portfolio can be opened both online - directly on the exchange, and in the form of a wallet on a PC.

• The first option is more convenient if you plan to quickly monitor exchange rates and regularly buy and sell digital assets.
• The second one is suitable for those who make the main bet on currently low-yielding coins and plan to sell them profitably sometime later.

It is worth noting that it is most profitable to buy new cryptocurrencies at the time of the ICO, so it makes sense to monitor the news about the emergence of startups.

How to build a portfolio

From what to form an investment portfolio - a direct question. And experienced traders give an unambiguous answer to it: at least from 4 different cryptocurrencies, although there may be more. Optimal investment distribution option: 40% - bitcoin, 30% - ether, 20% - tokens that have already shown themselves to be promising, the rest are newbies, which they began to talk about from the moment they appeared (or even before it). You should not include virtual assets in the wallet that have fallen sharply in price due to unfavorable news or internal problems, they may no longer rise. It helps to determine the level of profitability, at which stock charts are examined.

Experts advise giving preference to Bitcoin because even at the time of the fall, it remained the most expensive cryptocurrency. Close behind him in this indicator is the broadcast. Also in the top five are Litecoin, Dash and Monero - they should also be included in the investment portfolio. Among coins with a low price, which, according to forecasts, will definitely grow, Zcash, NEM, EOS, Bitcoin Cash, etc. deserve attention. You need to regularly clean up your multicurrency wallet: check the exchange rates of your assets at least several times a week, buy or sell some by adjusting the proportions. You can increase the size of the initial investment if you have already been able to make a tangible profit and are confident in the correctness of the chosen strategy.

Video: Beginner Basic Crypto Portfolio

Digital currency has two uses. It can be a means of payment or . For those who decide to make money on fluctuations in the prices of virtual money, it is very important to be able to properly manage their investment portfolio of cryptocurrencies.

If you decide to invest

Due to the not always predictable behavior of bitcoins and other digital currencies, it is difficult for traders and speculators to navigate the issue of managing an investment portfolio.

Well-known bitcoin entrepreneur Anari Sengbe says:

Choosing the right cryptocurrency portfolio is like choosing the right horse at the races.

Today, it is very common to meet investors who have a lot of cryptocurrencies in their trading portfolio. Managing all of them, especially when, is very difficult and tiring.

Platforms to manage your portfolio

CoinTracking is a platform that analyzes your trades and reveals the amount of profit or loss from them. It generates prices for thousands of cryptocurrencies derived from forty different . The app even provides tax filing services. It is a reliable analytical tool for every speculator or investor. After all, timely and correct information is the key to the success of any trader.

Coindex is a tool that offers candlestick chart analysis. The listing on various world exchanges is also revealed to the user.

CryptoCompare is an application available for activation on iPhone and Android. It offers the investor cryptocurrency price data from several leading exchanges.

Being able to manage your entire portfolio without moving from one platform to another saves you a lot of time and money.

How to invest

Anari Sengbe believes that when it comes to managing a portfolio of cryptocurrencies, . The asset you have chosen must at least double in value during its stay in your portfolio (say 6 months).

The entrepreneur also explains:

It is necessary to keep up with the latest developments in the cryptocurrency market. And they change very quickly. To follow the latest news, you need reliable sources.

In conditions of high volatility of the cryptocurrency market, the lack of reliable information can lead to significant price losses.

The ability to manage a portfolio of cryptocurrencies from one central point solves many investment problems.

What lies ahead for us

The cryptocurrency ecosystem is evolving at a rapid pace. As the role of digital currency in the global economy grows, countries and governments are becoming more and more interested in recognizing cryptocurrencies and using them for their own purposes. Such a combination of circumstances will cause a large influx of information.

It will mean . And here you will need the ability to manage an investment portfolio.

The development of the above platforms that process information, eliminating unnecessary ones, is the most correct solution.