Reference: How to allocate investment portfolio for brothers trading Crypto


Always tell your heart: Profit always comes with risks. It doesn't matter how much money you make, it matters how much you earn.

* The article is for reference only, not considered investment recommendations*

This is a problem that many new investors encounter when investing in Crypto. Many people lose money because they do not know how to diversify their portfolios. Warren Buffett always had a principle of immutable investment for himself: "Never put eggs in a basket" with the intention of diversifying the portfolio. Many investors put all the money they have to invest in one or two coins and expect to bring good returns but not so. Investing in the financial market in general, if you consider this a long game, you should eliminate the thoughts of losing one time because to survive for long in the financial market, forcing each individual to manage Good risk if you want to think about making a profit on the market. Imagine what happens if the other 1 coins you choose don't have luck, it can take you from 2 months to 6 year to get your capital back and it can never be removed. It is true that when diversifying the portfolio will not bring large profits, but the small stable income in the long run will bring significant amounts of money.

Let's say you choose 10 good coins and unfortunately, 3 of them have a discounted purchase, then you have the remaining coins to balance it. You will not waste time waiting for those coins to recover because you can continue trading those coins. And in my opinion, 10 coins is a reasonable amount, don't buy too little and don't buy too much.

Here's how to diversify your portfolio:

Bitcoin / Ethereum (30% - 40%)

Bitcoin and Ethereum are the two largest coins in the market today and because the capitalization of these two coins is very large, the volatility will be lower than the remaining coins and the risk is also the lowest in the market. In my opinion, you should spend 30-40% of your capital to invest in Bitcoin or Ethereum, it may not bring much profit in the short term, but given the current potential of the Crypto market, Long term promise.

Altcoins and others (60-70%)

Investing in good Altcoin projects is the fastest way for you to increase the return on your investment. The majority of altcoins are still very low and there are many potential projects that have not been discovered, so they will increase the market extremely quickly and bring profits to investors. However, investing in Altcoin we must also diversify not only invest in a certain Altcoin.

Capitalization and large volume (20% - 30%)

This type is the top 25 coins with the largest market capitalization such as NEO, Cardano, BNB, etc.These coins will have less risk and if you are a risk-less investor want to limit risks more then can increase the amount of money invested in this category. You can expect x2 x3 profits in the medium and long term.

Market capitalization and moderate volume (10-20%)

This category will include coins in the top 100 markets. These coins are moderately risky but have quite good returns. If you are a risk-taker, you can increase your investment in this category. These coins you can expect returns x5 to x10 if held long term.

Market capitalization and small volume (10%)

This is the most risky type in the market and also the most pumped and dumped coin because the capitalization and volume are so small that sharks can be easily controlled. In my opinion, if you are a risk-lover and surfing person, you can increase the amount of money invested in this category, but the best is up to 15%, do not invest more. When investing in these coins you can expect x5 x10 for a short time or higher for a long time if this is a potential project.

Intial Coin Offering (5-10%)

This one is quite different from the others. It can be said that the last months of 2017 are the booming period of ICOs, at that time you can choose a big project and earn a lot of money. But now it is no longer a pink. Investing in ICO projects is risky because all the ideas are on the page and not implemented so you can make a lot of money if the project successfully invests in your product. or you could lose all your money because the project failed or the project simply opened for fraudulent purposes and will never have a product at all. So be extremely careful with ICO projects.

The remaining types (5%)

You can win a small amount of money invested in mining platforms or multi-level lending. This is essentially a fortunate investment and to help you understand the market because the risk is very high but if your luck is also very high.

Always tell your heart: Profit always comes with risks. It doesn't matter how much money you make, it matters how much you earn.

Wishing everyone a successful investment!

See more: Important trading psychology lessons that you need to keep in mind

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