Friday, February 23, 2024


> Capital management and portfolio design are important in any financial market from stocks to Crypto. Designing a scientific portfolio and investment plan will help us gain a lot of benefits not only in the market but also in daily life so I will provide everyone with the steps to create portfolio and tools to use to manage it effectively. **I/ What is a Portfolio and Portfolio Management?** ***a, What is a Portfolio?*** A Portfolio is a table of information distributions of assets. coins/tokens that people bought and held. A crypto investor’s wealth table provides an overview of one’s allocation and investments. Usually, the goal of building a portfolio in crypto is for investors. tend to want to hold many different cryptos.. ***b, What is Portfolio Management?*** Portfolio management are activities that include the selection of cryptocurrencies to form a portfolio. In addition, portfolio management helps to allocate capital appropriately to optimize the return and risk of the portfolio and monitor the portfolio to be able to reallocate capital or replace new projects accordingly. . **II/ Benefits of having an investment portfolio** * Controlling greed: Having a goal and a plan to achieve it, will help us partly control greed and avoid oscillation, other FOMO. * Psychological comfort: When there is a plan as well as scenarios to prepare for when there is a risk, everyone will feel that the investment is no longer too pressured and completely unaffected by factors. negative psychology * Good focus on the main job: When we have a comfortable mind, control greed as well as a scientific way of investing, our investment time will be optimized more. From there, you have more time to focus on your main job, learn to improve your income and use that income to reinvest. **III/ Factors that make up an effective portfolio** ***Classification in the portfolio* **The crypto market has a lot of tokens/coins from many ecosystems, many different areas Therefore, they can be classified according to the following criteria: * What category does the project belong to? * The ecosystem the project is growing on. * Is this category or ecosystem attracting/willing cash flow? For example: Currently on the crypto market, there can be many different types of crypto tokens/coins with the same category), some of which can be mentioned as follows: * Blockchain platform. * Defi * Layer2 * Metaverse, Gaming * NFTs. * Socialfi, Meme… ***Diversify Portfolio :* **By investing in many different projects, people can spread their risk and allocate their investment capital into multiple asset classes. different instead of a single type to achieve the goal of improving investment performance (based on return and risk criteria), For example, how to allocate capital for layer1, memecoin, NFT? ***Identify return and risk:*** Determining the expected return target of the portfolio as well as measuring the risk of the portfolio will help people to allocate capital to each asset category. products in their portfolio in a reasonable manner. Besides, determining expected profit and measuring risk also helps people to take profits or cut losses reasonably before unexpected fluctuations from the market **III/ Steps to take.** ***Step 1/Plan*** In this step people will need to define the following factors: * Investment goal: Defining a goal will help people focus only on it to serve for the following steps such as selecting assets in the portfolio, allocating capital or investing time, etc. Investment goals must match the amount of capital and knowledge that people have in the market. * Amount of investment capital: Determine the amount of investment capital, for example, if people have small capital, which projects to invest in and how to accept risks, but for people with large capital, there will be a way to other capital to match your account. * Investment taste: Determining your risk appetite will make it easier to select projects to include in your portfolio. * Investment time: Similar to determining risk appetite and portfolio goals, investment time is also essential in financial planning. A long investment period will usually have a lower level of risk than a short term investment period with the same goal. * Contingency plan : Make a contingency plan for each case such as urgent need for money or the project being held for some reason leading to bankruptcy, .. ***Step 2/ Implementation*** Next In the second step, people will rely on step 1 with the elements of asset classes in the portfolio, profit and risk as I mentioned above. The goal of this step will be to help people come up with the most suitable portfolio for optimal return and risk allocation. ***Step 3/ Feedback*** The last step is Feedback, because the crypto market in general and crypto in particular is always volatile, it is always necessary to monitor, evaluate and reallocate capital on a regular basis. . Also, Feedback on investment helps us to learn from mistakes from the past to avoid making the same mistakes in the future.

Source: Collector



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