Investors looking to enter the cryptocurrency market should start by building the core of their portfolio, according to a video by Crypto Casey. The low-risk section of the portfolio should include at least 50% of total funds invested in one of the safest cryptocurrencies, with Ethereum singled out by Crypto Casey as likely to outperform rival Bitcoin in the next bull run. Medium-risk alternative coins comprise the next 40%, with the final 10% reserved for high-risk small coins. Lastly, Crypto Casey shared a bonus method for multiplying investments across the portfolio.
You want to put your first $1000 into crypto but where do you start? With the bear market in full effect, smart buyers are beginning to come out of hibernation looking for those delicious crypto deals. And in fact, it’s times like these where I’ve made my best investments.
Part One: Best Core Cryptos
Part one is the best core cryptos, and this is the low-risk area of our portfolio. Part one is building the core of your portfolio, and this is where you want to put at least 50% of your funds. This is the lowest risk section of a portfolio, and when investing with your core portfolio, you can expect a five to seven X returns between now and the next bull run.
According to Coinbase, one of the largest crypto exchanges out there, anything over a 10 billion market cap is considered a large crypto. And at this point in time, there are actually only nine cryptos right now with an overall market cap of over 10 billion dollars, and two of them are stable coins.
So that leaves us seven different projects to choose from to make up this part of our portfolio. Out of these seven of the top nine that you could put your portfolio in, I’m actually only going to choose one, and that is Ethereum.
Part Two: Medium Risk Best Alternative Coins
Part two is medium risk best alternative coins. This is classified as anything under 10 billion in market cap to that of a 200 million market cap. This is where I’m putting 40% of my portfolio.
One of the first main issues I’m looking at for crypto to solve is with the actual scalability issues to that of Ethereum. And there are a couple of cryptos that are striving to do that. First up is Near Protocol, it deals with a technology called sharding, a proof of stake blockchain founded by two MIT tech developers.
Another mid-cap coin that I think would be great to look at is the internet of blockchains, Cosmos. This network was designed around interoperability within the different blockchains out there, and this is achieved through their protocol IBC which allows for the communications within the different blockchains.
The last mid-cap I’m going to be looking on the list which is the smallest by the way, is Dag Constellation. This is another layer one that’s looking to solve some of Ethereum’s issues.
Part Three: High Risk Small Coins
Part three is high risk small coins meaning you have more potential for growth, But also more potential for loss.
Part Four: Bonus Method
Part four is a bonus method that you are going to use to multiply all of your crypto investments.
In conclusion, investing in cryptocurrency is always risky, and it’s essential to do your research before investing. By considering the best core cryptos, medium risk best alternative coins, high-risk small coins, and a bonus method, you can make informed decisions about where to put your money.