Cryptocurrency portfolio - a reasonable and profitable investment

Asset selection

In drawing up the investment portfolio, our specialists take into account the means at their disposal, the investment period and the desired profit. This allows you to distribute assets as intelligently as possible, manage possible risks and receive a steady income.

Cryptocurrencies included in the portfolio can be divided into 4 main groups:

The most popular and popular. The world's first digital coin, Bitcoin, leads the way. It also includes other coins that have maximum support. The chance that this electronic money will "burst" is minimal. To ensure the balance of the portfolio, our experts invest not only in Bitcoin, but also in other top ten assets (Ethereum, Ripple, Dash, Litecoin, etc.). Popular cryptocurrencies account for approximately 50%.

Possessing their own unique concept. This is digital money, which is supported by its sought-after idea. They rise in price not too fast, but stable. This group includes such currencies as NEO (as anonymous as possible), DOGI and DGB (used for sponsorship projects), etc. The share of these assets in the portfolio is about 30%, for each item accounts for 3-5%.

Forks. These are coins that literally soar in price after release, but can fall just as quickly. Predictions about their success can be found on any exchange. It is necessary to invest in such assets no more than 20% of the total amount, and each coin should account for no more than 2%.

ICO projects. Purchase of cryptocurrency at the ICO stage is the most risky undertaking. The project may turn out to be both super profitable and the usual “bubble” that will burst. In the case of a successful outcome, the investor can make a profit of 10-100 fold. In this direction should invest no more than 10% of the portfolio.

Litecoin (LTC)

Digital currency launched in 2011. It was supposed to be the main competitive Bitcoin, and unofficially received the title of "digital silver". The developers have tried to improve the technical qualities of the world's first cryptocurrency, however, some innovations are quite controversial. Litecoin works on the same principles as the vast majority of other cryptocurrencies: accessibility, decentralization, anonymity, and publicity.

Ethereum (ETH)

Digital currency appeared in 2015, developed on the basis of the blockchain. A feature of Ethereum is work on the basis of smart contracts.

They completely “control” the execution of transactions and ensure that participants fulfill all agreed conditions.

Ripple (XRP)

The launch of the project took place in 2012. This is a decentralized platform for payment systems where you can exchange currencies. The possibility of making back payments is not provided. A distinctive feature of the project is the concess register.

Ethereum Classic (ETC)

The platform runs programs on public nodes of the network, works on the basis of open source smart contracts. ETC cryptocurrency can be transferred from one network participant to another, used to pay for calculations made by public network nodes. You can also create your own tokens (digital assets) based on Ethereum Classic.

Dash (DASH)

Cryptocurrency provides maximum anonymity of payments. With its help, you can make instant and private payment on the Internet and in the real world. This feature is provided by open source software. The software runs on a platform supported by thousands of users worldwide.

NXT (NXT)

Cryptocurrency, which is a means of payment on the platform of the same name. Network decentralized cryptoplatform is designed to run secure decentralized applications, such as instant messengers, electronic payment systems, trading platforms, etc. Works on the principle of PoS (Proof-of-Stake) - proof of storage of user funds for a certain period.

GameCredits (GAME)

The first in the world of cryptocurrency, created specifically for gamers. It is based on the bitcoin blockchain, because it is mined in the same way as the most popular digital coin in the world - with the help of mining. GAME coins can be used by players to pay for goods in online games. Regular users can use the cryptocurrency to purchase applications on the MobileGo platform (similar to the Play Market and the App Store).

Stellar Lumens (XLM)

Cryptocurrency launched in 2014 on a platform designed for foreign exchange transactions. This platform works in real time, it is an offshoot of Ripple. In October last year, the company announced a collaboration with IBM, and in 2018 its platform became the fastest growing in the ICO area. After Ethereum, Stellar Lumens ranks second in the number of ICOs conducted.

NEM (NEM)

The second generation cryptocurrency, which was created in 2015. It is written in JavaScript and Java. The coin is socially oriented, it adheres to the philosophy of financial freedom, decentralization and equality of financial opportunities. The NEM blockchain is formed using the Proof-of-Importance algorithm, which takes into account the three main characteristics of the account: the balance of the wallet, its activity in the network (the number of transactions), the time spent in the network.

Bitcoin is a decentralized digital currency of the peer-to-peer payment system of the same name, where users conduct operations independently, without centralized control and intermediaries.
Blockchain is a digital registry with shared access, where all transactions in Bitcoins or other cryptocurrencies are recorded in chronological order.
The Bitcoin network is based on a public collective register called the blockchain. All transactions ever recorded are recorded in the blockchain, so that the user's computer can confirm the validity of any transaction. The reliability of each transaction is confirmed by a corresponding digital signature, correlated with the address of the sender, which allows all users to fully control the sending of bitcoins from their own bitcoin addresses. In addition, everyone can process transactions using specialized hardware resources of the computer, receiving bitcoins for it as a reward. This process is called "mining".
Mining is the process of using the computing power of a computer to provide protection against the re-use of the same bitcoins in different transactions and to generate new bitcoins in the system. From a technical point of view, mining is the calculation of a hash from a block header, which includes, among other things, a reference to a previous block, a hash of a set of transactions, and a nonce (a random number used once for authentication purposes).
Most often, Bitcoin buy cryptocurrency on Bitcoin exchanges, you can also buy it directly from Bitcoin holders - through trading platforms and online auctions. Payment options are very different - cash, credit and debit cards, wire transfer or even other cryptocurrency.
Such a “wallet” in the Bitcoin system is essentially equivalent to a bank account. With it, you can receive bitcoins, store them, send them to others. There are two main types of such wallets - software and web. A software wallet is a wallet that you install on your computer or mobile device. You have complete control over ensuring its security, but sometimes there are problems associated with the installation process and supporting its operation. A web wallet is a wallet hosted with a third party. They are often much easier to use, but you must be sure that the hosting provider (hoster) can provide adequate protection for your funds. What determines the rate of cryptocurrency. For most of the 20th century, fiat currencies were secured in gold. However, the era of the gold exchange standard ended in 1971. From that moment on, fiat currencies went into “free floating”.