How to Build a Crypto Portfolio in 4 Easy Steps

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

By Voyager's Charlotte Siller, provided exclusively to Benzinga Cryptocurrency.

The world of crypto is calling and you’re ready to dive in, but where should you start? What’s the best way to build a solid crypto portfolio? To answer that, here are four easy steps to getting started with cryptocurrencies today.

1. Learn Crypto Investing Basics

Before adding crypto to your portfolio, you should have a clear idea of what crypto is and how it works. Cryptocurrencies are digital, decentralized currencies that live and breathe on the blockchain. The crypto movement started with the introduction of Bitcoin in January of 2009 and has flourished over the past decade, becoming a thriving asset market that brings an equal opportunity to investors.

With that in mind, how should this change your current fiat currency investment strategy? The answer is, not much. You can still do your own research to find out which cryptocurrencies are best for you. You can still invest through a broker like Voyager and, when you use the Voyager app, you can still utilize a dollar cost averaging strategy (DCA), limit orders and recurring buys to invest steadily and time the market. 

The basics of investing are pretty similar, but the difference of growth becomes apparent when you discover how much easier crypto makes it to diversify, build, and maintain a thriving portfolio.

2. Explore Different Types of Cryptocurrencies

You know about Bitcoin, but the crypto industry is so much bigger than just one asset. As of today, there are over 9,000 altcoins available on the crypto market. Altcoins are defined as any cryptocurrency that isn’t Bitcoin. 

Altcoins have added diversity to crypto offerings, creating different sectors of crypto. For example, USD Coin (USDC) is a stablecoin that is matched to the US dollar and allows you to invest while earning 9% annual rewards when you hold USDC on Voyager. Another popular sector of crypto is Decentralized Finance, or DeFi, in which networks allow for borrowing, lending, and exchanges through decentralized platforms.

Altcoins also range across a vast number of interests, from sports and gaming to entertainment — some of them even operate as partial charities or work toward environmentally sustainable goals, like Shiba Inu coin. 

3. Choose Crypto Assets According to Performance and Investment Horizon

With all of these options, where should you begin? Many start their investment journey with well-known picks, like Ethereum and Bitcoin. Both assets have been around for a while and have built a steady reputation in the market. Other altcoins may be newer or have yet to gain prominence in the market, but you can monitor assets of interest by keeping an eye on their trade volumes, market caps, and planned network upgrades. These stats will help you determine the amount of coins available for a specific asset, how they’re being traded, and their plans for the future.

Some prefer to invest and HODL (i.e., “Hold On For Dear Life,” or hold without selling) crypto assets because of market volatility. This can be beneficial on several platforms because it can allow you to earn rewards on your investments. For example, you can earn annual rewards on Voyager by holding assets like Polkadot (DOT) in the app. 

The nature of crypto allows for investors to buy assets in fractions, meaning you can buy some Bitcoin if you’re not ready to buy one whole Bitcoin, giving you more room to experiment with buying assets. Also, because the crypto market is inherently more volatile, there is almost always a chance to “buy the dip,” or purchase assets when they are at a lower value. This is how the decentralized aspect of the crypto market provides an opportunity for all.

4. Use an App to Store and Track Your Crypto Portfolio

Voyager is creating an alternative to monitoring and tracking various hot wallets and crypto platforms. On Voyager, you can store your portfolio and monitor all of your assets in real-time with just a swipe. There are currently over 60 assets to choose from, with more being added all the time, and 30+ assets offering annual rewards up to 12% when you hold the monthly minimum balance in the app. 

Trade, diversify, and begin your crypto journey with Voyager today.

About Voyager

Voyager Digital Ltd. VYGRVYGVFUCD) and its subsidiaries (“Voyager”), is one of the fastest-growing, publicly traded digital asset platforms in the United States. With over 60 digital assets, featuring a wide selection of altcoins, Voyager offers a secure way to trade using its easy-to-use mobile application. Voyager uniquely offers users the ability to earn annual rewards for maintaining a minimum balance in more than 30 different digital assets. Voyager was founded in 2018, to bring a more transparent and cost-efficient solution to trading in digital assets. Through its subsidiary Coinify ApS, Voyager provides digital asset payment solutions for both   consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com. Use code ZING during app sign up and get $50 in BTC after depositing $100 and making your first trade.

Voyager Cryptocurrency Risk Disclosure

Investment Advice Disclosure: This content is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for digital assets, sectors, or future price movement predictions.

Image by Executium on Unsplash

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.