How to diversify your cryptocurrency portfolio/fund ,Money management, Risk Management.
Ans:- let's assume you have 200$ and you want to trade/invest in cryptocurrency, Then you buy worth 200$ of Bitcoin . Let me tell you something that's biggest mistake of your life because you play ALL IN in BTC and then BTC can Vanish your fund like 'Thanos ' snapping his fingers and "BAM". So in that condition what you can do like 'Avengers' answer is simple you can diversify your fund in different manners, Below are few tips and Example to diversify :-
Tips:-
1:- Always keep backup money if you incurs in loss.
2:- Learn about trading at least basics.
3:- If you want to invest in crypto for short period then forget about investing in crypto,I strongly recommended that investment in crypto is for long purpose only like 1-10 years.
4:- For long term Purpose Buy in ladder and sell in ladder.
4:- Always figure out your Risk-Reward ratio
3:- Always invest those money you can afford to loose.
Example of Money Management in cryptocurrency:-
- You have 200$.
- Invest only 100$ and Keep 100$ as a Backup money.
- Now cut 100$ in parts.
- Invest 40$ in Bitcoin and trade.
- Invest 20$ in Etherium and trade.
- Invest 20$ in Litecoin & other coin.
- Invest 10$ in Trending coin.
- Keep holding 10$ for Backup purpose.
As you see in above example now you're thinking 'Is he mad or crazy ?, Follow this steps I'cant earn too much' so let me tell you something, with following this steps you can't loose too much.
If you're good in Technical Analysis and Trading then contact me in Telegram :- @Junkievirus I'll tell you how I can Manage my portfolio.
Thanks You
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or LTC jar :- LLCUmH1rPSuAfbsNj3ehtw2zb7TFRnijWu