How to build a cryptocurrency portfolio?

Consider the Industry Another thing to consider when building your cryptocurrency portfolio is the industry that each coin is targeting. There are a couple of different ways you can approach this. Diversify Across Industries Once again, diversity is key.

How many crypto assets does a portfolio own?

As a result, the portfolio owns 20 different crypto assets from a range of different markets. This is, however, just a simplified example of cryptocurrency portfolio allocation. Investors should determine their own portfolio weighting and chosen projects, as per their own financial goals and risk profile.

What is crypto investing and how does it work?

This means that instead of investing the entire capital in one lump sum, the investor will split each crypto asset purchase over an extended period of time. For example, let's say that the investor has $5,000 that they wish to allocate to their portfolio

What is the purpose of crypto portfolio allocation?

Therefore, the overarching purpose of crypto portfolio allocation is to spread the risk across many different projects. First and foremost, investors should ensure that their portfolio allocates funds to established, large-cap cryptocurrencies. Bitcoin and Ethereum represent good options here.