TRON


TRON is a blockchain-based, open-source protocol for the global digital entertainment industry. TRON supports various kinds of blockchain networks and smart contract systems, including bitcoin, Ethereum, EOS, Qtum, and other public blockchain smart contracts, provides developers with multiprotocol infrastructure for entertainment app development, and allows users to enjoy smooth multiprotocol smart networks.

Instructions

Crypto Potential


Crypto-Potential is a platform which provides specialized ICO reports evaluated by certified crypto experts called ICO Detectives. Investors gain access to the specialized ICO reports from a decentralized database which contains critical information for their investments.

Instructions

USDX Wallet [Round 3]


USDX Wallet is a blockchain-based cryptowallet made for instant payments. It features USDX − a stable cryptocurrency for everyday use. Pegged to the U.S. Dollar, USDX is a safe way to pay and store your funds. Setting up an account in the wallet is easy and takes only a minute.

Instructions

Only new (that had not participated in the Round 1) airdrop hunters are allowed to participate

TerraGreen

Ends in 31 day(s)

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TerraGreen consists of a blockchain powered attempt for micromanaging biomass wastes from agricultural & forestry sectors which converts it to the renewable energy products through natural resources.

Instructions


Required tools:

  Telegram   Twitter   E-Mail

  1. Start the Telegram Bot (JOIN THE AIRDROP)
  2. Pass the human verification from the bot.
  3. Join Telegram group.
  4. Follow Twitter
  5. Submit your ETH wallet address to the bot
  6. Signup at TerraGreen and complete your KYC after the ICO ends
  7. Signup at the Terragreen Wallet page and submit your Terragreen wallet address to the TerraGreen ICO page 15 days before the ICO ends. ICO ends on May 2nd, 2019.

VeganNation


VeganNation incorporates vegan values into a blockchain-based ecosystem. Consumers, business owners and businesses wil use one cryptocurrency, making it easier, cheaper and safer to trade. The power of a caring community, together with blockchain technology, is generating a new certainty in the lives of vegans everywhere, with VeganNation’s community-based supply chain tracking system, utilizing the power of community to foster trust for millions.

Instructions

Kuverit


Kuverit’s innovative mainstream solution will combine peer to peer guarantee trading, designed to eradicate peer to peer fraud, with the world’s first “fully independent” appified blockchain insurance company, designed to protect everything for everyone, everywhere.

Instructions

Arfreyr [Round 2]

Ends in 18 day(s)

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ARFREYR is a unique platform that will revolutionize mCommerce by leveraging Augmented Reality.

Instructions


Required tools:

  Telegram   Twitter   E-Mail   LinkedIn   Phone

  1. Start the Telegram Bot (JOIN THE AIRDROP)
  2. Join Telegram group (mandatory, +50 FRY)
  3. Join Telegram channel (mandatory, +50 FRY)
  4. Sign up for the website (mandatory, +100 FRY)
  5. Follow Twitter  and retweet the pinned tweet (optional, +150 FRY)
  6. Download the IOS app (optional, +300 FRY)
  7. Follow LinkedIn (optional, +50 FRY)
  8. Join sponsor Telegram group (optional, +25 FRY)
  9. Follow sponsor Twitter (optional, +25 FRY)
  10. Submit your details and ETH address to the bot

Carna Life

Ends in 31 day(s)

47 views 


MedApp UK Ltd is an official provider and distributor of MedApp SA technology called Analytical telemedicine system CarnaLife. Medapp UK Ltd is also the official entity involved in the preparation and execution of the ICO project.

Instructions


Required tools:

  Telegram   Twitter   E-Mail

  1. Start the Telegram Bot (JOIN THE AIRDROP)
  2. Join Telegram channel
  3. Join Telegram group
  4. Follow Twitter
  5. Submit your details and ETH address to the bot

Guide to Crypto Derivatives: What is Cryptocurrency Derivatives?

Home » Derivatives » Guide to Crypto Derivatives: What is Cryptocurrency Derivatives?

This guide to crypto derivatives takes an introductory look into an interesting development, tackling a core question on what is cryptocurrency derivatives.

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

Overview

The cryptocurrency market has blossomed into a diverse ecosystem of over 2,000 coins and tokens, with each of them focusing on a specific type of application and use case that is built using the revolutionary blockchain technology. Though the infrastructure supporting the cryptocurrency world is still in its early stages, there are various developments that would warrant greater exposure and awareness of cryptocurrencies. One such advancement is the introduction of a cryptocurrency derivatives, which is a brand-new line of financial products. The most common form of cryptcurrency derivatives at the moment is Bitcoin futures, which received a mixed reaction among the community.

The popularity of Bitcoin futures is apparent when we look at the average trading daily volume, which has seen an increase of more than 40% in the third quarter of 2017. In monetary terms, the average daily volume of Bitcoin futures stood at 5,053 contracts, with a cumulative value of approximately $177 million. This data is pretty impressive, especially if we take into consideration that the cryptocurrency market has been in a recession since the start of 2018, where the general prices of coins and tokens have plummeted by more than 85%!

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

(Source: Investopedia)

Greater trading volume is an indication of good liquidity, which is always a good thing for market participants. This reflects a growing and healthy marketplace.

(Read more: How Will Bitcoin Futures Affect Bitcoin Prices? Here’s What History Says)

What are Crypto Derivatives?

Before we move on, let’s try to understand the universe of cryptocurrency derivatives.

A derivative is simply a financial contract between two or more parties that derives (hence ‘derivatives’) its value from an underlying asset, in this case, cryptocurrencies. More specifically, it is an agreement to buy or sell a particular asset – be it stocks or cryptocurrencies – at a predetermined price and a specified time in the future.

Derivatives do not have inherent or direct value by themselves; the value of a derivative contract is purely based on the expected future price movements of the underlying cryptocurrency.

There are 3 common types of derivatives product in the financial world:

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

The three main forms of derivatives are:

  • Swaps: A swap is an arrangement between 2 parties to exchange a series of cash flows in the future, usually based on interest-bearing instruments such as loans, bonds or notes as the underlying asset. The most common form of swaps are interest swaps., which involves the exchange of a future stream of fixed interest rate payments for a stream of floating rate payments between 2 different counter-parties.
  • Futures: A financial contract where a buyer has an obligation for a buyer to purchase an asset or a seller to sell an asset (such as commodities) at a fixed price and a predetermined future price.
  • Options: A financial contract where a buyer has the right (not an obligation) to purchase an asset or a seller to sell an asset at a pre-determined price by a specific timeline.

Due to the infancy of the cryptocurrency derivatives market, there is only a few derivatives products available for the public at the moment. The most common cryptocurrency derivatives are Bitcoin futures and options, due to the fact that Bitcoin controls over 50% of the entire cryptocurrency market capitalization, making it the largest and most-traded coin around.

(See also: Will A Crash in Bitcoin’s Price Lead to Its Demise?)

Reasons For Trading Derivatives

Derivatives are highly complex financial instruments that is used by advanced or technical investors. There are two main reasons for the use of derivatives, which include:

1. Protection from Volatility

The fundamental reason for the existence of derivatives is for individuals and corporations to reduce their risk exposure and protect themselves from any fluctuations in the price of the underlying asset. Here’s a real-life example that explains how derivatives are used to offset risks:

Imagine if you’ve decided to get a cable TV subscription to watch your favorite channels. As a buyer of the service, you will enter into a fixed agreement with the cable company to allow you to get a specified number of channels at a monthly fixed price for a period of 1-year. This is similar to a futures contract, where you specify the exact price that you’re going to pay and the exact product/services you’re going to receive within the specified period of 1-year.

In other words, you have secured the monthly pricing of cable TV channels for a full year, knowing full well that you’re going to pay a fixed price no matter what, even if the price for cable TV rises during the year. By entering into this agreement, you reduce your risk of having to pay a higher monthly price throughout the year.

This is how derivatives work, except instead of cable TV, a rice farmer may be trying to secure sales of next season’s produce. Since the price of rice fluctuates on a daily basis depending on market conditions, the rice farmer would be keen to fix the price the next year’s harvest so that he would be protected from the volatility of daily price fluctuations. Businesses would also need to use derivatives to reduce their risk exposure. A bakery trying to buy wheat flour from a farmer would use a derivative contract to ‘lock-in’ the price of wheat flour for the year. This ensures that the bakery business can forecast its budget for the business year and protect itself from the fluctuations of wheat prices.  It is these derivatives contracts between a buyer and seller that can be traded in the derivatives market.

(Read also: Guide on Identifying Scam Coins)

2. Hedging (Insurance Policy)

Investors could also use derivatives to protect their investment portfolio. This is also called ‘hedging’, which entails taking measures to offset potential losses. Derivatives serve as a vital risk management technique for institutions and investors. The concept of hedging is similar to owning an insurance policy for your portfolio. Here is an example to illustrate a hedging scenario:

Assume that you are bullish on Apple (AAPL) and owns a significant amount of AAPL stocks. However, there is a tremendous amount of risk that you’re holding; if the American economy suffered from a systemic shock or bad news, you can be sure that AAPL prices would tumble and reduce your investment capital. You can use derivatives – in the form of options contracts – to reduce your overall investment risk. Using a type of options called ‘put options’, you can profit from your options contract since they will increase in value when prices of the underlying asset (in this case AAPL stocks) goes down.

So, if you own AAPL stocks and are worried about the unforeseen circumstances that can adversely affect your portfolio, you can buy derivatives to protect your investments and offset the potential losses. Although the main value of your AAPL investments drops in value, the increase in the value of your put option derivatives will offset the overall loss. Depending on factors such as experience and expertise in derivatives, an investor or trader could be profitable in any situation, be it a bull or bear market.

Hedging could save you from potential headaches or worries that you might face in your investing journey. Having an insurance policy by using derivatives ensures that you manage your risks well and more importantly, allows you to have a good night’s sleep!

(See more: Cryptocurrencies: A New Asset Class for Institutional Investors?)

3. Speculation

Traders often utilize derivatives to speculate on the prices of cryptocurrencies, with the main objective of profiting from the changes in the price of the underlying cryptocurrency. For instance, a trader might attempt to profit from an anticipated drop in the general prices of cryptocurrencies by ‘shorting’ the coin. Shorting – or short-selling – refers to the act of betting against the price of a security. Speculation is often viewed negatively since it adds a higher degree of volatility to the overall marketplace.

Traditionally, the way to profit from cryptocurrencies – or any securities for that matter – is to buy a coin at a low price and sell at a higher price later. However, this can only be done in a bull market, or when the market is trending upwards. Shorting is a way to profit from a bear market, or when the market is in a downtrend.

The easiest way to ‘short’ is for you to borrow a security from a third party (an exchange or broker) and sell it immediately in the market since you expect prices to fall. You can re-enter the market once prices have fallen and buy back the same amount of securities that you initially sold. Thereby settling your account with the third parties. In this case, you will profit from selling the securities initially and buying them back at lower prices.

An easier way to short is by using derivatives contract since it is much cheaper and ‘capital efficient’. If anyone thinks that the prices of a cryptocurrency is unsustainable or would be experiencing a downtrend soon, they could sell derivative contracts in the open market to anyone who thinks otherwise (that the market is going to go upwards).

Read more: Crypto Beginners Guide: 5 Things Crypto Newbies Should Know)

Spot Market vs Derivatives Market

There are generally two kinds of markets in the cryptocurrency world; the spot market and the derivatives market. Both have their own unique characteristics, which can be shown here:

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

The spot market (or the ‘cash’ market) refers to the exchange and settlement of financial assets – such as stocks and cryptocurrencies – immediately. This means that the ownership of cryptocurrencies is immediately transferred between market participants (from a seller to a buyer) instantly after the transactions are executed. When you go to an exchange to purchase any cryptocurrency, you are participating in the spot market since the transaction occurs on the ’spot’ and you will own the coins that you purchased immediately.

The derivatives market is where participants trade contracts instead of the actual asset itself. These contracts possess value, which is directly tied to the underlying asset. Therefore, derivatives are financial instruments rather than an asset.

(See more: Evolution of Cryptocurrency: Replacing Modern Cash)

Where to Trade Crypto Derivatives

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

LedgerX was the first regulated institutional exchange that introduced Bitcoin derivatives, in the form of swaps and options. Only accredited investors and institutional players can trade on LedgerX’s trading platform.

Bitcoin futures were first introduced by Chicago Mercantile Exchange (CME) and Chicago Board OptionsExchange (CBOE) on December 2017. Chicago Mercantile Exchange (CME) is the world’s largest derivatives exchange, handling over 20% of the total derivative trading volume globally. Retail investors who are keen to trade CME’s Bitcoin futures can do so via an associated vendor or broker listed here. The differences between CME and CBOE derivatives are shown below:

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

In terms of derivatives offered by pure cryptocurrency exchanges, Bitmex, OKEX and CryptoFacilities are the current major players. It is important to note that the derivatives product offered by pure cryptocurrency exchanges are not regulated by any jurisdiction at this moment. This increases the risks associated with those derivatives. Here is a comparison between cryptocurrency exchanges that offer derivatives:

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

Bakkt is a highly-anticipated cryptocurrency futures exchange that is backed by Intercontinental Exchange (ICE), which is the 3rd largest exchange group in the world, behind CME and Hong Kong Exchange. Not only is Bakkt owned by the parent company of the New York Stock Exchange (NYSE), Bakkt is supported by various heavyweights such as Microsoft, Starbucks and Pantera Capital. Bakkt aims to offer Bitcoin futures by January 2019.

Another major player aiming to enter the derivatives space is Nasdaq, the world’s second largest stock exchange. Nasdaq plans to roll out its Bitcoin futures by the first quarter of 2019.

(Read also: Crypto Trading Guide: 4 Common Pitfalls Every Crypto Trader Will Experience)

Word of Caution

Although derivatives was one of the core factors that contributed to the global financial crisis back in 2007, it is still a vital tool in managing investment risks. The market has been extremely excited for cryptocurrency-based derivatives product since major traditional exchanges – CBOE and CME – launched Bitcoin futures at the end of 2017. It is easy to see that the derivatives market is needed for a vibrant financial ecosystem, and perhaps this is the bridge that is needed to enhance the awareness of cryptocurrencies to the mass market. However, caution must be exercised when dealing with derivatives given their complexity and sophistication.

The next article will dive deeper into the technical details of how derivatives actually work and the implications of using these complex financial products.

(You might also be interested in: Evolution of Cryptocurrency: The Problem With Money Today)

Beneficial Resources To Get You Started

If you’re starting your journey into the complex world of cryptocurrencies, here’s a list of useful resources and guides that will get you on your way:

Crypto Derivatives, Derivatives , Cryptocurrency Derivatives, What is Cryptocurrency Derivatives, guide to crypto derivatives

Trading & Exchange

Wallets

Read also: Guide on Privacy Coins: Comparison of Anonymous Cryptocurrencies and Guide To Cryptocurrency Trading Basics: Do Charts & Technical Analysis Really Work?


This represents the writer’s personal opinions and does not – in any way- constitute a recommendation of an investment or financial advice. Please assume caution when investing in cryptocurrencies and do so at your own risk, as it is extremely volatile and you can lose your money.


Enroll in our Free Cryptocurrency Webinar now to learn everything you need to know about crypto investing.

Get our exclusive e-book which will guide you on the step-by-step process to get started with making money via Cryptocurrency investments!

You can also join our Facebook group at Master The Crypto: Advanced Cryptocurrency Knowledge to ask any questions regarding cryptos!

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4 Types of Coins to Diversify Your Crypto Portfolio & Manage Risks

Home » Uncategorized » 4 Types of Coins to Diversify Your Crypto Portfolio & Manage Risks

This guide will take a look at 4 types of coins to diversify your crypto portfolio & manage risks in the extremely volatile cryptocurrency market.

Crypto portfolio, 4 types of coin, diversify crypto portfolio, manage risks, 4 Types of Coins to Diversify Your Crypto Portfolio

In the volatile world of cryptocurrency trading, it is important to implement some strategies needed to manage your cryptocurrency investments. Managing your investments well means that your portfolio of coins is protected against risk. This guide will explore the different type of coins you should hold in order for you to manage a well-balanced investment portfolio.

A portfolio is a term that represents the collection of all investments you own across all types of investment assets. If you only own 10 types of coins and tokens, then your portfolio consists of only the 10 cryptocurrencies. It is much better to own different kinds of investments across different categories. For instance, having a portfolio consisting of a mix of cryptocurrency coins, stocks, and bonds.

Let’s start the ball rolling by understanding the most important concept in investing, called ‘Risk’.

(Read more: Analyzing Cryptocurrency Risk: Existing Coins vs ICO)

What is Risk?

Risk is defined as the possibility of loss that an investor is willing to take in exchange for the possibility of gains from his investments.

There are generally two types of risk in the cryptocurrency market:

  1. Market (Systematic) Risk

Market risk is the risk associated with the overall performance of the cryptocurrency markets. Market risks cannot be eliminated. If you’ve been an investor in the cryptocurrency space since the start of 2018, you will understand that the cryptocurrency market is highly correlated to Bitcoin and each other. The entire market crashed at the start of 2018 after a tremendous run in 2017, and no matter which coins you invested in, almost all coins and tokens experienced massive losses. This is an example of market risk.

  1. Coin-Specific (Idiosyncratic) Risk

Coin-specific risk refers to the isolated risk of a single coin or token in the cryptocurrency market, influenced by factors specific to the project itself. If for example, a project experiences a negative event (such as network failure or running away with investors’ funds), then the coin holder that invested in that project will be a victim to the project-specific risk. Coin-specific risk can be reduced through diversification.

The fact is that in the investment marketplace, risks is as much an incentive as it is a red flag.  Conventional financial wisdom states that the higher the risk, the greater the expected returns. It’s no surprise that cryptocurrencies are the riskiest investments you can make.

Crypto portfolio, 4 types of coin, diversify crypto portfolio, manage risks, 4 Types of Coins to Diversify Your Crypto Portfolio

(See also: Crypto ICO vs. Stock IPO: What’s the Difference?)

Key Factors to Consider When Investing

Let’s take a look at several key factors that you need to consider when investing in cryptocurrencies.

  1. Timing

As you build your cryptocurrency trading portfolio, it is vital to take into consideration the basic elements of tokens and coins trading. In understanding the timing element, you are well-placed to know what to do when the market goes red and movement is trending downwards.

The common principle here is to buy when the bears take over (when the market is down) and sell when the bulls are raging (when the market is up). The key concern here is not about the predictability of market price, rather, it is knowing the action to take in the face of prevailing circumstances.

“The time to buy is when there’s blood in the streets.”

– Baron Rothschild

(Read also: Guide to Cryptocurrency Liquidity: Understanding Liquidity & Its Importance)

  1. Investing vs Trading

Crypto portfolio, 4 types of coin, diversify crypto portfolio, manage risks, 4 Types of Coins to Diversify Your Crypto Portfolio

Research must be undertaken before investing in anything, especially if you’re planning to invest only in cryptocurrencies. There’s over 2,000 coins and tokens to choose from and the crazy volatility of the cryptocurrency market can set you up for an uncomfortable ride. In the investing world, there are two main types of analysis: Fundamental analysis and Technical analysis.

Investors often use fundamental analysis to evaluate the long-term prospects and viability of a cryptocurrency. A trader, on the other hand, would utilize technical analysis by studying price charts, patterns, signals and indicators to make short-term decisions. Knowing which type of individual you are and the types of risk you’re comfortable with is key to understanding which type of analysis you should employ. Short-term trading is riskier due to the volatility of the markets.

(Read also: Guide To Cryptocurrency Trading Basics: Do Charts & Technical Analysis Really Work?)

  1. Personal Competency

One other key consideration that will help your cryptocurrency investment portfolio is to focus on your core competencies and strengths. Some question you can ask yourself:

In building a competence cycle for yourself, you get grounded in the tokens and coins that will work best for you. No individual knows everything, and it is best to develop an area of comparative strength. By doing this, you will be able to call the shots in your area of competence and minimizes losses.

(See more: Crypto Beginners Guide: 5 Things Crypto Newbies Should Know)

4 Types of Coins to Diversify Your Crypto Portfolio & Manage Risks

Let’s take a look at the four different type of coins that you should have in your cryptocurrency portfolio and manage your risks better.

Crypto portfolio, 4 types of coin, diversify crypto portfolio, manage risks, 4 Types of Coins to Diversify Your Crypto Portfolio

  1. The Founding Father: Bitcoin

Let’s be honest, cryptocurrencies wouldn’t have existed if it weren’t for Bitcoin. The creation of Bitcoin and its underlying technology- Blockchain – kickstarted a diverse industry of coins and tokens that leverages on this revolutionary technology to solve real-world issues. Bitcoin’s status as the ‘Founding Father’ of cryptocurrencies will always prevail. Bitcoin is currently the largest cryptocurrency based on market cap and makes up over 50% of the entire cryptocurrency world. It would be fair to say that the entire cryptocurrency market is highly correlated to Bitcoin’s price movements.

Bitcoin is also the default base currency of the cryptocurrency world. Anyone that wants to buy any other altcoins or tokens, would need to purchase Bitcoin first in order to easily acquire any other coins. This is because local cryptocurrency exchanges usually limit the amount of coins that can be purchased by local fiat money.

By holding some percentage of Bitcoin, you can give a balance to your investment as a market downtrend or uptrend will almost always be initiated by Bitcoin. It is important to have a part of your portfolio in Bitcoin.

Recommended Holdings: 25% – 33% of Your Portfolio

  1. The Most Popular: Ethereum

It is no surprise that Ethereum is one of the most popular coins in the cryptocurrency world. The Ethereum blockchain is the most actively developed blockchain in the industry, spearheading many innovations within the industry. Over 85% of the tokens in existence is built on the Ethereum blockchain, therefore solidifying Ethereum’s position as the most credible blockchain platform currently in the market. Although there are several notable blockchain competitors like NEO or WAVES, Ethereum still holds the fort in terms of development and credibility.

Ethereum is also one of the coins that is used alongside Bitcoin as a base currency since it is much faster than Bitcoin. The utility of Ethereum is also correlated to its price; the more developers and projects built on Ethereum, the higher the demand for ETH coins, which will lead to a price increase. Having a portion of your investments in established and credible coins such as Ethereum is vital in stabilizing your portfolio.

Recommended Holdings: 15% of Your Portfolio

(Read more: Guide to Smart Contract: What are Smart Contracts?)

  1. Passive Income Provider

There are some coins and tokens that help investors to earn passively. These coins and tokens – apart from their inherent values – also conduct regular distributions monthly, quarterly or bi-annually. They will reward you with free coins just by holding on to your current coins. This is also known as interest-bearing coins. Stellar, Bankera and NEO are examples worth looking at here. While NEO is more widely known for free distribution, Stellar is shockingly lesser-known in this regard.

Another example of passive coins is ‘free coins’ that you can get through airdrops and hard forks. Airdrops is a way for projects to market themselves by giving out free coins. An example could be when a cryptocurrency project issuing their native coins to holders of Ether (ETH). Hard forks, on the other hand, represent coins that are duplicated and issued by a coin that wants to deviate or move away from an existing coin. An example is Bitcoin Cash (BCH), which separated from the main Bitcoin (BTC) chain due to differences in ideology. In that case, holders of the original BTC would automatically get an equivalent amount of BCH for free!

By holding a good portion of a passive income earner token, you will be rewarded regularly for keeping faith with the brand. As a keen investor, you want to be in a position of having a mix of risk in your portfolio ranging from high to low. A passive income earning-token is a must-have.

Recommended Holdings: 25% of Your Portfolio

  1. The Market Hedger: Stable Coins

The crypto scene is notorious for price upheavals and it is only right for you to ‘hedge’ or mitigate your risks. The likes of stablecoins such as Pax, TrueUSD , USDC, and Tether are known as stablecoins as they are tied to fiat currencies and shielded from the crazy price swings of the cryptocurrency market.

Stablecoins are a great way to protect your portfolio from volatility and provide you with much-needed liquidity (or ‘cash’) whenever you have a need. Imagine putting all of your money into cryptocurrencies and the market takes a deep dive; you would lose a major portion of your investments. It is therefore important for you to always keep a portion of your portfolio in stablecoins so that you can cash-out when needed or simply buy more cryptocurrencies when prices take a dive. This action plan will also prevent massive losses in your portfolio.

Recommended Holdings: 35% of Your Portfolio

(See also: Blockchain Scalability Solutions: Overview of Crypto Scaling Solutions)

All in All

A well-diversified portfolio goes a long way in ensuring success in the ever-evolving and volatile cryptocurrency markets. There are over 2,000 coins and tokens with varying degrees of risks and characteristics for investors to choose from. Having a balanced portfolio with all the four categories of coins could save you from lots of headache and worry. Lastly, investors should always perform thorough due diligence before investing in any coin.

(Read also: Evolution of Cryptocurrency: The Problem With Money Today)

—————

This article was contributed by Denise Quirk, a Health Advisor who is fascinated by Crypto and Blockchain Revolution. She is a believer of transforming complex information into simple, actionable content. She is keenly interested in finding the value of the crypto world. You can find her on Linkedin, Twitter and Facebook.

Beneficial Resources To Get You Started

If you’re starting your journey into the complex world of cryptocurrencies, here’s a list of useful resources and guides that will get you on your way:

Crypto portfolio, 4 types of coin, diversify crypto portfolio, manage risks, 4 Types of Coins to Diversify Your Crypto Portfolio

Trading & Exchange

Wallets

Read also: Guide on Privacy Coins: Comparison of Anonymous Cryptocurrencies and Guide To Cryptocurrency Trading Basics: Do Charts & Technical Analysis Really Work?


This represents the writer’s personal opinions and does not – in any way- constitute a recommendation of an investment or financial advice. Please assume caution when investing in cryptocurrencies and do so at your own risk, as it is extremely volatile and you can lose your money.


Enroll in our Free Cryptocurrency Webinar now to learn everything you need to know about crypto investing.

Get our exclusive e-book which will guide you on the step-by-step process to get started with making money via Cryptocurrency investments!

You can also join our Facebook group at Master The Crypto: Advanced Cryptocurrency Knowledge to ask any questions regarding cryptos!

Comments

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