– ADVANTAGES: appropriate capital allocation, risk reduction, profit optimization, psychological stability. – I see a very common problem that newbie often encounters that is buying according to others and not having a plan to allocate capital, leading to the initial investment amount equal to 1 house, but when Downtrend is currently the value is only 1 the phone (holding too many coins in the same array or too many Lowcap, shitcoin). And this is also the reason I write this article to help people have a better plan to allocate capital to increase their investment efficiency for the next cycle. – To build an effective Portfolio, the first step we need to determine our RISK TEMPERATURE and allocate according to the ratio that you find most suitable. – For example, if you are a venture capitalist, you can allocate 2-5-2-1 (20% safe, 50% potential, 20% lowcap, 10% stablecoin). This part depends on the taste of each person. I will divide the criteria for building Portfolio into 4 parts: **1. SAFETY:** In this section, we will allocate to large-cap projects and projects necessary for market development (Top cap). For example ETH (accounting for nearly 20% of the market share, most projects are built on ETH), Layer 2 is developing (using eth as fee gas). L2 War takes place definitely ETH is the most profitable and L2s are raising ETH. Or Oracle (The crypto market wants to grow, it needs oracle, which Chainlink has more than 51% market share). The secure part is the asset classes such as: Layer1, Oracle, Storage,… **2. POTENTIAL:** are projects with strong growth potential in the long-term for example: Layer2, Defi, Gamefi, NFT, Metaverse,….. **3. RISK: **These are low-cap and high-growth projects (x100,x1000) (Lowcap), memecoin. **4. REFERENCE:** This is a reserve of stablecoins that can be used for trading, DCA every time the market crashes. – Above are the 4 criteria that should be present to create an effective Portfolio to get ready for the upcoming Uptrend season. Hopefully this article will help everyone have a better investment plan and capital allocation in the next cycle.
Source: Collector
