Turbulent times require a different approach to your crypto portfolio

Delta crypto portfolio
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We all know that the crypto market is volatile. However, looking at the longer-term trends, we could see a strong upward potential for crypto. With the rise of inflation concerns, crypto has taken a beat. We see this across the market and not limited to crypto alone. For investors, it is important to re-evaluate their portfolios. How future-proof is your current portfolio? How can you make sure that your portfolio is making gains, also in these challenging times? In this article, we will dive into the best approach to setting up a crypto portfolio in a volatile market.

Try to pursue a core-satellite strategy

The core-satellite approach is typically used in the stock market. It refers to having a solid core that is diversified combined with more focused satellites. For example, you could have a large index fund (e.g., MSCi World) as a core combined with pockets of technology, oil, and car manufacturer stocks.

How to find satellites

The satellites should be determined by your research and personal experience. For example, if you are knowledgeable about the oil and gas industry, it might make sense to buy individual stocks in that field. Next to that, you can also determine the best stocks based on personal preference. The key takeaway from selecting a satellite is that it requires research. Once you have purchased the stocks, they also require you to follow the news and updates regarding the industry and company.

Satellites need to outperform

To make this approach profitable, the satellites need to outperform the core. Without this principle, there is no use in investing in satellites as it is better to use a diversified index fund that requires minimum effort from your side.

Relating the approach to crypto

With a volatile crypto market, you can use this strategy and become more inflation-proof. For example, you can select a strong core of large crypto assets such as Ethereum and Bitcoin. Then, you can select satellites that will help you gain more over time. The balance between the two is determined by the volatility of the market. Generally, it is safer to have a higher percentage in the core. On the other hand, earnings might be high when selecting specific satellites. Do your research and select the satellites with care.

Leverage a crypto tracker

To see if you are on track with the core-satellite approach, you can use a crypto tracker. This is an application that reflects your holdings across crypto assets. You can categorize them according to your needs, allowing you to reflect on the performance of clusters. In this way, you can see if satellites outperform the core. When this is not the case, it makes sense to reconsider your satellite.

Learn more about tracking technology

Want to learn more about tracking your crypto and other assets? Visit the website of Delta, a leading provider of tracking technology. The company is combining real-time insights in prices with market news, crypto performance, integration with wallets and exchanges, and more. On their website, you find more information about the features and what such a tracker can bring to your portfolio.

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