Good evening,
Your fellow Citizen here.
Something I have found a large number of noobs failing to address in their crypto-portfolios is risk management.
Im going to have a decent yarn that you will most likely pull something from. Enjoy!
*Be aware that any sound portfolio will have a diversification of assets designed to limit risk exposure.
Going all in will leave you broke and depressed. On the off chance you do happen to make money off the "gamble", the habit will eventually ruin you. That is a statistic. Don't treat this game like a deck of cards and only invest what you can afford to lose!
Start by googling and reading 'risk management'. Then if your a little more ambitious, check out a business called "tradeslide" (for forex legends). Its what we should all be aiming for to achieve in terms of risk. Perhaps some genius can replicate the analysis for crypto? That I would pay for.
Many people are losing huge amounts of money with MT4 because they don't manage risk. Its sad because most of them make sound orders but they cannot sustain the margin. Small fluctuations wipe them out and they find themselves crying in the troll box! Get educated! There is money to be made.
Spread your investment out according to risk profiling. You may not be an expert but research your coins. Get to know what makes them unique and how they will be of use in the future. Identify potential flaws and scope the community. A strong community is a positive sign. Take a look at the marketing/branding scheme, is it attractive? Does it fit the coins purpose? Glitz and glam is not everything but its certainly holding back a few coins. A strong development team is important. But make sure what they are working with is worth it.
Assess the coins true value. There is a big difference between PRICE and VALUE. Google it. Don't be fooled by a bot. Check the orders buy/sell and market transaction history. Be smart and look for any sussed activity. Remember this is the wild west folks.
Buying large quantities of low value currency can be a wise decision. Some are so cheap that you may be able to purchase millions with only $30. This is risky but that is why we would only devote a small share towards these. Its also cool to have a lazy few million lying about.
Many coins, unfortunately will perish in the years to come, were others may flourish. If you can capture a decent spread, you may be rewarded.
Work in percentages. Allocating smaller fractions to what is to be the riskiest asset. As I identify stronger purpose, I will invest more of the portfolio in that direction.
A good place to start shielding your assets is in crypto-stock. I have found as the coins suffer large losses, my stock remains relatively stable in comparison. I am also in a lucrative position regarding dividends. Every week, I will earn a small fraction of bitcoin as my chosen company makes bitcoin. It may not be a lot, but over time it will generate an income. If my stock performs well in the future (which i believe it will) and earns more BTC, so will I. As BTC appreciates, so will my stock and dividend.
But be warned. There are many stocks that unfortunately have no future. They will fade away to bankruptcy. If you were to own them, you will lose your money.
There are still other niche markets available for you to pour your hard earned crypto into, many underdeveloped and potentially undervalued. I suggest connecting through twitter and other forums/discussion panels to keep yourself up to date. If you can get in before everyone else, you may be at an advantage.
*Word up
Do not. Ever. Trade the troll box. Weak minds may easily be broken and many fools have been swindled. Don't let these monsters persuade you! Do your own research. A few weeks ago I got the heads up from an insider at the Whitehouse . "Obama will now be accepting bit coins". Loved it. Have some fun and a laugh but dont be stupid. Most coins are on the moon, scams, being pumped or dumped by chinese or either crashing on some bogus exchange.
You have a whole new financial world to explore. Understand the crypto game we play is extremely risky. More so than any financial instrument ever encounted. You could construct the perfect portfolio but it will always be flawed in the sense that it is completely comprised of crypto! If your a big player, get some gold.
Sincerley,
John.
