Portfolios or investment portfolios are known as a set of financial tools that an investor possesses and that are used to multiply their financial assets. Learn more about these tools and why cryptocurrencies are an excellent option to build investment portfolios.
An investment portfolio is a set of financial tools that an investor possesses. These can be the actions of a company, the possession of bonds, foreign currencies, cryptocurrencies or precious metals such as gold or diamonds. We can also add a portfolio, the possession of real estate titles or pieces of art of great value.
The purpose of portfolios is to allow investors to multiply and grow their savings and financial assets. These can be handled both by the investor and by companies that mostly have a specialized team dedicated to this.
Without a doubt, tools like crypto wallets allow you to create cryptocurrency portfolios in a comfortable, fast, safe and easy way. However, the question for many is how we can integrate cryptocurrencies into our investment portfolio.
There are many recommendations from experts and important influences from the cryptocurrency ecosystem, such as Aleh Tsyvinsky. Tsyvinsky, who is a professor of economics at Yale University, recommends investors include a percentage of cryptocurrencies in their investments. According to this specialist, defenders of cryptocurrencies must include at least 6% of them in their portfolios. The less enthusiastic should include 4% of the total investment. While the most skeptical are recommended to include 1% of this type of digital assets.
Likewise, those investors who decide to have all their capital in these digital assets should not focus on a single cryptocurrency. Rather, they should diversify the investment in balanced percentages of various cryptocurrencies and altcoins. With this, they will be able to carry out a market projection to really determine what to expect in the future. Be it short, medium or long term.
Once we are clear on all these aspects, we can begin to build our investment portfolio. In this case, an excellent option to open your portfolio is to use our cryptocurrency buying and selling services, our Bit2Me Wallet, or even, if you are an advanced user, Bit2Me DEX. With all these options, you will have everything you need at hand to get the most out of your cryptocurrency investments quickly, easily and safely.
Importance of portfolios
With the creation of these tools, what is sought is to achieve an optimal balance by reducing risk and maximizing returns. Thus, through portfolios we can organize ourselves and have a clearer idea of how to manage our money. Spreading investment risks, so that we get the most out of our funds.
In addition, it will help us to control our operations more efficiently. Likewise, the diversification of our portfolio allows us to define the objective we want to achieve. Perceiving much more stable returns and with less long-term risk.
Like any investment, they have no guarantees and there are certain risks, where we can lose a lot or all of the money invested. However, let’s take stock of the advantages and disadvantages that this very important investment tool offers us.
- An investment portfolio helps you protect your assets, at the same time that you put to produce your money.
- Creating an investment portfolio is the best way to grow your capital in the medium and long term.
- By staying organized, it will allow you to have your capital and its earnings at the time you need it, meeting your financial goals.
- Portfolio diversification will help you avoid undercapitalization in the event of a market crash for a given asset.
- When you invest your money in a portfolio, there is no guarantee of the benefits you will get. You can make big profits if you trade well in the markets. Or on the contrary, if you do it without the necessary knowledge, you may lose part or all of your money.
- Many investors want to see short-term gains. But the truth is that in an investment portfolio you must have a lot of patience and nerves of steel when bearish trends occur and not enter a state of uncertainty.