Sign in Subscribe

Crypto Portfolio Example: Tokens, Allocation, Diversification and Long-Term Orientation

Crypto Portfolio Example: Tokens, Allocation, Diversification and Long-Term Orientation

If you haven't done so already, please visit normalwallet.io and create an account. Are you seeking guidance, Q&A sessions, and a supportive crypto community? Join our Discord Normal Community!

At Normal, we strive to liberate individuals from the confines of traditional corporate lifestyles by empowering financial freedom through revolutionary services such as "Decentralized Finance" (DeFi). If you require more information on Normal, DeFi, cryptocurrencies, or blockchain technology, we invite you to explore our informative blog articles.

Now, let's delve into today's topic: an exemplary portfolio showcasing a robust and diversified cryptocurrency investment strategy!

Example Cryptocurrency Portfolio

Constructing a sound investment portfolio requires a long-term perspective and a value-oriented approach, complemented by a disciplined dollar-cost-averaging strategy.

  1. Bitcoin (BTC) - Current Price: $30,346 - Recommended Portfolio Allocation: 25-50%

Bitcoin is a groundbreaking digital currency and software protocol that has revolutionized global monetary systems. It offers a secure and universally accepted store of value. [1]

  1. Ethereum (ETH) - Current Price: $1,869 - Recommended Portfolio Allocation: 5.55-8.33%

Ethereum is an open-source decentralized blockchain platform, serving as the foundation for various cryptocurrencies and facilitating the execution of smart contracts. [2]

  1. Solana (SOL) - Current Price: $22 - Recommended Portfolio Allocation: 5.55-8.33%

Solana is a highly functional open-source blockchain project that leverages the permissionless nature of blockchain technology to provide decentralized finance (DeFi) solutions. Officially launched in March 2020 by the Solana Foundation, it has its headquarters in Geneva, Switzerland. [3]

  1. Avalanche (AVAX) - Current Price: $13.37 - Recommended Portfolio Allocation: 5.55-8.33%

Avalanche is a layer one blockchain platform designed for decentralized applications and custom blockchain networks. It aims to challenge Ethereum's dominance by offering higher transaction output (up to 6,500 transactions per second) without compromising scalability. [4]

  1. Polygon (MATIC) - Current Price: $0.74 - Recommended Portfolio Allocation: 5.55-8.33%

Polygon (MATIC) is a user-friendly and well-designed platform that facilitates the development of Ethereum-based applications. [5]

  1. Chainlink (LINK) - Current Price: $6.17 - Recommended Portfolio Allocation: 5.55-8.33%

Chainlink, established in 2017, functions as a blockchain abstraction layer, connecting smart contracts to external data feeds, events, and payment methods through a decentralized oracle network. It enhances the capabilities of complex smart contracts, enabling them to become the predominant form of digital agreement. [6]

  1. Aave (AAVE) - Current Price: $60.1 - Recommended Portfolio Allocation: 5.55-8.33%

Aave is a decentralized finance protocol that allows users to lend and borrow cryptocurrencies. [7]

  1. Stacks (STX) - Current Price: $0.308 - Recommended Portfolio Allocation: 5.55-8.33%

Stacks is a layer-1 blockchain solution designed to enable smart contracts and decentralized applications (DApps) on the Bitcoin (BTC) network while preserving the security and stability of Bitcoin's core features. [8]

  1. SushiSwap (SUSHI) - Current Price: $1.139 - Recommended Portfolio Allocation: 5.55-8.33%

SushiSwap represents an example of an automated market maker (AMM), a decentralized exchange utilizing smart contracts to create liquidity pools for various token pairs. [9]

  1. Polkadot (DOT) - Current Price: $5.125 - Recommended Portfolio Allocation: 5.55-8.33%

Polkadot is an open-source, sharded multichain protocol that facilitates the secure transfer of data and assets across specialized blockchains, enabling interoperability between different blockchain networks. It serves as a foundational element for the decentralized internet of blockchains, commonly known as Web3. [10]

Summary

We hope this example portfolio has provided you with insights into building a successful investment strategy within the cryptocurrency market. To ask questions or deepen your understanding, we invite you to join our vibrant community on Discord, where we support each other on our crypto investment journeys.

Join the revolution today!

‍

Best regards,

Team Normal

‍

---

‍

Sources
  1. Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. 
  2. Wood, G. (2014). Ethereum: A Secure Decentralized Generalized Transaction Ledger. Ethereum Project
  3. Yakovenko, A. (2020) Solana - A new architecture for a high performance blockchain
  4. Buttolph, S., Moin, A., Sekniqi, K., Sirer, E. G. Avalanche (2020) - The Internet of Finance
  5. Polygon - Ethereum's Internet of Blockchains
  6. Chainlink - Connect Smart Contracts to External Data and APIs.
  7. Aave - Open Source DeFi Protocol for Money Markets.
  8. Stacks - Bringing Smart Contracts and DeFi to Bitcoin.
  9. SushiSwap - The Sushi Community.
  10. Polkadot - Heterogeneous Multi-Chain Technology.