Adapt your crypto portfolio for market volatility
It's a cliche to say after so much time and history repeating itself over and over that crypto markets are volatile. Volatility and reverse movements are constants that repeat themselves in cycles when it comes to crypto. With that in mind, crypto investors can be forgiven for feeling the uncertainty about how the crypto assets from their portfolios will evolve upwards or downwards in the future.
What can we do as crypto investors to shield the portfolio against volatility periods? First of all, is a moderate diversification with similar amounts spread on multiple cryptocurrencies, but up to 10 assets. Why just 10? Because these would be still manageable if put in different earning mechanisms and at least 2 of them should be stablecoins. Keeping this ratio we'll ensure 20% of the portfolio is in stables which will help us navigate bear markets and also create "Buy the DIP" opportunities when the right time comes.
Resilience is another thing that we need to prove while our crypto assets perform one way or the other. Regardless of the backdrop, reacting to every tweet or headline is never going to be a good strategy. Buying on hype usually means a fallacy at a later point, while selling when the bears are poking all over the market will get the weak hands losing. We need to get over the market noise and believe in the tokenomics of chosen cryptocurrencies and why we invested in them in the first place. If it was put reason behind the decision and that still applies, just HODL!
Stablecoins should be part of the portfolio and put at work all the time. We have great examples of UST on Terra and even HBD on Hive which is providing 20% APRs and even more. These will ensure the stability of our portfolio over time and should not be ignored at any point. I think this is what most of the investors are overlooking which is disarming them in troubled times.
These I think are some simple things to consider when refining our crypto portfolio and let us navigate easier volatile markets. I hope to check them all soon, but I still need to balance some assets to achieve those. I wonder what other refinements you consider useful on a crypto portfolio...?
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Golden tips mate! My best tip would be to have BTC or ETH or both as a part of your portfolio. They have strong fundamentals & amazing communities. Also they have been through the test of time. Not sure about other cryptos but these two are definitely going in one direction in long term - UP.
NFA :')
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You are perfectly right with this. Unfortunately, I didn't catch the Bitcoin train as I bet more on Ethereum. Having both is a honeypot.
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Not a problem mate. For me ETH >> BTC even if the markets say otherwise. A flippening could happen anytime.
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BTC and ETH are no brainer, have them in your portfolio and I think you are smart. Had to sell my BTC last year for needs and haven't gone back in...
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Hive is a great choice too. But most people won't get it why 😂 except us Hivers.
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My tip is go all in on LEO, comment until your fingers hurt, then comment some more.
By the time the fingers feel better, you will be rich.
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I think stablecoin is being underestimated in this case, thank goodness HBD will help us in cultivating the habit of stablecoin diversification and me in particular I have no stablecoin besides HBD.
I'd like to think the system around Hive ecosystem naturally helps to adapt to market volatility or bear market, we keep earning during the bear or bull season.
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Without a doubt it is bringing about a transformation and a new understanding of what is taking place. This is going to create a host of opportunities. People need to be mindful of this.
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Like behiver mentioned in the post why is one involved in a project plays a deciding role for being able to resist the sell act during dips.
Give the projects a long term view and one will be able to work around market volatility to one's benefit.
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StableCoin is something I always make sure is present in my wallet, I don’t lose the opportunity of buying the dip with my saved StableCoin anytime the dip comes
Buying the dip on Stablecoins?
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No, saving satablecoins to use to buy the dip when the dip comes
Stablescoins like HBD are very powerful here.
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Pretty good suggestions for recent market conditions.
Adding Bitcoin and Ethereum may also help reduce portfolio volatility.
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Never thought about having two stable coins but makes sense, I am putting more in HBD but not sure what other to use🤔.
I have been thinking myself having to much in 1 or 2 coins is not the best idea. So have been thinking about ETH and the FORK I think will happen at POS time.
It is a great thing and I know that a lot of people think that they need to be 100% invested in the market but cash is always a position. Just by having the cash on the sidelines, you can always join opportunities when they come and you won't have to be in a rush to sell a different position either.
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It's important to have extra money for adaptability. Having stable coins or Hive or HBD is ideal. So when prices are low, able to take advantage of the buying opportunities !
Diversification can help to reduce the risk. You will not be in a vulnerable position if you invest in high conviction cryptos.
I think rearranging your portfolio also helps to deal with market volatility. Now we have lucrative options to earn from Stablecoins. So you can use a certain portion of stablecoins to earn interest.
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