Trading in the cryptocurrency market requires significant organization and planning, because if you rely on luck and don't have a plan, you will likely lose your capital.
Therefore, in this article, I will explain how to build your investment portfolio correctly.

First: Choose the storage method for your wallet

When we say investment portfolio, it doesn't have to be a physical wallet for cryptocurrencies; it could be an account on a platform.
To determine what you need, you should know the answers to these questions:

  • What is the largest amount you will keep in this wallet?

  • What is the average duration of the transactions you will enter?

  • Is the cryptocurrency market your investment priority?

Knowing how much you plan to invest is important in determining the storage method, because if you plan to hold a large amount, at least $100,000, it is preferable to keep it in an external wallet.
But if the amount is less than that, it is easier to keep it in your trading platform account.

Knowing the average duration of your trades is important because if the trades are quick or daily, it won't be easy to withdraw the currencies multiple times for exiting the trade, so having your investments on a platform would be better.

Finally, if the cryptocurrency market is a priority in your investments, this may determine how closely you follow market news, which in turn allows you to move between the portfolio and the account.

After answering these questions, you can now move on to the second point.

Second: The type of your investments

As it is always said: don't put all your eggs in one basket.
The generally accepted distribution for your portfolio is as follows:

  • 50% in large coins like BTC and ETH

  • 40% in altcoins like BNB, SOL, and others

  • 10% in high-risk coins like memes

Of course, some may differ in the percentages, but in my opinion, the types of currencies should preferably not differ, as they give you the best exposure to the market while keeping your investments safe from risk.

Third: Set your goals

In the end, the cryptocurrency market is a financial market.
Your goal in buying these cryptocurrencies is profit, so don't fall into the trap of holding cryptocurrencies without an exit plan or with unrealistic goals.
Study the project, analyze the market value, and examine the currency's movement well before setting your goals.