Introduction

Getting started with cryptocurrency investments is as simple as buying your first bitcoin (BTC), ether (ETH) or any other cryptocurrency. Some investors prefer to buy and hold the most popular cryptocurrencies, some prefer to experiment with altcoins. So
how do you get the best results? You will have a better chance of success if you think carefully about your asset allocation strategy and engage in regular balancing of your crypto portfolio.

What is a crypto portfolio?

A crypto portfolio is a set of cryptocurrencies owned by an investor or trader. Portfolios typically contain many different assets, including altcoins and crypto- financial products. They are similar to traditional investment portfolios, except that you
own one asset class. You can track a crypto portfolio manually using a spreadsheet or through specialized tools and software to calculate assets and returns. A portfolio tracker is best for these purposes. Trackers are extremely useful for day traders and
other short-term traders, but are also valuable for long-term investors.

What is diversification and asset allocation?

When creating an investment portfolio, it’s important to become familiar with the concepts of asset allocation and diversification. Asset allocation means investing in different asset classes (e.g., cryptocurrencies, stocks, bonds, precious metals, cash, etc.).
Diversification is the allocation of investment funds to different assets or sectors. For example, you can diversify your stocks by investing in different sectors such as agriculture, technology, energy and health care. Both strategies help reduce overall
risk.

Cryptocurrencies are a single asset class. But in a cryptocurrency portfolio, you can diversify products, coins and tokens that are…