How To Evaluate Your Crypto Portfolio In 3 Easy Steps

Do you have quite a few cryptocurrency investments to your name? Have you sunk a fair share of time and money into the cryptocurrency market, and have quite a few stories about both being stung and walking away with a pretty good payout? 

Then now’s the perfect time for you to actually sit and review your crypto portfolio as it currently stands. And we’re here to help you do so in three easy steps; check them out down below. 

How Many Risk Levels are You Working with?

You never want to put everything into just the one risk level, and carry only low risk investments or high risk investments all at once. 

If you do, there’s a chance your portfolio will never actually make any serious ‘gains’, or you may lose it all in the space of 5 minutes on a random Wednesday afternoon. 

That’s the problem with any investment portfolio you could put together, but in the crypto world, there’s a much higher chance of the latter occurring when you least expect it. 

So, when you look over your portfolio and see only extreme volatility anywhere you look, you may want to dial back and start rearranging where you put your weekly top ups. 

Look at Your Liquidity

Everyone wants to hold crypto assets that have both the reputation and the valuation that every investor dreams of. 

If you’ve got some stable Bitcoins in your wallet, you know for a fact that you’re holding a better chance for long term profit than someone who’s playing around with new coins that just cropped up yesterday. 

However, access to these bigger and better coins can be limited, and that’s where liquidity becomes something else that can lead to a sting. 

Liquidity is the kind of metric you keep an eye on in the background, but it’s also something you need to have central to your ongoing investment plan. 

You need to know that the coins you’re putting your money into have a good chance to trade when you need to, and that it won’t be too difficult to find someone willing to buy them from you. 

And if you find that your current portfolio features predominantly low level, low liquidity holdings, you may want to try out crypto market making to put you in touch with a larger portion of buyers. 

How Hard Would it Be to Resist an Emotional Decision?

This is another way to determine the risk you’re working with – just on a much more sentimental level. Because no one walks into crypto investment without being worried they’re going to lose it all.

If you’ve constantly got an eye on your crypto wallet, and you’ve made quite a few panicked trades in the past, there’s a chance your portfolio doesn’t make you all that happy. If so, you may want to think about investing less in volatility here. 

Got a crypto investment portfolio? Look at your risk, liquidity, and how anxious it could make you.