Good Evening Everyone our topic for today is how do I diversify my crypto assets?
What is crypto assets diversification?
Diversifying your crypto portfolio is the act of investing your money in various crypto projects to reduce risk if one or more projects perform poorly. Implementing a diversification strategy also allows you to achieve the best possible returns even when some of the portfolio items perform poorly or to summarize crypto assets diversification means that you invest in different coins and tokens to hedge against their price changes.
When I saw the SLP’s value dropping I immediately exchanged my SLP to Matic in Binance and I waited for the Matic to go up when it got up to 2 Dollars each I swapped 75% of my Matic to USDT and I cashed out the USDT to PHP in P2P trading in Binance and put them all in my savings accounts so that it will increase little by little every month.
I choose to exchange my SLP to Matic in reason of, I am always looking every day if the Matic is rising up to 25% more so I decided to hold Matic rather than SLP that dropped a lot and continually dropped before the latest update but now because of the updates SLP is now going up now little by little.
Why should we diversify our crypto assets?
The crypto market is highly volatile. Diversification protects against unexpected negative market swings.
Due to price jumps.
It increases the chances of your cryptocurrency investment prospering.
You can’t rely on a single cryptocurrency, such as Bitcoin, to provide good returns.
It enables you to make the most of multiple coins that are performing well at the same time.
Diversification is a great risk management strategy that many investors use in both crypto and traditional assets. While it will not protect you from a market-wide correction or a bearish cycle, it will reduce your risk if one of your portfolio assets exits the crypto market or has a poor run. Keep in mind that investing is risky, but risks can be managed to some extent. You can significantly reduce the impact of global slashing events on your portfolio by making smarter investments.
And that’s it for today thank you for reading. Have a good day everyone
Today we will be talking on how I diversify my crypto assets!
I move my crypto assets everyday! I use them whenever I learn a new way to earn!
But today I will talk about how I mainly earn!
Number 1 is Staking. -Staking is a way to put your crypto to work and earn reward from it. Think of this like bank savings. You basically earn passive income from this but not too much. I like action so for me this is boring stuff. I only stake a crypto that moves slowly. Careful about price drops tho!
Number 2 is trading. -So here comes the action! Basically you will buy a cryptocurrency of your choice and sell e when the prices goes up! I mainly use the scraping method in trading so actions moves in minutes, or even seconds of trading! Crypto scraping gives low profit but can accumulate depending on how much time per day you can give!
WARNING If you plan on trying any form of trading you should remember: Never sell lower than your investment! Always mind the transaction fees! Do your own research first!
Number 3 is NFT trading. -This is my main money maker! Just like trading but you will be buying and selling NFT’s! I maily focus on In-Game items rather than those photos of monkey being sold at insanely high prices. Basically your goal here is to study the maket of the game you want to focus on, that way you will be able to monitor and find underpriced goods. I mainly focus on this because you can still earn even if the crypto market is dropping.
Here is an example: I’ll use the game Axie Infinity as an example. Let’s say you studied the market and you know that a bird axie with a certain skill set normally costs 0.7 eth. Then you suddenly saw someone selling that exact same axie at lets say 0.4 eth, while the rest of the prices stays the same. You should immediatly grab that! and sell it back on 0.7eth! Profit!
Warning! It might sound easy but monitoring price range changes is a bit hard and requires research! Always mind the Gas fees/Transaction fees! Never sell lower than your capital! Never be a “Trigger Happy” person who always buy without thinking!
Lastly please remember that in any kind of trading, Patience is a must!