How to build a crypto portfolio with only $1000Posted on: December 1, 2017, by : Dan Muresan
A lot of people were asking me about starting investing in crypto so I decided to show you how to build a crypto portfolio and see how it goes from there.
The $1000 is the minimum amount of investment that I recommend, because there are a lot of good trading options out there. There are also a lot of fees, so using anything smaller than that, would end up in paying high fees for transfers, exchanges etc. You can use more than that if you want, buy not less, because the reasons I mentioned.
So, here is how you build a crypto portfolio. After you got everything set up and the money got in your exchange account you are ready to buy. I recommend diversifying your portfolio otherwise the market will eat all your funds. You can diversify as follows (remember that you have to make your own research before buying anything, this is not a financial advice):
- $300 (30%) into large mk. cap coins, such as BTC, Litecoin (anything from the top 5 can work). These are already adopted by the majority of the investors and are reliable investments.
- $500 (50%) into medium mk. cap, such as IOTA or Monero). These are a great option for getting into top five, so they can increase your profits, since they also are very popular and have a large number of supporters
- $200 (20%) into small mk. caps (anything from the top 100, however, but keep in mind these have a high-risk potential and might grow or drop very fast).
Knowing when to buy and what to buy so you get maximum profits is the key here. There are some safe crypto trading rules that you have to follow so you can securely build a crypto portfolio:
- You already learned the first one: diversify. You should have at least three coins for each category, so a total of nine coins.
- Do not to buy high, at all time highs. You have to buy when prices are low so you make sure you get a good price.
- Do not to get emotional. It’s a tricky rule and people lose a lot of money because of it. There have to be a perfect synchronization between market, emotions and news in order to get the best profits on the long term.
This is just the tip of the iceberg, in the future I am going to show you exactly the following:
- When is the right time to buy?
- What coins?
- At what price to buy from the all-time high price?
- When you can sell and take a small profit?
- When can you buy back so you don’t get stuck into fiat money?
- What to buy with the profit?