How much of your investments should go to Bitcoin? It it OK to have no stablecoins at all? What altcoins to prefer? Let’s see how to build an ideal crypto portfolio right now.
Nothing is perfect in this world. Except for Keira Knightley, of course, but that’s a different story.
So every once in a while anyone who is investing in crypto asks this question. What does ideal crypto portfolio look like?
Ten years ago the answer would be quite simple. All you had to do is buy as much BTC as you can.
A few years later ETH came along and stablecoins started emerging, changing the landscape of digital assets forever.
It’s 2022 now. We’ve got hundreds of different coins, some of them are just flashing here and there for a few days, while some stay for a while. And some have already gained enough momentum to become a threat to the almighty US dollar.
It’s a war time also, with Russian invasion to Ukraine shaking the whole world and making us all worried about the possible WW3.
So how to build an ideal crypto portfolio in 2022?
Ideal crypto portfolio – a conservative way
You know what they say, more haste, more waste.
If you are one of those investors who agree to gain less, but to sleep at night with no worries, there is a very simple, yet effective recipe.
Stick to the coins that have been around for a while. Despite their volatility, they tend to show a remarkable ability to recover after any kinds of shattering.
Bitcoin and Ethereum are the way to go. These two major coins always bounce back after falling and continue to grow.
When in doubt zoom out. That’s the thing to remember when choosing a coin to invest.
Then come the stablecoins. There are many of them our there with USDT (Tether) being the most widely acjnowledged. What is a stablecoin? It’s a crypto coin that’s linked to an existing fiat currency. So one USDT is always equal to one US dollar.
More haste, more waste. So stablecoins are there to help.
No matter how many USDT you buy, you will always be able to sell them for the same amount of dollars. It’s the way to invest dollars in digital form while waiting for the US government to develop the infamous digital dollar.
So the bottom line here for the lazy investors: invest in BTC, ETH and USDT. As BTC is always growing the most, it might be wise to keep its share bigger than ETH.
It should look something like this:
- 50% USDT or other stablecoins
- 30% BTC
- 20% ETH
- 50% BTC
- 30% ETH
- 20% USDT
That’s also conservative, though a little bit more risky.
A modern way
Another approach, though still quite conservative, might be more suitable for those who are willing to tap risky waters, but keep the pants on if the markets goes down.
While keeping substantial share of your investments in stablecoins, you can cut the share of BTC and ETH. And add some jazz.
It might look like this:
- 40% USDT or other stablecoins
- 30% BTC
- 10% ETH
- 20% Misc altcoins
Or even like this:
- 40% USDT or other stablecoins
- 30% Misc altcoins
- 10% BTC
- 10% ETH
What altcoins to buy? Well, that’s a good question. ETH itself is an altcoin. Generally, any token that’s not BTC, is called altcoin. But ETH has become such a huge and popular digital asset, that it stands aside from other BTC rivals that have emerged lately.
So when talking about altcoins, you can choose something like Cardano, Solana or Raven coin. Though the list might be a lot longer.
A crazy way
Well, if you are about to risk or if you have some money to spare there is an approach that might fit your need even better.
Betting on coins Elon Musk tweets about, or those that are mostly discussed on YouTube that’s the way to go.
It’s the most obvious way to loose a lot of money. Most of those outspoken altcoins are heroes just for one day. You can never tell their future, because there is no body of evidence or sustainable factors of their growth or fall.
So it’s more of a gambling than anything else.
But. There is one ‘but’ that might overshadow all the risks. Especially for those of us who have some money to spare without regret.
The altcoins are the only way to multiply your investments in dozens or even hundreds of times.
BTC or ETH will never allow you to do this these days.
Let’s say BTC is around $42 000 now. Even if it makes it to $69 000 (back to November levels), your income wil not reach x2.
But some altcoin you might hear about on some YouTube channel one day, can easily make 2400% in just a couple of days.
Same story with the Metaverse coins, like MANA, they make x10 during one year or so. (We will have a separate story on cryptolife.report about altcoins that made huge success in a couple of days).
Once again, this approach is more of a gambling, and one needs to know for sure he has more chances to loose than to win. It’s a risky way to build an ideal crypto portfolio. But if you win, you win a lot. Just don’t play for the money you need for your family and children. That would be stupid, right?
Disclaimer: Please don’t use this story as a financial advice. All the choices you make for your investments are solely yours, cryptolife.report can’t take responsibility for your losses. Neither will we take credit for that Porsche you might buy if our advices finally help you gain a significant profit.