Hightlight Notes
- ๐ Market Preparation: The crypto bull market/ Bear Market , necessitating a well-structured portfolio to maximize gains and minimize losses.
- ๐ง Understanding Risks: It's crucial to understand the risks and rewards of different cryptocurrencies to formulate an effective investment strategy.
- ๐ Crypto Categories: Cryptos can be categorized into large caps (>$1B), mid caps ($100M-$1B), small caps (<$100M), and stable coins, each with distinct risk profiles.
- ๐ Market Cap Insights: Market cap is calculated by multiplying the number of tokens by their price, influencing investment decisions.
- ๐ฐ Large Caps: Represent low risk and reward; ideal for conservative investors looking to minimize volatility.
- โก Small Caps: High risk, high reward. They are often newer and can yield significant returns but also potential loss.
- โ๏ธ Mid Caps: Offer a balance between risk and reward; often recognized but not fully established in the market.
- ๐ต Stable Coins: These are essential for liquidity and can provide passive income, but they also carry risks.
- ๐ Portfolio Construction: Keep to a handful of cryptos (3-4 per category) for manageable tracking.
- ๐ Personal Risk Tolerance: Your investments should reflect your financial situation, age, and risk appetite.
- ๐ Focus on Niches: When selecting cryptocurrencies, prioritize their use cases and categories rather than individual tokens.
- ๐ฆ Diversifying Stable Coins: Aim for a mix of stable coins to mitigate regulatory risks and benefit from different attributes.
- ๐ก Yield Opportunities: Invest stable coins in lending protocols or liquidity pools to earn returns while waiting.
- ๐ Security Practices: Always store your investments in a secure wallet, preferably a hardware wallet for added protection.
- ๐ Community Engagement: Consider joining investment clubs for insights and potential profitable small caps.
- ๐ Rotate Investments: Profits from small caps should be reallocated into larger assets to maximize overall portfolio health.