Binance Academy

Verified Binance official account

Carefully! Lots of text.

Balancing a cryptocurrency portfolio is similar to balancing a traditional portfolio and helps significantly reduce risk to suit your profile and investment strategy. First of all, you need to diversify your investments between different cryptocurrencies.

Everyone determines the degree of diversification for themselves, since this solution has both advantages and disadvantages. It is believed that even partial diversification can be quite profitable. One way to reduce risks is to store different crypto assets (including stablecoins) in a portfolio and regularly redistribute assets.

To make portfolio management easier, you can use dedicated portfolio trackers or enter your own transaction data into a spreadsheet. Some of these trackers can be linked to your personal wallets and cryptocurrency exchanges, making the process even more convenient.

Introduction

Getting started with cryptocurrency investing is as easy as buying your first Bitcoin (BTC), Ethereum (ETH), or any other cryptocurrency. Some investors prefer to buy and hold the most popular cryptocurrencies, while others prefer to experiment with altcoins. How to achieve the best result? You'll have a better chance of success if you carefully consider your asset allocation strategy and regularly rebalance your crypto portfolio. You can do this in different ways - it all depends on your willingness to take risks. Overall, rebalancing your portfolio is not difficult, and the results can pay off many times over.

#Portfolio