3 Easy Steps to Start a Cryptocurrency Portfolio

by Andrew McGuinness     Jul 16, 2019

Cryptocurrency has become substantially valuable in the past 10 years, gaining more investors each day that passes. But how exactly do we invest in cryptocurrency? Many might think that investing in any digital currency would be a good idea. This may as well be true. However, if you consider all of your options, think rationally, and invest wisely when creating a cryptocurrency portfolio, you will end up with a more profitable, valuable portfolio.

As interested as people are in cryptocurrencies and starting up a digital currency portfolio, many people are still unfamiliar with the tricks of the trade. In order to understand how cryptocurrency works and how you can develop your own portfolio over time, you should consider taking the following three steps.

1.Start with the major currencies

The major cryptocurrencies on the market at the moment are Bitcoin (BTC) and Ether (ETH). They are basically parents to all other smaller, lesser known coins. If you are considering starting a cryptocurrency portfolio, investing in these coins are definitely where you should start.

Any portfolio requires a solid and stable foundation upon which to build. If Bitcoin and Ether have proven to be anything in the last decade, it’s that they are valuable and capable of producing consistent profit or at the very least maintaining a stable status.

2. Have a good variety of coins

Along with investing in the major digital currencies on the market, it is wise to try your luck on a few others as well. Having anywhere from 3-8 different coins would be ideal. Here are a few types of cryptocurrency that would be worth looking into:

“Zombie” coins: These are coins that had some time in the spotlight in the past but have died out since then, and been forgotten by many. Litecoin, for example, has been gradually making its way toward becoming the second-class Bitcoin. Then again, plenty of coins have been aiming for that label.

The problem with many of these “Zombie” currencies is that there are very few unique features distinguishing them from the crowd of other lower-value coins. Unless a coin is capable of showing that it has some sort of unique value in comparison to other coins, or has an upper hand when it comes to exchange, you should not be investing in it.

Anonymous currencies: Over the years it has become apparent that anonymity, in the world of cryptocurrencies, is a very valuable thing. Privacy is one of the most precious features that have made digital currency as valuable as it is. And what currency is more private than an anonymous cryptocurrency? Monero and Zcash are the highest valued anonymous digital currencies at the moment, and if you are creating a portfolio, one of these should form a part of it.

3. Coins change

If you are unaware of how an investment in these coins work, here is a short overview. These coins will not always be as valuable as they are today. The value of these coins, much like virtually anything else in this world, will rise and fall depending on circumstances people usually have no control of whatsoever. For this reason, it is to be advised that you keep up to date with the status of your coins, read up on the most current advice and guidance from professionals, and consider all of the information available to you before taking these initial steps in creating your first cryptocurrency portfolio.

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