1. Why is diversification important?
In the world of cryptocurrency, there are no guarantees, but there are strategies that help reduce risks. One of the best ways is proper diversification. This means holding a variety of financial assets, each with a different level of risk. Diversification can be in choosing exchanges as well as in choosing assets.
I have been working on my portfolio for a long time, using AI deep analytics tools among others. And I want to share my findings with you! So, my portfolio combines three categories of assets:
🔹 Bitcoin – the main asset for long-term storage.
🔹 Altcoins – promising projects with high growth potential.
🔹 Stablecoins – provide liquidity and offer opportunities for passive income.
2. What assets did I choose?
🔹 Bitcoin ( $BTC ) – the main asset for long-term storage
Limited supply (21 million coins), making it a deflationary asset. High liquidity of BTC also allows for quick selling or exchanging when needed. It is the foundation of the entire crypto industry, accumulated by large funds, companies, and even state governments, making Bitcoin the most reliable cryptocurrency, often compared to digital gold.
🔹 Altcoins – have high growth potential in the long run
$ETH (Ethereum) – the king of smart contracts, the basis for DeFi, NFT, and hundreds of projects. Ethereum is constantly improving (Ethereum 2.0, Layer-2 solutions), making it attractive for long-term holding.
$BNB (Binance Coin) – more than just an exchange token. It is used for fees on Binance, payment for services, and participation in launchpads. Holding BNB is beneficial, especially with the Simple Earn program, which I wrote in detail here.
XRP (Ripple) – a cryptocurrency focused on international transactions. Many banks are testing XRP to accelerate payments.
LINK (Chainlink) – a leading provider of decentralized oracles that supplies data for DeFi, insurance, and many other sectors.
HBAR (Hedera Hashgraph) – a high-speed blockchain network supported by giants like Google and IBM. One of the most promising ecosystems for enterprise applications.
ATOM (Cosmos) – one of the key blockchains for inter-network interaction. Cosmos offers a unique technology that allows different blockchains to exchange data with each other.
DOT (Polkadot) – similar to Cosmos, but with its own unique structure that ensures scalability and security. This token plays a key role in the Polkadot ecosystem.
ADA (Cardano) – a blockchain with a scientific approach to development. Cardano creates infrastructure for scalable and secure decentralized applications.
SOL (Solana) – one of the fastest blockchains that provides low fees and high performance. Supported by large investors and actively used in DeFi and NFT.
🔹 Stablecoins – liquidity and passive income
USDC, USDT, USDE – stable assets pegged to the dollar 1:1, which can be used for capital preservation and profit through staking and lending.
3. What does my portfolio look like?
I have distributed my assets across several exchanges to minimize risks and maximize staking and lending benefits.
Exchange 1 (Binance): 30% – BTC (20%), BNB (10%), HBAR (10%), USDC (60%)
Exchange 2: 30% – BTC (30%), ADA (5%), SOL (5%), USDT (60%)
Exchange 3: 30% – ETH (30%), ATOM (5%), DOT (5%), USDE (60%)
Exchange 4: 10% – XRP (60%), LINK (40%).
4. How do I earn passive income?
Instead of just holding cryptocurrency, I use the opportunities of exchanges:
Binance is certainly at the top of exchanges, here you can passively participate in Launchpool just by holding your BNB in lending (Simple Earn). I also have USDC in lending, which gives an average of 10-14% annual interest. However, some other exchanges for the other mentioned coins also offer good conditions. Of course, I won't advertise well-known exchanges here, but you can do your own research (DYOR) and explore which platforms offer what conditions for passive income on specific coins that interest you.
I researched available options and found opportunities to earn additional good annual percentages on most of my assets. This is the main reason for the asset distribution across 4 exchanges. Currently, I have the following APR on assets: ETH – 8%, ATOM – 26%, DOT – 17%, USDE – 30%, ADA – 13%, USDT – 12%, XRP and LINK – 10%.
But remember that APR is almost always dynamic and constantly changing, going up and down. This indicator should be monitored, and in case of a significant drop, appropriate actions should be taken.
Thus, I earn passive income without risking trading.
5. Conclusions
✅ Proper diversification helps reduce risks and increase portfolio stability.
✅ Passive income makes investing profitable even in a bear market.
✅ The flexibility of the portfolio allows for easy adaptation to market changes.
👉 What do you think about my portfolio? What coins would you add or exclude? Share your thoughts in the comments! ✍️
P.S. this is not financial advice, everyone must conduct their own research and make decisions on what to invest in.
#BinanceEarn #Diversification #PortfolioDiversification #staking
