Crypto Academy Week 7 - Homework Post for [@stream4u]: Money Management & Portfolio Management

I have always said that the correct performance of our money and portfolio of crypto assets, added to the general and specific knowledge of the market and of the financial factors immersed in the game of supply and demand thereof, is equal to success, and this is because at least I see it that way. In this post today we will talk a little about that, and about my way of seeing and managing my investment portfolio and my money.

Discussed Money Management.

Reducing the risk and seeking to obtain greater profits is what every investor in the crypto-financial world aspires, for this they must do a correct management of their money fragmentating it in several parts, with the purpose to invest and properly create their investment portfolio.

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Money management or investment capital management

With regard to money, the intelligent investor knows that his capital is precious, therefore, he breaks it down into parts that he uses for different purposes according to his personal way of investing (which is essentially given by his knowledge of financial matters, among many others. things). In this way, we can see investors who separate their capital into several parts (from 4 or 5 or more parts, up to the number of times they require), and reserve each part of their money for specific specific objectives.

Portfolio management

After that act, the smart investor (which is what I call the one who really knows what he is doing), takes portions of his divided capital and begins to invest in projects and cryptocurrencies that he has previously studied.

These cryptocurrencies can be any size of market capitalization (large, medium, small, etc.), the fundamental thing is that before investing in some of them, the investor makes fundamental and technical analyzes that give medium security or certainty that the decision Investing in such crypto assets can be a great idea.

Future plan on your Money Management.

The management of the money that I plan to make for the future is very simple, I plan to reinvest 80% of every dollar that I earn with my investments in new projects, and the remaining 20%, I keep it aside. The capital that I have right now is not large (I only have $ 500), but I am sure that well distributed and invested, it will allow myself to achieve great goals that I've set for myself in the financial world.

To be more specific, the remaining 20%, of my earnings, I plan to leave it for projects in the real world, since I want to set up a fast food stand in my city.

Since I earn a salary for my current real-world job, I can afford to manage 100% of my $ 500 capital in that way, that is, reserving everything for investment, hoping that it will multiply a lot in a certain period.

In fact, it is not unreasonable to say that I plan to take 15% of my current salary, to add it to my investment capital so that it increases more and more and gives me greater freedom of action when investing.

Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.

When creating our portfolio of crypto assets, it is convenient to diversify a little, that is, I think that we must have a number of cryptocurrencies that we know well (say about 10 or 15 of them) and finally invest in them. Regardless of the amount of cryptocurrencies in which we choose to invest, what we must be aware of is that they shoulden't be to much not more than those that we can humanly attend to, especially, if we are investing for trading.

I set myself a personal goal in my portfolio, to have a maximum limit of 15 crypto assets in which to invest, but for now, I have barely a third of that cap covered.

In other words, my portfolio is currently only made up of 5 crypto assets, all of them large capitalization. I just have a little of BTC, LTC, ADA, DOT, and UNI. You may wonder why I only invest in projects with the highest capitalization at the moment, knowing that these crypto assets are characterized by giving lower rates of return when compared to projects with lower capitalization; The answer is that because my investment capital is very low, I have decided to minimize the risks, even knowing that this will bring me lower ROI rates.

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Future plan on your Portfolio Management.

As a future plan for my investment portfolio what I want to do is as I already mentioned, bring the number of assets in which I invest to 15. Given that already 5 high-capitalization assets make up my portfolio, I would like to buy other 10 assets on this way: 3 mid-cap and 7 small cap to fulfill my plan.

My intention in the future is that these small capitalization tokens in which I will decide to invest, are approximately in the top 300-400 per capitalization market, and preferably, whose value is just pennies, to be able to acquire a good amount of they.

When was the last investment failed and Why? (those who have experienced this can provide views).

I haven't experienced failed investments yet, but I guess it's because I'm still very new to crypto investing. Now, in trading, I did lose some money once by buying a cryptocurrency called XLM (Stellar) like crazy, the reason was that I started to buy it without knowing anything about technical analysis at that time (only because I saw it going up a lot around those days) and crashed the price by that time. I ended up losing around $ 70 in the process.

As I said, I don't know if that it can be considered an investment or not, because it was not in hold that I lost the money, but in trading, anyway I mention it just in case. As a famous person once said: "Experience is the name we give to our failures" .... I guess that's very true.

Conclusion.

It is well known that when a portfolio and the money that is invested in the crypto assets that make it up are well managed, it can be said that the sky is the limit of the profits that can be obtained.

That is my hope for the future of my investments; In addition, I aspire through all the valuable knowledge that week after week I acquire in the Steemit Crypto Academy, to become a better investor in every way.

I keep reading about the crypto sphere day after day, I keep reading about trading, I keep reading about economics, finance and investments and I am very sure that this will give me sooner rather than later, good results in everything that I am projecting and doing.

Well, this is my participation in the Crypto Academy, in this week 7, and doing this task for @stream4u (India). Until next time!