Cryptocurrency is a volatile asset that can lead to financial losses.

  Recently, I am very often asked how 2017 is fundamentally different from 2021.  In addition to such key and important differences as the emergence of regulation, legal framework, adoption of cryptocurrencies by traditional financial institutions, I would note a completely different assembly of the investment portfolio.  After a huge number of scam projects, the main asset in 2017 was Bitcoin, which often occupied 90% of the portfolio.  Today, the situation is fundamentally different - despite the fact that BTC is still a key asset for making money, there is a fairly large number of assets on the market that can and should be used to diversify your portfolio.

  The coins in the portfolio should have the lowest correlation possible in our market.  By the level of capitalization, all coins can be divided into three groups: high (over $ 5 billion), medium (from $ 250 million to $ 5 billion) and low (less than $ 250 million).  Accordingly, a more conservative portfolio: 50-60% of coins with a high level of capitalization, a more risky portfolio - little capitalized coins.  I adhere to a more conservative investment option, so I recommend keeping the share of bitcoin in the portfolio at 50%.  Of course, the dominance of bitcoin still plays an important role, as it primarily speaks of its liquidity.  I would recommend monitoring this metric and balancing your portfolio accordingly.

  The next most interesting asset for us is ETH, which, as a percentage of its current value, shows a much higher growth dynamics than Bitcoin.  There are several reasons for growth at once:

  First, payment company Visa has announced that it will support payments in Ethereum through the USDC stablecoin.  This means not only good news for USDC, but for Ethereum in the first place, which pays all fees.
  Second, much of the activity in Decentralized Finance (DeFi) and NFT is done through Ethereum.  I would here call the growth of Ethereum even insufficient simply due to the fact that all the profits (huge billions of dollars in profits) that artists and artists receive immediately "merge", that is, they sell Ethereum and convert it either to fiat or stablecoins.
  Thirdly, this is, of course, the launch of the Ethereum 2.0 network - although today it is not particularly useful and requires further work, its prospects are absolutely stunning.  We add it by 20%.
  Next, we add assets from the top 10 and native tokens of the exchange on which you trade to the portfolio by 20%.  Here I would focus on several assets at once

  First, of course, it's ADA.  If the roadmap is successfully implemented, Cardano has an excellent chance of becoming a real competitor for Ethereum.  They will be able to offer functionality that is lacking in the DeFi protocol on Ethereum - interaction with other blocks, the functionality of the computer, and the presence of an ERC20 converter.

  Also on the side of Cardano is the fact that for developers working on the Ethereum platform, one of the main problems is the slowdown in the deployment of various aspects of ETH 2.0.

  Secondly, undoubtedly, Polkadot is another "killer" of the ether.  The goal of the project is to create a space where data from different blockchains can be processed and exchanged quickly and securely.  And crucially, no system-wide updates or hard forks.

  I would pay special attention to the native tokens of the exchange you trade on.  So, for example, the EXMO (EXM) exchange token has grown by 3000% since IEO, the Huobi (HT) exchange token profitability is estimated at 200%, the Binance (BNB) exchange at 9000%, and the OKEx (OKB) exchange at 300%.  So, in addition to the obvious benefits of token usability (lower fees, for example), you get good returns.

  And finally, the last 10% are the most risky investments.  Here the key rule is this - invest "extra" money, then how much you are not afraid to lose.  These assets include the famous DOGE, the value of which depends solely on the information noise and tweets of Elon Musk.  In addition, little-known assets in which market whales invest, as well as NFTs, can be included in the same block.

  If we are talking about risks, then here they are understandable and common for the entire market.  Considering our well-balanced portfolio, even in the event of a DeFi or NFT drawdown, there are more stable coins among our assets that will bring us profit in the long term.  In addition, I note that a slight decrease in value - a local correction - is not at all a reason for panic, but rather an opportunity to buy before the next bull run.

  The cryptocurrency market is characterized by the concept of seasonality.  During a pronounced depression and a decline in the market (crypto winter), keep a large share in stablecoins, increase the share of bitcoin during the growth phase, and increase the share of altcoins during a decrease in the share of bitcoin in the market.  Assets with a relatively low correlation, as well as regular portfolio rebalancing, will significantly reduce the risks of a fall in the total value of the portfolio.

  - "Don't expect a decline."  What will happen to the crypto market at the weekend

  - "The next goal is $ 5 thousand."  Why Ethereum Price Continues To Rise

  - "XRP will rise in price by another 400%."  What does Ripple's possible IPO mean?
Respectfully yours Markethive.

Любовь Султанова

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