A cryptocurrency portfolio is a collection of various cryptocurrencies owned by an investor or trader. It can include Bitcoin, altcoins, NFTs, and other digital assets. Similar to traditional investment portfolios, a crypto portfolio reflects the investor's goals, risk tolerance, and vision.
Why is a cryptocurrency portfolio needed?
Diversification:
Allocating investments across different cryptocurrencies helps reduce risks associated with the volatility of individual assets.
Return optimization:
Diversification increases the likelihood of generating profits by participating in various market trends.
Risk management:
An investor can distribute funds among assets with different risk levels, according to their risk tolerance.
Achieving financial goals:
A crypto portfolio can be formed to achieve specific financial objectives, such as saving for retirement or purchasing real estate.