I Show You One of My Methods That Helped Me To Make $1,006 From $100, Then $257,000 From $1,006 With Bitcoin And Cryptocurrencies:
In this e-mail, I introduce You the 1st field, where I invested my money separated for cryptocurrencies.
Creating index tracking crypto portfolio
I show You how did I create an index tracking crypto portfolio. Do not worry if You are completely beginner in this topic, You will understand everything, because I will explain You everything.
Just like in any other businesses, it is very important in case of cryptocurrencies to minimize the risks.
Therefore, I invested my money to the 3 main fields of the world of cryptocurrencies, significantly lowering the risks. The total amount spent on the crypto business is the 30% of my savings. I never invest my complete cash or use bank loans, this is my principle!
I invested the 60% of my money separated for cryptocurrencies into Index Tracking Crypto Portfolio.
Many plan to buy Bitcoins from their complete savings, and keep them for years, then sell when achieving the desired exchange rate gain.
This is a very bad idea, due to the following reasons:
It is very risky to keep your money only in Bitcoin. What happens, if the exchange rate falls down for a very long period of time etc.
Sometimes an altcoin (the summary name of cryptocurrencies other than Bitcoin) grow much quicker than Bitcoin.
The main benefits of index tracking crypto portfolio:
You are not depending on only 1 coin.
The risk is diversified between more coins.
You can cover the majority of the complete market capitalization with your portfolio. The marker capitalization means the value of a coin specified by all investors.
In certain cases, You can gain much more profit than buying only Bitcoins.
I show You how did I create my index tracking crypto portfolio.
When creating an index tracking portfolio, the most important is that the portfolio shall cover the majority of the market capitalization.
As the first step, I visited the coinmarketcap.com site, where You can find the market capitalization of each coin, as well as the capitalization of the entire crypto market:
You can clearly see the complete market capitalization on the image, which is currently the following (as of the date when I made this study):
You can see the market capitalization of each coin.
Bitcoin is currently at:
These two numbers will be important later.
I take only the first 10 coins into consideration.
I select those from the first 10, which are older than 3 years. This is very important, because You can often find a new coin, whose price is artificially hyped, then it disappears from the market (pump and dump).
Currently, these coins match the conditions:
Now I calculate, how many percents of the complete market capitalization does the actual coin take.
In case of Bitcoin:
(Bitcoin’s market capitalization / Complete market capitalization) x 100
(69.697.169.475 / 137.398.323.250) x 100 = 50.72%
I made this calculation to every selected coin.
Then I buy each coin in this proportion. So I buy Bitcoin from the 50.72% of my money and so on. Since only 5 coins passed the filter, some percents remained in the end, that I proportionally distribute between the 5 coins.
I monthly balance my portfolio, which means that I do the same steps, and modify the distribution of my money between the coins according to the new figures.
I could cover the majority of the capitalization of the quality coins with my portfolio. Now it is sure, that my risk is much lower and I do not depend on 1 coin, and if any of the coins raise much, I can realize extra profit.
Where can I buy Bitcoin and altcoins for really good prices:
I use the Binance cryptocurrency exchanger, I am really satisfied with it, because they always sell Bitcoin for a fair price, and the transaction cost is as low as 0.1%.
Where can I store my purchased coins:
In the next e-mail, I am going to tell You how You can store your Bitcoin and cryptocurrencies safe and secure.