Facebook X (Twitter) Instagram Vimeo
    The Business Gossip
    Subscribe Login
    • Business
    • Technology
    • Digital Marketing
    • Education
    • How To
    • Travel
    • Health
    • Sports
    The Business Gossip
    Home»Trading»How To Manage Your Crypto Portfolio
    Trading

    How To Manage Your Crypto Portfolio

    By Janet ChuaNovember 29, 2022Updated:November 30, 2022No Comments5 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Crypto Portfolio
    Crypto Portfolio
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Given the recent market fluctuations, crypto traders are seeing, it is important to step back and talk about some of the basics that help crypto traders (and those who invest overall) continue to protect their crypto investments. The reality of trading any financial instrument is that new traders should be focused on understanding the risks involved and keeping their emotions in check. In this blog, we’ll tackle one of the most challenging subjects given the market’s recent volatility: how to manage your crypto portfolio while maintaining the lowest possible crypto tax rate.

    Contents hide
    1 What is a Cryptocurrency Portfolio?
    2 1. Balance Your Crypto Holdings
    3 2. Remain Rational with Your Investing
    4 3. Avoid The Hype
    5 4. Develop a Strategic Trading Plan
    6 5. Practice Risk Management
    7 Build Your Crypto Portfolio Today

    What is a Cryptocurrency Portfolio?

    If you’ve never traded before, you may be unaware of some of the terminology used by seasoned crypto traders. One such phrase is the use of cryptocurrency portfolios. Cryptocurrency portfolios are a system set up to help you monitor and manage all of your cryptocurrency assets in one convenient location.   

    1. Balance Your Crypto Holdings

    Your crypto holdings are what give you the chance to invest and gain financial independence and freedom. It’s important to ensure your crypto holdings are balanced and not too heavily invested in one crypto token or another. Due to the volatile nature of the cryptocurrency market, tokens and NFT projects should be invested with care. You should always strive to balance your portfolio by not investing or going “all in” on Ethereum (ETH), Safemoon (SAFE), . Novice traders should, instead, attempt to balance holdings to mitigate risk. One strategy is to invest (at most) 10% of your holdings in one or more cryptocurrency tokens or projects and continuously reevaluate the trend of the market overall and your exposure to volatile areas of the crypto market. 

    2. Remain Rational with Your Investing

    Trading cryptocurrencies brings with it anxiety and, often, new traders in the crypto space are irrational in their decisions. It is important to be rational and logical when making decisions about which crypto token or project you’ll support and what will be the most financially rewarding. Always trade with a plan and have a reason for why you make your trading decisions. 

    Always remember these tips when trading: 

    • Follow sound principles of trading 
    • Seek to truly understand a cryptocurrency’s movements on a chart
    • Treat trading as a learning experience and go slow with deliberate trades 
    • Always have a recap after a session. 
    • Think about the lesson in every trade.   

    3. Avoid The Hype

    Many traders buy crypto tokens when they hear a friend tell them “this token is going ‘to the moon.” Hyped-up tokens and NFT projects may well reach miraculous one-time highs but at those high price points, crypto traders will often continue to invest even when signs point to a pullback or a retracement. Remain calm and think through your trades. Avoid the hype of news boards or your favorite Discord channel and, instead, take the time to understand what the charts are telling you. Don’t go with emotions but use a balanced approach to trading by using part logic and part emotion. Find the ‘why’ during every trading session and use straightforward, proven logic and news reports to make your trades. In this manner, you’ll balance your crypto portfolio in the proper way which helps you mitigate risk. 

    4. Develop a Strategic Trading Plan

    Before you even enter a trade, you should understand the why behind your trade, what your expected profit is, and at what price point you’ll sell your tokens at. It’s important to take out a sheet of paper and write down this information as it will then become cemented into your mind and give you a clear roadmap forward in your trading journey. 

    A trading plan should consist of at least: 

    • Mood Assessment (How are you feeling? Are you ready to trade?)
    • Set Risk Levels (What is your appetite for risk? Is your trade within your risk tolerance?)
    • Set Goals (what is your expected profit potential)
    • Entry and Exit Points (when exactly will you enter, exit, and why are these levels important entry or exit points?)
    • Protect Your Assets (Ensure you have a stop-loss or exit point in case a trade doesn’t work out in your favor)

    5. Practice Risk Management

    Sound risk management involves understanding what you are willing to lose and protecting the previous trading capital and assets you’ve acquired over time. Risk managers have different risk levels at which they suggest traders invest with depending on their current trading capital, risk appetite, and how familiar they are with trading. As a beginning crypto investor, you should look to only invest less than 5% of your holdings in one crypto token or project. It is up ot you though how aggressive you’d like to get with your trading capital but to practice sound risk management, you should initially learn the basics of crypto trading before you invest too heavily into a token going “to the moon.”

    Build Your Crypto Portfolio Today

    Begin to build your crypto portfolio today with FTX. Join millions of traders worldwide who practice sound risk management, learn to leverage fundamental and technical analysis, and grow their crypto portfolios. 

    Crypto Portfolio
    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleHow to Improve Your Customer Experience and Boost Sales in 2023
    Next Article Why You Should Hire a CMO to do Your Digital Marketing
    Janet Chua

    Content manager at The Business Gossip

    Leave A Reply Cancel Reply

    Latest Posts

    Live Cricket Streaming: Enjoying the Game Anytime, Anywhere

    September 1, 2023

    Honda Tech Tutor Mastering Your Vehicle’s Technology Made Easy

    August 28, 2023

    Security Bank of Kansas City Keeping Your Finances Safe in the Heartland

    August 28, 2023

    Pain Management Near Me Finding Relief for Discomfort

    August 26, 2023
    The Business Gossip
    • Business
    • Privacy Policy
    • Terms of Use
    • Disclaimer
    • About Us
    • Contact Us
    Editor Picks

    When choosing a senior living community, visiting them in person is essential. Visiting is critical, as it helps you better understand the lifestyle, amenities, and overall environment.

    August 19, 2023

    MP3 Juice Red Your Comprehensive Guide to Free Music Downloads

    August 15, 2023

    Blue Thunder 4s An Iconic Fusion of Style and Substance

    August 12, 2023

    Unveiling the Best Nike Boxing Shoes for Your Ultimate Performance

    August 10, 2023
    Must Read

    Unlocking Success Your Guide to Excelling in a Data Analytics Internship

    August 9, 2023

    Identifying Automation Opportunities in Middle Funnel Marketing

    August 9, 2023

    Sip Bottle Your Ultimate Hydration Companion

    August 7, 2023

    Epic Road Trips: Embrace the Adventure of a Lifetime

    August 6, 2023
    © 2023 The Business Gossip. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT

    Sign In or Register

    Welcome Back!

    Login below or Register Now.

    Lost password?

    Register Now!

    Already registered? Login.

    A password will be e-mailed to you.