How should a trader build their investment portfolio?

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paul2016Member
Posts: 22 · Reputation: 110
#1Sep 25, 2024, 10:23 PM
The crypto market is packed with chances to make money, and it just keeps growing. New people are joining every day. Some of these folks are only in it for the profits and don’t really grasp the risks, while others know what they’re getting into and are ready to take smart risks. These are the traders who want to improve every day. They look for tips from seasoned traders and learn from their own mistakes. When it comes to investing, they want to plan it out right. They’re curious about how to spread their investments around and how much to put into each part of their portfolio. For those of you who have been in this game for a while, what kind of advice would you share? What’s the best way to handle investments?
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jake_gweiSenior Member
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#2Sep 26, 2024, 03:06 AM
trader and investor are different. trader doesn't have portfolio because they trade, they don't hold for long, investor on the other hand build portfolio, you won't do good having advice from trader either, since they usually trade on lower timeframe, while investing sometime mean yearly holding. I as a trader as well, won't have idea which coin gonna do well in the next few years, because that's not on our analysis. probably the only advice that's good is to buy when RSI shows oversold and price already gone too low.
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raven_2014Full Member
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#3Sep 26, 2024, 07:45 AM
Yea it's very true that traders and investors are not the same, they actually have a different mindset no doubt, but thinking that no trader can give him a valuable advice is what I disagree on. In as much as traders enjoy what they do because they make quick money and they are not patient enough to buy an hold, I can confirm to you that most trader aren't blind in knowledge on what it entails to invest in Bitcoin and any other cryptocurrency. Though I am not a big fan of alt and meme coin, I am a trader but I also have some coin I am holding, but like 90% of my portfolio is in Bitcoin, The other of other 10% is between dogwif, popcat and pepe. It's just about interest because I know like few people that are traders, but they still have like few coin they are holding, then talking about a perfect portfolio, I don't actually think their is a perfect portfolio in this crypto space, it's either you invest in Bitcoin or you take a  calculated risk because nothing is certain with alt or meme coin.
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cobr4404Full Member
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#4Sep 26, 2024, 10:45 AM
I don't believe that ALL traders don't have any portfolio at all. What I believe is that they have funds intended for trading, and they also have funds for holding as well. I also trade (not an expert though), but I still hold some coins just for capital appreciation because I don't want to risk all of my money into trading since we know how risky it is. As for the RSI thing, thanks for sharing as well as it would help newbies like us in our trading journey. Investing and trading are 2 different things like what the above posts said, and I don't also think that I'm in a position where I need to give some advice to these traders about investing because as much as I believe that traders doesn't have any investment portfolio that they're holding in long term, I still believe there are some who has just for safety purposes if things go south. I also believe that these traders know how to make better decisions when it comes to investing.
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vault_2009Full Member
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#5Sep 26, 2024, 04:44 PM
Traders' investment portfolio must be having more risky instruments compared to what an investor tries to trade, lol. I do see even aggressive traders do have investment portfolio but I am not sure that they plan up for long term like a typical investors do. Investment just needs your knowledge which is completely different from the skill set of a trader. You need to study all the fundamentals also for a perfect entry you need to check short term technical analysis as well. For example, to catch bitcoin below $20k level in 2023, you need to understand bitcoin's fundamental and cyclic nature here technical analysis might get you chances to average more around $20k to 25k levels. Traders' investment might focus on short term plans but such instruments are coming up with more risks. To eliminate risks, we can simply go for long term; this way bitcoin must be a the only one instrument needed for both traders and investors in their portfolio.
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#6Sep 26, 2024, 06:42 PM
Let me respond to you in a trading aspect, because I know that traders are different from investors. As a trader you must settle down first to learn all the basics elements of trading for you to have the knowledge on how traders use to make income from trading without experience losses at the end. Even though you want to take a high risk on  trading your Bitcoin, let it be in the bullish season, because that is the season both new traders and old traders use to increase their income likewise investors too, because the both purchase coins in the bearish Season and hold for a long term before they can release their coins to embrace their target. This is my advice to all newbies, don't plan without having the knowledge of what you are planning to do in the bearish season or bullish season, because the knowledge is just like a light that will show you road to your success.
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calmomegaSenior Member
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#7Sep 26, 2024, 11:09 PM
Isn't that up to the traders themselves personally? Like at most I'd say to diversify, but how much or how little highly depends on what the trader thinks of the assets they're currently trading with. For investments it varies really, getting the top ones usually isn't wrong but if you want to profit more, gotta take a lot more risks as well as a bunch of research to possibly minimize that risk. Other than that I'd say it's closer to just trial and error imo. Trading WILL lose you money, that's for sure. Just a matter of how much before you can learn what works and what doesn't.
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hodler_b34rFull Member
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#8Sep 28, 2024, 06:15 AM
Do you know what is wrong with your topic and question? Traders are not investors and investors are not traders. Traders want active tradings with their capital and investors don't want to be actively with trading, they focus on holding and let the market passively brings profit to their investment portfolios. Traders have big challenge in themselves to manage their capital like a half split or whatever split of capital for trading and invesment. Most traders will turn their investment part to trading capital after all.
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BasedGasHero Member
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#9Sep 29, 2024, 07:51 AM
There is no magical strategy that will work for everyone, it depends on every individual based on lots of variables such as how much capital they have, how much they are willing to lose, can they choose risky strategies and willing to make big or nothing? For example someone invested hundreds on random coins and made millions overnight, while there are thousands others tried and failed.
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DarkByteFull Member
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#10Sep 29, 2024, 09:43 AM
A trader giving advice to others about investing is a bit of a no brainer, maybe the trader will teach how to trade with their strategy. As for investors, just buy bitcoin and HODL it's done. Continue accumulating if you want to increase your portfolio. Maybe some traders will diversify their assets for long-term investment, but their main focus will be on trading and this is quite risky.
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d4rk5tackSenior Member
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#11Sep 29, 2024, 10:12 AM
The thing is there are many trades who started as just investors then added spot trading then went ahead to start future trading, most of these traders are very qualified to actually advice anyone to invest. Trading most especially spots isn’t only about technical analysis skills but very much requires the knowledge of Fundamentals, this fundamentals is what investors uses as an edge to have better investing knowledge than traders so when a trader combines this two skills he is on par to be both investor and a trader So for OP I usually say this your best bet to getting maximum profit as a trader is to invest most of your profits made from trading so that you can minimize the risk of losing if the trading goes bad sometimes. The portfolio ratio depends on your preference, but my strategy is to have 75% been in bitcoin then 15% in top ten coins base on market cap and then 10% on section preferences like AI, RWA, Depin, Memecoins and Gamefi
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CalmLedgerSenior Member
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#12Sep 29, 2024, 12:00 PM
If they choose to use Bitcoin as their investment, I will suggest them to use DCA method to start. They can buy using schedule so they will not miss the time to buy Bitcoin for some term. But they need to allocate the money that they will use to invest in Bitcoin and not mix that with their daily needs. But before they start the investment, they must learn how to be a good investor and have a strong hand to hodl Bitcoin. But trader and investor is different so you must know about that. Traders search for the profit in a short term and middle term but they can also search for a long term profit if they turn to be the investor.
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pixel_cobraFull Member
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#13Sep 29, 2024, 01:35 PM
The advice we usually see here is that your portfolio should have BTC as your priority in your investment, 80% if you are also interested in altcoins. from what I have read the old users were saying at least ETH as the 2nd largest percentage in your portfolio. As for me, I would keep some L1 projects just to get big profits, especially in the bull season. You won't lose money in bullo season when you only take the top tokens to be among in your portfolio.
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#14Sep 29, 2024, 04:43 PM
Listed on coinmarketcap and or coingecko, there are so many crypto coins/tokens. Not all crypto coins/tokens are listed on reputable exchanges or exchanges used by their users. Opportunities and profits are only obtained by those who have been in or active in trading and investing for a long time. Find the definition of trading and investing yourself so that the meaning of opportunities and profits in the two types of words can be obtained because of experience and knowledge. Not everyone can get profit from trading and investing because they do not know which coins have profitable opportunities.
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k3vin4peSenior Member
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#15Sep 29, 2024, 09:56 PM
The only way of making consistent profit from the crypto market and minimizing lose is to have a solid knowledge about the market and knowing the risk that is involved and how to manage the risk and reduce your rate of losses. The market is very volatile and dynamic and no matter the strategies a trader is using, there will always be losses but the ability to understand minimize  those losses is what can make the trader successful on the long run.
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dan420Member
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#16Sep 29, 2024, 11:11 PM
People who are not ready for the risks of trading should not stay in the market for too long and this does not only include the crypto market, but also other markets because every trade always has a risk involved. So for those who only like profits but do not like risks, it is better not to stay in any market too often, unless they are willing to seek more knowledge from people who are already experienced enough in any trading field. As for the best investment, everyone can choose it based on the perspective they already know before they take one or several assets that they believe are good for the future and you must also be able to separate it from trading. Because not all investment assets must be traded in the market, which means that there are also investment assets that are more suitable to be stored after being purchased in any amount so that you do not need to consider trading them regularly because there are still other options that are also suitable for you to trade in the market for short-term profits.
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ColdHashFull Member
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#17Sep 30, 2024, 03:13 AM
Trading is very risky and not for people who are planning for their retirement, because whatever strategy a trader comes up with, he will run at loss in the long run. This is because a little mistake can make you lose all the profits that you have made for long in one trade. An investor is that person who is buying bitcoin regularly weekly or monthly to grow his bitcoin stash and hodli for long. Investing is more easier than trading with low risk.
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matrix365Senior Member
Posts: 184 · Reputation: 1104
#18Sep 30, 2024, 04:59 AM
Trading is not most favorite choice of the elderly who want something safe because if they make mistake, lose money, they will not be able to work and get more money to recover from it. The elderly are different than the young, who have a lot of time, and strength to work for fixing their mistakes. Consequently trading is not for the elderly and they will look for something safer like investment into pension hedge fund for example. It's can be one of explanations on Bitcoin and cryptocurrency demographics that are very skewed to the young, because the elderly don't like Bitcoin and cryptocurrency as in their view, these things are too volatile and risky.
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gigasatMember
Posts: 22 · Reputation: 141
#19Sep 30, 2024, 09:56 AM
Yes the crypto market is filled with opportunities, but you need to know your risk tolerance to be able to achieve something and don't be greedy. You can start with initiatives that are almost risk free like this>>Bg auto invest programme before going for more rewarding methods like trading(have knowledge first. Buddy, trading needs discipline and intense patience. Without that, you cant be a successful trader. Op can also look about staking, launchpools etc.
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laser404Member
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#20Sep 30, 2024, 10:19 AM
Both advice I will give to a crypto trader and investor is staying smart and patient even when the market is difficult to predict. Both trade and investing can be done by an investor but it’s kinda difficult for those who still don’t know the system and there’s still a long way to go, without experience it’s a most knowledge is needed even if it’s the least which involves learning and practicing. To be honest I will prefer investing because trade is risky even with the necessary requirements there’s no guarantee you’ll succeed definitely traders who perform nicely while trading don’t get it all the time.
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