Bitcoin

How to Build a Balanced Crypto Portfolio

Published

10 months ago

October 25, 2022

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Summary

Balancing a crypto portfolio is not much different from balancing a traditional portfolio. You can easily reduce your overall risk with your profile and investment strategy. All it takes to start doing this is to diversify your investments with different cryptocurrencies.

How much diversification you make is up to you, as both approaches have their pros and cons. But the idea that some diversification is beneficial is generally accepted. You can reduce the risk of your investments by holding different crypto assets (including stablecoins) and rebalancing your asset allocation periodically.

You can use a third-party portfolio tracker or manually record your transactions on a spreadsheet to more easily manage your portfolio. Some tracking tools can connect to your personal wallets and cryptocurrency exchanges, making the process even easier for you.

How to create a successful crypto portfolio?

Getting started with crypto trading is as easy as buying your first bitcoin (BTC), ether (ETH) or any other cryptocurrency. Some investors prefer to buy and hold the biggest coins, while others prefer to try altcoins. So what’s the best way to do this? You are more likely to be successful if you carefully consider how you will distribute your assets and rebalance your crypto portfolio periodically. There are several ways to do this, depending on your risk tolerance. Balancing your portfolio is not difficult, and the results can be literally profitable.

What is a crypto portfolio?

A crypto portfolio is cryptocurrencies held by a trader or investor. Portfolios often include a variety of assets such as altcoins and crypto financial products. Apart from being tied to an asset class, it is quite similar to traditional investment portfolios. You can keep track of your crypto portfolio manually with a spreadsheet or use specialized tools and software to calculate your savings and profits. A good portfolio tracking tool can come in handy. Tracking tools are essential for day traders and short-term traders, as well as useful for long-term traders and HODLers.

What is asset distribution and diversification?

When building an investment portfolio, you should be familiar with the concepts of asset allocation and diversification. Asset allocation means investing in different asset classes (e.g. cryptocurrencies, stocks, bonds, precious metals, etc.). Diversification is about allocating your mutual funds to different assets or sectors. For example, you can diversify your stock savings by investing in different sectors such as agriculture, technology, energy and health. Both asset allocation and diversification reduce your overall risk.

Technically, cryptocurrencies are a single asset class. But in a cryptocurrency portfolio, you can diversify with products, coins and tokens with different purposes and uses. For example, you can dedicate 40% of your portfolio to bitcoin, 30% to stablecoins, 15% to NFTs and 15% to altcoins. For more information on this topic, you can read our Asset Distribution and Diversification article.

The difference between focused and diversified crypto portfolios

Most advice is for your crypto portfolio to be diversified. While doing this is standard for investors, there are pros and cons to allocating capital to different assets. As we mentioned earlier, a diversified portfolio reduces overall risk and volatility. You can balance your losses with gains and ensure that your positions remain stable. Your portfolio also has more opportunities to earn with every coin you hold. Not every investment may be successful, but with the right asset allocation and diversification, you are more likely to make a profit in the long run.

But the more diversified your portfolio is, the more closely it follows the overall market. Most traders and traders want to stay ahead of the market with higher returns. A highly diversified portfolio results in more average earnings than a focused, successful portfolio. Worse-performing assets offset higher-yielding ones.

Managing a diversified portfolio also takes more time and research. To make sound investments, you need to know what you’re getting. With a large portfolio, you are less likely to understand everything very well. If your portfolio is on different blockchains, you may also need to use multiple wallets and exchanges to access your assets. The decision to diversify or not is yours, but some diversification is always recommended.

Different types of cryptocurrencies

Bitcoin is the most famous cryptocurrency and has the highest market capitalization. But a well-balanced portfolio includes a selection of different coins to lower overall risk. Let’s talk about some of them now.
payment coins

Nowadays, it is difficult to find new coins whose primary goal is payments. But when you look at the times when cryptocurrencies were just emerging, you can see that most projects are about value transfer. While Bitcoin is the most well-known example, there are also Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC) and others. These are the first generation cryptocurrencies that existed before Ethereum and the emergence of smart contracts.
stable coins.

It aims to track the value of an underlying asset such as a stablecoin, fiat currency or precious metal. For example, BUSD is indexed to the US dollar with a 1-to-1 reserve. PAX Gold (PAXG) uses the same system, but ties the coin to 31.10 grams (1 troy ounce) of gold held in reserves. While stablecoins don’t usually offer big gains, they do live up to their name and offer more stability.

The cryptocurrency market is volatile, so it’s helpful to keep something in your portfolio that holds its value. If the stablecoin is indexed to something outside the crypto ecosystem, it will not be affected by a drop in the crypto market. If you want to move your tokens out of a coin or project, you can protect your earnings by quickly transferring them to a dollar-denominated stablecoin such as BUSD. Switching to fiat money is a much longer process than returning to a stablecoin.

Security tokens

A security token can represent many things, similar to traditional securities. It can be a stock in a company, a bond issued by a project, or even voting rights. The security tokens have been successfully digitized and put on the blockchain. This means that tokens are often subject to the same regulations as traditional securities. As such, security tokens fall under the jurisdiction of local regulators and can only be issued through a legal process.

Service tokens

A service token acts as a key to a service or product. For example, both BNB and ETH are service tokens. You can use these tokens to pay transaction fees when interacting with decentralized applications (DApps), among other things. Many projects issue their own utility tokens to raise funds with a coin offering. Theoretically, the token’s value should be directly linked to its service value.

Governance tokens

By holding a governance token, you can have voting power on a project or even a share of the proceeds. You can usually find these tokens on decentralized finance (DeFi) platforms such as PancakeSwap, Uniswap, and SushiSwap. Like service tokens, the value of governance tokens is directly linked to the success of the underlying project.

Financial crypto products

A portfolio need not be limited to holding different coins. Financial crypto products can help you further diversify your portfolio. Think of it like investing in government bonds, ETFs or mutual funds instead of just holding stocks. There are so many products that you can invest on different blockchains and DApps.

If you are new to the subject, you can find many different financial products on Binance. You can review them by going to the [Finance] section after logging into your Binance account. All of these products have different levels of risk, so you should make sure you understand the working mechanisms before taking any risks.

Binance financial products

How to build a balanced crypto portfolio?
Everyone who trades or invests has their own idea of what a well-balanced crypto portfolio looks like. But there are some general rules worth considering:

Divide your portfolio into high, medium and low risk investments and give them appropriate weights. A portfolio that contains a large amount of high-risk investments is definitely not well-balanced. It is likely to offer you more profits, but it can also lead to huge losses. While your risk profile will determine what works best for you, different levels of risk should be included in your portfolio.
You might consider holding some stablecoins to add liquidity to your portfolio. Stablecoins play a key role for many DeFi platforms. They can also help you quickly and easily take your winnings or exit a position.
Rebalance your portfolio if necessary. The crypto market is very volatile and your decisions should change based on the current situation.
Strategically allocate new capital to prevent an area in your portfolio from becoming too heavy. If you have recently made a huge profit from a coin, it may be tempting to invest more money in that coin. Don’t be tempted by greed and think about where better to put your money.

Do your own research. This classic advice is one of the most important. Since you are investing with your own money, you should not act only on the advice of others. For tips on identifying potential scams, read our article on 5 Common Cryptocurrency Scams and How to Avoid Them.
Invest only as much as you can afford to lose. If it creates stress for you, your portfolio is not balanced correctly. Your positions should not have serious consequences if things go extremely badly.

Crypto portfolio tracking tools

Portfolio tracking tool is a program or service that allows you to track the movements of your savings. You can see how well your current distribution aligns with your long-term goals and track your progress. Here are some tracking tools you can consider:

CoinMarketCap

CoinMarketCap is an extremely popular price tracking tool that has developed its own portfolio feature. It is possible to use the portfolio tracking tool for free on desktop and mobile devices. This portfolio tracker does not connect to your wallet or exchange, so you have to add your savings manually to use the service. There is also the option to add the prices you buy so that you can track your earnings accurately.

CoinGecko

Although CoinGecko is mostly known for tracking cryptocurrencies, it also has a portfolio option. This service, which you can use from your browser or mobile device, is free. If you use CoinGecko regularly, you can also give this tracking tool a shot.

Blockfolio

Blockfolio is a good option if you want to have the option to trade while managing your portfolio. Operating since 2014, this company has a high reputation in the crypto world. But Blockfolio is mobile only, so it doesn’t offer the same crypto trading experience for desktop.

Delta

Delta is a mobile application that allows you to see your crypto portfolio and traditional investments at the same time. It can be linked to 20 exchanges and many different wallets, including Binance. It has both free and paid versions, but in-app trading is not possible.

Last words

Much of the cryptocurrency market depends on the state of Bitcoin. But that’s not a valid reason not to balance your portfolio. Different crypto investments can offset some of the losses you would suffer if Bitcoin crashed. So it’s always better to diversify a bit. Remember that portfolio balancing is much more than holding multiple coins. With a little strategy, it will be much easier to build a portfolio that fits your risk tolerance.

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Bitcoin (BTC) Technical Analysis: December 2022

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Bitcoin For Beginners (Updated 2022)

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Bitcoin

Bitcoin (BTC) Technical Analysis: December 2022

Published

8 months ago

December 15, 2022

admin

Welcome to our daily Bitcoin technical analysis for the ATHCrypto family! This report will provide an overview of the current market conditions for Bitcoin, identify key support and resistance levels, discuss technical indicators and chart patterns, and provide potential trade ideas based on our analysis.

Market Overview

The Bitcoin market has been volatile over the past 24 hours, with the price moving between $17,365 and $$17,875. On December 14, the Federal Open Market Committee (FOMC) announced another rate hike, raising the federal funds rate by 50 basis points, to a range of 4.25% to 4.5%. On the other hand today, European Central Bank (ECB) also increased the interest rate by 50 basis points.

There have been no major news developments that are affecting the price at this time.

Key Support and Resistance Levels

Using chart analysis, we can see that the key support levels for Bitcoin are currently at $17,578, and $17,442. These levels have previously acted as strong support for the price, and we expect the price to find some support at these levels if it moves lower. The key resistance levels for Bitcoin are currently at $17,871, and $18,335. These levels have previously acted as strong resistance for the price, and we expect the price to face some resistance if it moves higher.

Technical Indicators

Name	Value	Action
Relative Strength Index (14)	53.07	Neutral
Stochastic %K (14, 3, 3)	62.81	Neutral
Commodity Channel Index (20)	124.38	Sell

Source: Tradingview

Name	Value	Action
Exponential Moving Average (10)	17325.29	Buy
Simple Moving Average (10)	17272.50	Buy
Exponential Moving Average (20)	17200.41	Buy

Chart Patterns

Recently, there have been many developments in the cryptocurrency market. Binance saw a large amount of funds withdrawn, Bitcoin’s price rose above $18,000, and the Federal Reserve raised interest rates. Despite these events, some investors are making bullish calls for the market. However, these calls should be dismissed as the spike in Bitcoin’s price could be due to various factors such as Binance buying tokens on the market and speculation by investors. It’s important to approach any investment decisions with caution.

It shows the daily chart of Bitcoin against the US dollar (BTCUSD) and its retracement toward the 50-day simple moving average (SMA), which is often associated with strong market corrections. This level is currently acting as a resistance level for the price of Bitcoin. In order to support the bearish thesis, it would be ideal to see Bitcoin’s price hold below this level. Based on technical analysis, the daily and weekly time frames are currently neutral.

Remember, this is not a recommendation for trading. We hope this analysis is helpful for your trading decisions and wish you the best of luck in the market!

Always do your own research and analysis before making any trading decisions.

Bitcoin

Bitcoin For Beginners (Updated 2022)

Published

1 year ago

March 9, 2022

admin

What is Bitcoin?

Bitcoin is the first decentralized global digital currency. This means, among other things, that it is completely computerized and has no physical form.

Bitcoin can be sent quickly and securely from anywhere in the world. The only requirement is an internet connection. Being a decentralized coin, the price of Bitcoin is determined in the open market according to supply and demand.

Bitcoin is an encrypted coin based on encrypted technology (blockchain) stored in digital addresses distributed on the Internet. Bitcoin is a decentralized currency that is not controlled by central authorities such as governments and banks. Since Bitcoin is an open source project, many developers have contributed and continue to develop Bitcoin code every day.

Bitcoin FAQ for beginners

Who invented Bitcoin? In 2008, during the global economic crisis, also known as subprime, a man or woman with the nickname Satoshi Nakamoto decided that it was the right time for the first digital decentralized currency.

The idea of Bitcoin began on October 31, 2008 with the release of a white paper entitled “Bitcoin, A Peer-to-Peer Electronic Cash System“, written by Satoshi.

Notable is that Satoshi Nakamoto is believed to be a pseudonym, and the identity of the inventor of Bitcoin is unknown to this day. Some claim to be Satoshi Nakamoto, but no one has provided sufficient evidence.

Bitcoin had little monetary value during the first two years of its existence. Nonetheless, a strong and active community of people who continually improve the original code quickly emerged.

In 2010, Satoshi quit Bitcoin development and her last known communication was an email dated April 2011. However, in the years that followed, the community grew larger as Bitcoin began to improve and use cases began to materialize.

Who manages Bitcoin? In the past, companies such as major banks and governments needed to stand behind currencies to ensure economic stability.

But the debt economy began to take shape only a few decades ago. It is our time today that central banks in a country are free to print new banknotes without being tied to tangible assets (such as gold).

This mechanism causes inflation: sustained price increases and the depreciation of currencies over time. It should be noted that prior to this era, money was not controlled by the government or central banks.

Bitcoin gives us complete control over the money we hold.

Behind the scenes: Bitcoin blockchain

The Bitcoin protocol is based on blockchain technology. A blockchain represents a digital ledger that contains all the transactions in Bitcoin’s history divided into blocks. The

Bitcoin blockchain draws its strengths from nodes scattered around the world. Anyone can create a node to help maintain the blockchain.

Therefore, Bitcoin is said to be decentralized. A single entity, such as a bank, company, or government, cannot adopt a network.

Therefore, Bitcoin cannot be shut down!

Who is eligible to create a Bitcoin account?

Unlike banks, anyone can create their own Bitcoin wallet account. This brings many benefits. Perhaps most important are accessibility and resistance to censorship. The banks create policies that customers must follow. If not, the bank has the authority to close the account. Banks can also cancel or freeze transactions and accounts. This cannot happen with Bitcoin because there is no central authority to manage Bitcoin.

When it comes to accessibility, literally anyone in the world with internet access can receive, send, store and trade Bitcoin. Basically, anyone can open a “bitcoin account” to download the digital wallet application.

Sending large amounts of Bitcoin is much faster and cheaper than sending fiat currency by traditional bank transfer. When was the last time you sent $300 million for a $1 fee?

$313 million sent for $1, try this in fiat

Creating Bitcoin: What is Bitcoin Mining?

The process of enabling the Bitcoin network to function while creating new coins is called mining. It is the heart of the Bitcoin network.

If Joe wants to send Bitcoin to Annie, he creates a transaction, signs it with his private key, and then sends it to the network. Here comes the miner.

Basically, a miner validates and validates transactions, inserts them into the next block, and sends them to the public ledger or blockchain. That’s where the word comes from-it’s essentially a chain of blocks.

When was the first Bitcoin mined?

On January 3, 2009, the first Bitcoin was mined around the world. Also known as “block number 0” or “genesis block”. The block included a 50 Bitcoin reward for miners.

What is the miner’s reward?

There are two types of rewards that miners earn. One is the transaction fee for validating the transaction and the other is the block reward.

Miners who manage to solve the above encryption problem will receive a block reward. This is the second type of reward for miners.

At the time of writing these lines, each block has a reward of 12.5 Bitcoins. According to the Bitcoin protocol, if the reward is cut in half, there will be half an event every four years. After half of mid-2020, until the next half of the event, the reward will be 6.25 Bitcoins per block.

So why isn’t anyone mining it?

Mining is the solution of difficult mathematical cryptographic problems based on hash algorithms (the solution is a proof of work added to a new block). In the early days of Bitcoin, personal computers were able to generate enough power to mine Bitcoin. However, in these days of intensifying competition, only major mining companies such as Bitmain can participate in Bitcoin

Please note that the Bitcoin protocol can only create 21 million coins. When that number is reached around 2140, no new Bitcoins will be created and miners will only be compensated for transaction fees.

This brings us to the next point regarding the benefits of Bitcoin over traditional fiat currencies.

How to buy Bitcoin?

The handiest and simplest manner to get Bitcoin is via way of means of shopping for on line or at nearby Bitcoin ATMs which can be placed across the world. The maximum critical aspect is to shop for most effective from a famous provider.

How and where to buy Bitcoin?

Just as ordinary cash are saved to your pockets, Bitcoins also are saved in a committed virtual pockets. Each pockets has its public virtual deal with, to which cash may be received.

The deal with is a string of numbers and English letters approximately 30 characters lengthy. There isn’t anyt any fee to create a brand new pockets, or a restriction at the wide variety of wallets you could have. There are numerous styles of virtual wallets, which range specifically of their protection level.

Storing Bitcoin

Is it secure to send Bitcoin?

A Bitcoin transaction is a digitally signed order and hence, securely encrypted. The transaction is signed via way of means of the outgoing pockets and receives broadcast to the internet, after which receives indexed at the block explorer.

Where can I track my Bitcoin transaction?

The block explorer is a public ledger that continues a stay log of all Bitcoin transactions. The blockchain of Bitcoin is transparent, remember? The ledger is split into blocks, every block carries many log commands, and as soon as the block is closed, the real transaction takes place.

How long does it take to ship Bitcoin?

Usually, it takes a mean of approximately 10 mins to shut a block and affirm a Bitcoin transaction. This varies and is difficulty to community traffic.

What is the fee to send Bitcoin?

The most effective fee of a Bitcoin transaction from one region to another (doesn`t be counted the bodily distance) is the transaction price, that’s brought to every order and paid to the miner for his paintings to shut the block.

Relative to the way of cash transfers, the fee of shifting Bitcoin is appreciably cheaper. The price isn’t always fixed, and maximum of the virtual wallets mechanically calculate the minimal essential price.

The better the price, the quicker the switch could be (i.e., your transaction could be dealt with via way of means of the miner, who prefers to take the better price transactions) As of writing this, Bitcoin`s transaction fee (price) is even much less than $1 for maximum of the transaction.

To emphasize how reasonably-priced it’s far to ship great quantities in Bitcoin, this transaction of $101,000,000 become despatched most effective for as little as a $121 transaction price, that’s kind of 0.00001%.

Is it possible to buy or send less than one Bitcoin?

Bitcoin has 8 numbers after the decimal. The smallest quantity is 0.00000001 Bitcoin, and this unit of dimension is referred to as one Satoshi. It is higher now no longer to ship one of these small quantity due to the fact the transaction price could be better than the quantity despatched.

Bitcoin use: Who accepts Bitcoin? What can I purchase with Bitcoin?

Today increasingly commercial enterprise industries are adopting Bitcoin as a legitimate fee method. Bitcoin`s every day use as cash remains now no longer as not unusualplace because the conventional FIAT, however your Bitcoin account may be related without delay to VISA debit cards (aspect note: you need to test concerning the taxation in such case).

Most Expensive Pizza

During the summer time season of 2010, whilst many had doubted the idea of Bitcoin, one of the early adopters named Laszlo Henitz attempted very difficult and succeeded in ordering pizza and paid for it with Bitcoin.

In the ones days, Bitcoin become really well worth nothing (cents), and to reserve own circle of relatives pizzas really well worth $30, Laszlo paid 10,000 Bitcoins! What become later taken into consideration because the first-ever buy in Bitcoin, additionally have become the world`s maximum luxurious pizza. 10,000 Bitcoins really well worth these days greater than 500 million USD.

Bitcoin

Who is Satoshi Nakamoto, Is He Really Created Bitcoin?

Published

2 years ago

August 11, 2021

admin

If you are interested in Bitcoin or cryptocurrencies, then it is highly possible that you have heard of Satoshi Nakamoto. He is promoted as the creator of Bitcoin, but is he really did? There are many rumors about him, but we would like to note that this name is just a nickname.

Bitcoin is a revolutionary development in the finance industry, and it is quite reasonable for the creator to keep his name anonymous. In addition to this, it will be worth noting that, probably Bitcoin is created by a team rather than an individual.

Below, you can find detailed information about him and his product.

Bitcoin and Satoshi Nakamoto

In 2007, a brand new and first of its kind Bitcoin was introduced on the internet. This paper was published by Satoshi Nakamoto and included detailed information about how this cryptocurrency is operating on computers.

The white paper of the coin was introduced in 2008 on bitcoin.org. Here, detailed information about the computer networks and transactions was described. The sole purpose of this currency was the eliminate the middlemen in trades.

It was 2009 when Bitcoin was officially launched for the public, but the currency gained its reputation in 2017 with the astronomic rise in value. Since the first day, the creator of this coin is unknown.

Who Is Satoshi Nakamoto?

Although the real identity of Satoshi Nakamoto is unknown, there are different guesses on the internet. For example, Nick Szabo is one of these candidates. He is one of the early testers of the coin. Although he rejects this, many people still believe he is.

Another candidate is Hal Finney, who reported many bugs, improved the system, and was one of the first users of Bitcoin. Moreover, he is the one who mined 10 Bitcoins for the first time in the world.

Some people also believe that Dorian Prentice, who is a computer engineer and system engineer in companies offering financial information services.

Some people also believe that the real name is unknown because it is a future tech that is introduced to improve our corrupted traditional financial systems. Of course, this is a fantastic approach but who knows, they may be right.