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How To Get A Crypto Portfolio? A Beginner’s Manual

Nov 29, 2022
5 min read

This blog post will cover:

  • How to choose coins for a crypto portfolio
  • Keep an eye on the market
  • General tips for beginners

How to choose coins for a crypto portfolio

What coins are advised to buy for a beginner crypto enthusiast? What to do — choose old and proven scenarios or market newcomers hoping that they will skyrocket?

It is better for a beginning crypto enthusiast to focus on long-term investment options. Long-distance investment tends to always show growth. In the long-term investment format, analysts usually recommend pay attention to the coins from the top10 list by market capitalization.

  1. BTC capitalization: $385,583,827,518
  2. ETH capitalization: $193,127,384,563
  3. BNB capitalization: $45,906,257,783

The coins of these projects will generate revenue in the long term. Crypto assets from the top10 do have a solid foundation, proven history and high popularity.

In addition to the portfolio of the top10 crypto coin list, one can consider adding coins of projects with medium capitalization. For example those who take places from 10 to 30 in the coin list. These crypto assets will increase the potential of your portfolio, due to a chance of short- and medium-term growth.

  1. AVAX capitalization: $5,701,315,612
  2. UNI capitalization: $4,739,151,281
  3. ETC capitalization: $4,468,886,025

The split of coins in the portfolio between the two types of assets looks like this: ⅔ of coins are from the top10 capitalization list, and the remaining ⅓ are the coins of projects with medium capitalization.

Keep an eye on the market

Everyone says "keep an eye on the market". But what does it mean? What exactly do you need to pay attention to? 

The market is never chaotic and the price movements always follow the trend. Before you start adding crypto assets to your portfolio, you should do a research of market trends, learn to identify them and make a decision about buying or selling crypto based on the current trend. The main task of the investor is to buy lower and sell higher. And right here the trend is helping us out to buy crypto at a better price. 

There are 3 types of trending movements:

  1. Uptrend — coin prices rise and update the maximum values.
  2. Downtrend — coin prices go down and update the minimum values.
  3. Flat market — the market lacks a pronounced upward or downward direction.

The end of the downtrend and the transition to the uptrend is the perfect time for buying crypto. Accordingly, when moving from the uptrend to the downtrend, it is the best time to fix the profit.

General tips for beginners

Here are some points for a newbie, beginning to comprehend the Crypto World:

  1. Get to know and understand the technology. 
  2. Study trend movements and reversal formations. You can refer to Dow theory and the Elliott Wave theory. 
  3. Do not invest the entire amount in one crypto asset.
  4. Always independently select coins for the portfolio after doing your own research.
  5. Make decisions on buying or selling with a cold mind and emotionless. Do not try to catch the last train.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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