Tricks for a diversified wallet of cryptocurrency

Regarding digital assets, in the same way as for any other activity based on speculation, the risks are very real because of the considerable volatility of digital currency.

Yet, because of this strong motion of the market, and as recommend by all the financial advisers, whatever the type of currencies is concerned, an investment in the long term is deeply recommended. It will be very difficult, indeed, to hope to obtain remunerations in the short or medium term. Thus, never forget the golden rule of fluctuating activities: invest only what you can afford to lose.

Apart from a regular follow-up of the market and a certain sense of anticipation, the key of the success will also be the choice of the broadening of your wallet.

Identify your objectives and your needs

To have a stable and promising wallet, it is necessary to understand how to maximise its potential gains, while limiting its possible losses. It is then important to find the just balance to optimise at best your investments. For that purpose, you have to ask yourself two essential questions.

At which rate will you be capable of consulting the market? The more you will intervene regularly on your assets and better can be your analysis of convenient periods to invest or to withdraw.

How much do you wish to invest in first? If your budget does not exceed 12,000 to 18,000 XPF, it is not essential for you to try to scatter your cryptocurrencies: the fluctuations of values will be too low to be significant with regard to your global profits. The experts consider useful to diversify from 60,000 XPF as an initial capital.

Identify the variations of cash flow

The cash flow ratio of an asset will correspond to the duration of resale. To remain interested in the performance of the various cryptocurrencies is therefore essential to anticipate the likely setbacks of the market and the moments when you will have to know how to change currencies, in particular when one of them is about to collapse.

Several tools of follow-up online can synthesise the evolution and the current events of digital assets. A filtering system is generally existing by date or by period, as well as a display of historical data and spreading of the market.

Some of them also allow to make speculative simulations to show you your rate of profitability, according to the profile of your wallet and the foreign exchange rate.

Determine the ideal ratio of your wallet

The majority of the wallets of cryptocurrencies is divided into three categories of currencies:

  • those at low risk: the Bitcoin is positioned here as a standard of reference, the strongest on the market
  • those at average risk: Altcoins* (an alternative to Bitcoins) in strong stock market capitalisation
  • those with high risk: they are the other assets durably settled, but the evolution of which remains uncertain (ICO or less popular Altcoins*)

* Beware however on the numerous scams connected to Altcoins. To learn to identify them correctly, follow one of our modules of training.

The most coherent ratio is then of the order of 50 % / 30 % / 20 % with the maximum of units concerning the first category.

A last point of vigilance will be the sake-keeping of your e-money, the best way being, of course, to store it offline to protect you against any hacking attempts. Nevertheless, if you have to turn to an online solution, watch out not to keep all your cryptocurrencies on one and unique platform.

Ledger Nano S - The secure hardware wallet