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Broad-Ranging Crypto Portfolio

Nov 22, 2023
Broad-Ranging Crypto Portfolio

Key Insights

  • A diversified crypto portfolio should consist of a mix of established coins like Bitcoin and Ethereum, as well as emerging tokens, to balance stability and growth potential.
  • When constructing a cryptocurrency portfolio, it is important to allocate percentages based on factors like market capitalization, utility, and technology behind each crypto portfolio token.
  • The crypto portfolio allocation across different digital assets such as Bitcoin, Ethereum and other tokens allows for flexibility to adapt to changing market conditions in the cryptocurrency space.

Welcome to the exciting world of crypto magic, where each digital coin is a unique hero in an epic of financial opportunity. This portfolio is not just an assortment of crypto assets, it is a magical collection where each coin reveals its own personality in the world of investing.

But but first, what is a crypto portfolio? It refers to a strategic mix of digital assets used as investments. Also, for balanced investing, you need to understand what a crypto portfolio strategy is, which allows you to balance risk and reward across a variety of blockchain projects. All of these key points are necessary to make educated and clear financial decisions.

How to Diversify Crypto Portfolio

diversified-crypto-portfolio-piechart

Bitcoin

Bitcoin (BTC) — 15%

The great hero of the token portfolio, Bitcoin stands as an unshakable foundation, giving stability and reliability to your investment journey.

As the pioneering decentralized digital currency, BTC provides a robust store of value and liquidity benchmark. Its longevity and proven security instill institutional confidence, and the trading volume of BTC USDT indicates high interest from individual users. Beginners can also consider diversifying their Bitcoin portfolio to reduce risk.

Ethereum Coin

Ethereum (ETH) — 15%

Ethereum, the wizard of innovation, opens doors for you to the world of smart contracts and decentralized applications, creating a unique and multifaceted experience. The value of the Ethereum coin has grown substantially as the platform has scaled.

The versatility of the Ethereum facilitates widespread innovation across industries through the ability to create customizable smart contracts. Investors watched the ETH price closely as usage of the network grew rapidly. Many are also interested in Ethereum classic, the original blockchain from which hard forked in 2016.

ATOM Coin

Cosmos (ATOM) — 10%

The Atom coin, the architect of connections, weaves amazing bridges between blockchains, giving your portfolio mystique and elegance.

As an "internet of blockchains", the Cosmos blockchain facilitates interoperability between diverse network systems. Its Inter-blockchain Communication (IBC) protocol allows cross-chain transactions and and interconnection of sovereign chains. The Cosmos token serves as a utility within this expansive ecosystem, powering transactions and interactions across the network.

LINK Coin

Chainlink (LINK) — 10%

Chainlink, the data prophet, brings predictive magic and reliable sources of information to your portfolio like a firefly in a dark forest. The Chain link price fluctuations often reflect broader market trends, making it an interesting asset for investors.

Chainlink introduces hybrid smart contracts by securely connecting blockchains to external data through a decentralized oracle network. The LINK crypto has gained attention for its role in facilitating these secure connections between blockchains and data sources, fostering innovation in dApps.

Sandbox Coin

Sandbox (SAND) — 5%

Sandbox adds virtual reality splendor, allowing you to immerse yourself in unique worlds of fantasy and possibility.

The Sandbox coin (SAND) is an ERC-20 utility token that facilitates transactions in the metaverse. The SAND crypto is used to purchase LAND parcels and in-game items in the virtual economy. Sandbox pricing for these virtual assets varies based on demand and scarcity, contributing to the dynamic nature of this immersive world.

UNI Coin

Uniswap (UNI) — 5%

Uniswap, the fairy of easy exchanges, brings ease and freedom to the world of finance, like a magic wand that opens new vistas.

Uniswap exchange operates as a decentralized platform that utilizes automated liquidity pools instead of order books for facilitating direct token swapping.

UNI token is integral to Uniswap's ecosystem, enabling trustless swapping and bootstrapping liquidity for long-tail ERC-20 tokens. Also with the UNI coin, users participate in governance and receive rewards within the network.

SOL Coin

Solana (SOL) — 5%

The Solana network, the solar oracle, brings light and clarity to your portfolio, ensuring high performance in your financial journey. The scalability of the blockchain is powered by its native SOL crypto.

Leveraging innovations in proof-of-history and sharding, Solana achieves high scalability without sacrificing composability or security. With the SOL coin, users can take advantage of the lightning fast and low cost transactions enabled by Solana's ground-breaking tech.

AVAX Coin

Avalanche (AVAX) — 5%

The Avalanche, the keeper of the icy peaks, provides your portfolio with stability and unique opportunities through its innovative network. Integrating the AVAX coin into your investment strategy can capitalize on the platform's innovative capabilities.

The Avalanche protocol employs novel consensus mechanisms like its snowman model to offer high throughput for building dApps while allowing for custom subnet creation catered to diverse use cases. This innovative approach supports AVAX price stability and fosters an environment for Avalanche blockchain growth, ensuring high-speed networks that maintain security and decentralization.

MATIC Coin

Polygon (MATIC) — 5%

Polygon, the multi-faceted view, gives your investment landscape diversity and the opportunity for insight. In general, the MATIC price has shown growth since September 2023, but the asset is still subject to market fluctuations and does not always show stability.

The Polygon network boosts Ethereum's throughput and reduces transaction fees via an adaptor mechanism for off-chain scaling solutions. It utilizes sidechains, asset transfers, and contract calls to enable faster and lower cost transactions. The MATIC coin serves as a pivotal asset within this ecosystem, contributing to its functionality and utility.

XRP Coin

Ripple (XRP) — 5%

Ripple, the world dancer, allows your portfolio to move harmoniously in global financial flows like a professional performer on the world stage.

The Ripple company offers real-time gross settlement, currency exchange and remittance through its permissioned but public network, aiming to complement legacy systems. Its XRP coin acts as an efficient bridge currency for cross-border payments and settlements between different fiat currencies and cryptocurrencies.

LTC Coin

Litecoin (LTC) — 3%

Litecoin, the lantern in the dark, brings light and simplicity to your portfolio, becoming your trusted guide in the world of cryptocurrencies. If you're considering diversifying your crypto holdings, having a LTC coin could be a useful addition.

As an early Bitcoin fork, Litecoin improves transaction speeds and fees through shorter block generation times, increased maximum token supply, and adoption of the Scrypt proof-of-work algorithm. This provides faster, higher volume payments and transactions.

When transferring LTC, be sure to use your Litecoin wallet address to ensure funds go to the correct place.

AAVE Coin

Aave (AAVE) — 3%

Aave, flying lender, provides unique opportunities and decentralized borrowing as an invisible winged companion to your investment flight.

The Aave protocol enables decentralized lending and borrowing markets using pooled collateral assets and tokenized credit. Its smart contracts connect lenders and borrowers in a transparent way without intermediaries. The Aave crypto allows trustless lending and borrowing of digital assets with flash loans and uninsured cashflow stablecoins.

Vechain Coin

VeChain (VET) — 3%

VeChain, blockchain in supply, brings supply chain transparency and traceability to the portfolio, making your investment journey more predictable.

The VeChain price has seen significant volatility over the years, but the project aims to bring stability to global supply chains. Applying Internet of Things (IoT) and Radio-Frequency Identification (RFID) technology, VeChain tracks goods across their lifecycle and adds verifiable supply chain records to the blockchain ledger. This enhances brand trust by preventing counterfeiting and ensuring quality while providing visibility across international supply chains.

Additionally, VET tokens play a crucial role in facilitating these transactions within the VeChain ecosystem.

THETA Coin

Theta Network (THETA) — 2%

The Theta Network, the magic of media, opens you up to investing in innovation in streaming and entertainment, adding an element of enchantment to your portfolio. The network leverages Theta tokens as fuel for its decentralized video infrastructure.

Theta developed a network powered by users to improve video delivery and reduce Content Delivery Network (CDN) costs. It incentivizes peer-to-peer video relay using blockchain micropayments to enable decentralized live streaming and video on demand platforms. Investors can participate in the growth of this innovative streaming technology by holding the Theta coin.

Tezos Coin

Tezos (XTZ) — 2%

Tezos, the architect of change, provides a unique approach to protocol updates and change management, making your portfolio resistant to change.

With on-chain governance, Tezos efficiently coordinates stakeholders to propose, select, test and activate protocol upgrades over time. Its self-amending architecture allows it to evolve without destabilizing hard forks.

Additionally, the utility token XTR coin enables access to unique features on the Tezos blockchain. By holding this token, users can help secure and govern the network. Positive network effects could help support the higher Tezos price long-term.

Pros of the broad-ranging crypto portfolio

  • Diversification

A wide range of cryptocurrencies provides effective diversification, reducing risk and increasing the stability of your portfolio.

  • Innovation

By investing in coins that represent innovations in blockchain technology, you can be at the forefront of cryptocurrency progress.

  • Flexibility

A mix of large and promising cryptocurrencies gives your portfolio the flexibility to adapt to changing market conditions.

  • Balance of Risk and Return

Asset allocation creates a balance between high return potential and moderate risk, providing sustainable investment planning.

When considering the creation of a diversified crypto portfolio consisting of different digital assets, it is important to consider several factors: determining a strategy and choosing coins based on the economic factors listed above.

With this diverse crypto portfolio, you're ready to embark on an exciting journey through the world of cryptocurrency investing!

The information in this article is not a piece of financial advice or any other advice of any kind. The reader should be aware of the risks involved in trading cryptocurrencies and make their own informed decisions. SimpleSwap is not responsible for any losses incurred due to such risks. For details, please see our Terms of Service.

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2. See how much of each coin you’ll need to build this portfolio

currencyUSD

coin logo

≈ $

%

coin logoBTCBitcoin

Value

BTC

Amount

≈ $

Percent

15%
coin logoETHEthereum

Value

ETH

Amount

≈ $

Percent

15%
coin logoATOMCosmos

Value

ATOM

Amount

≈ $

Percent

10%
coin logoLINKChainlink

Value

LINK

Amount

≈ $

Percent

10%
coin logoSANDSandbox

Value

SAND

Amount

≈ $

Percent

5%
coin logoUNIUniswap

Value

UNI

Amount

≈ $

Percent

5%
coin logoSOLSolana

Value

SOL

Amount

≈ $

Percent

5%
coin logoAVAXAvalanche

Value

AVAX

Amount

≈ $

Percent

5%
coin logoMATICPolygon

Value

MATIC

Amount

≈ $

Percent

5%
coin logoXRPRipple

Value

XRP

Amount

≈ $

Percent

5%
coin logoLTCLitecoin

Value

LTC

Amount

≈ $

Percent

3%
coin logoAAVEAave

Value

AAVE

Amount

≈ $

Percent

3%
coin logoVETVechain

Value

VET

Amount

≈ $

Percent

3%
coin logoTHETATheta network

Value

THETA

Amount

≈ $

Percent

2%
coin logoXTZTezos

Value

XTZ

Amount

≈ $

Percent

2%
CryptocurrencyValueAmountPercent
coin logoBTCBitcoin
BTC
≈ $
copy fiat value to clipboard
15%
coin logoETHEthereum
ETH
≈ $
copy fiat value to clipboard
15%
coin logoATOMCosmos
ATOM
≈ $
copy fiat value to clipboard
10%
coin logoLINKChainlink
LINK
≈ $
copy fiat value to clipboard
10%
coin logoSANDSandbox
SAND
≈ $
copy fiat value to clipboard
5%
coin logoUNIUniswap
UNI
≈ $
copy fiat value to clipboard
5%
coin logoSOLSolana
SOL
≈ $
copy fiat value to clipboard
5%
coin logoAVAXAvalanche
AVAX
≈ $
copy fiat value to clipboard
5%
coin logoMATICPolygon
MATIC
≈ $
copy fiat value to clipboard
5%
coin logoXRPRipple
XRP
≈ $
copy fiat value to clipboard
5%
coin logoLTCLitecoin
LTC
≈ $
copy fiat value to clipboard
3%
coin logoAAVEAave
AAVE
≈ $
copy fiat value to clipboard
3%
coin logoVETVechain
VET
≈ $
copy fiat value to clipboard
3%
coin logoTHETATheta network
THETA
≈ $
copy fiat value to clipboard
2%
coin logoXTZTezos
XTZ
≈ $
copy fiat value to clipboard
2%
coin logoBTCBitcoin
BTC≈ $
copy fiat value to clipboard
15%
coin logoBTCBitcoin

Value

BTC

Amount

≈ $

Percent

15%
coin logoETHEthereum
ETH≈ $
copy fiat value to clipboard
15%
coin logoETHEthereum

Value

ETH

Amount

≈ $

Percent

15%
coin logoATOMCosmos
ATOM≈ $
copy fiat value to clipboard
10%
coin logoATOMCosmos

Value

ATOM

Amount

≈ $

Percent

10%
coin logoLINKChainlink
LINK≈ $
copy fiat value to clipboard
10%
coin logoLINKChainlink

Value

LINK

Amount

≈ $

Percent

10%
coin logoSANDSandbox
SAND≈ $
copy fiat value to clipboard
5%
coin logoSANDSandbox

Value

SAND

Amount

≈ $

Percent

5%
coin logoUNIUniswap
UNI≈ $
copy fiat value to clipboard
5%
coin logoUNIUniswap

Value

UNI

Amount

≈ $

Percent

5%
coin logoSOLSolana
SOL≈ $
copy fiat value to clipboard
5%
coin logoSOLSolana

Value

SOL

Amount

≈ $

Percent

5%
coin logoAVAXAvalanche
AVAX≈ $
copy fiat value to clipboard
5%
coin logoAVAXAvalanche

Value

AVAX

Amount

≈ $

Percent

5%
coin logoMATICPolygon
MATIC≈ $
copy fiat value to clipboard
5%
coin logoMATICPolygon

Value

MATIC

Amount

≈ $

Percent

5%
coin logoXRPRipple
XRP≈ $
copy fiat value to clipboard
5%
coin logoXRPRipple

Value

XRP

Amount

≈ $

Percent

5%
coin logoLTCLitecoin
LTC≈ $
copy fiat value to clipboard
3%
coin logoLTCLitecoin

Value

LTC

Amount

≈ $

Percent

3%
coin logoAAVEAave
AAVE≈ $
copy fiat value to clipboard
3%
coin logoAAVEAave

Value

AAVE

Amount

≈ $

Percent

3%
coin logoVETVechain
VET≈ $
copy fiat value to clipboard
3%
coin logoVETVechain

Value

VET

Amount

≈ $

Percent

3%
coin logoTHETATheta network
THETA≈ $
copy fiat value to clipboard
2%
coin logoTHETATheta network

Value

THETA

Amount

≈ $

Percent

2%
coin logoXTZTezos
XTZ≈ $
copy fiat value to clipboard
2%
coin logoXTZTezos

Value

XTZ

Amount

≈ $

Percent

2%

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