How to Grow Your Crypto Portfolio: Complete Guide

Bitcoin Prime

Balancing a crypto portfolio is not that hard. However, you have to consider some crucial factors. If you are new at investing in cryptocurrency, you have to be careful while balancing your portfolio. 

You see, a crypto portfolio is quite similar to an investment portfolio. That’s why you can reduce the overall risk as per preference. Still, there are so many things you have to know before using Bitcoin Prime for investment. 

In this guide, we will cover how to build a crypto portfolio. If you are a beginner, this guide will be very helpful. You will also know about the type of cryptocurrencies and portfolio diversifying. 

What is a Crypto Portfolio?

In simple words, a crypto portfolio is a collection of different cryptocurrencies that are invested by a trader. You might know that a portfolio includes different types of assets. As we noted before, it’s quite similar to a traditional investment portfolio. 

That means you can track your portfolio with a spreadsheet. Moreover, you can also track your investment by using a tracking tool. Make sure you choose a reliable one. 

Diversifying a Crypto Portfolio

Asset diversification is a common term when it comes to building an investment portfolio. In simple words, asset diversification means investing in different sectors or assets. The same goes for cryptocurrencies. In the following list, we will share the common cryptocurrencies you can invest in for your crypto portfolio. 

  • Bitcoin

Introduced in 2009, Bitcoin is the pioneer of the crypto world. Hence, it’s the most popular digital currency right now with a market cap of around $1 trillion. Most newbie traders prefer Bitcoin over other cryptocurrencies. 

According to a reliable source, there are around 18.8 million tokens in crypto circulation. As a newbie, you have to start your crypto investment journey with Bitcoin.  

  • Ethereum

Now, you can’t build a crypto portfolio only with Bitcoin. To diversify your portfolio, you have to add some alternatives too. In this case, Ethereum can be the ideal alternative to Bitcoin. 

Ethereum is quite popular in the digital world with a market cap of $400 billion. Hence, many people claim that it’s wiser to choose Ethereum instead of Bitcoin. 

  • Dogecoin

Launched in 2013, Dogecoin’s initial goal was to make fun of Bitcoin. However, the performance of this cryptocurrency was quite impressive last year. Dogecoin has a market cap of $33 billion.

Hence, it’s a good option if you want to diversify your crypto portfolio. The best thing is Dogecoin is quite similar to Ethereum and Bitcoin. 

  • Cardano

Created by Charles Hoskinson and Jeremy Wood in 2017, Cardano can be a good inclusion in your crypto portfolio. As Charles Hoskinson is the co-founder of Ethereum, you can find many similarities between these two digital currencies.

Many investors use Cardano. Hence, this cryptocurrency is getting popular as it has a market cap of $71 billion.

Types of Cryptocurrencies

If you are a beginner, you have to include different types of cryptocurrencies in your crypto portfolio. Let’s find out the types of digital currencies in the following:

  •  Payment Coins

You see, payment coins are essential when we are talking about a well-balanced crypto profile. Hence, it will be your primary asset. Bitcoin is the biggest example of payment coins. 

However, you can also try some other digital currencies such as Bitcoin Cash, Litecoin, and Ripple. You see, these are the first-generation cryptocurrencies. So, you have to invest in these Bitcoin News coins.

  • Security Tokens

Adding a security token is essential when you want a well-balanced portfolio. The good thing is a security token can represent a lot of things. For example, a security token can be a bond of a particular project or equity. That’s the reason, one has to go through a legal procedure to own security tokens. 

  • Stablecoins

Just like payment coins, Stablecoins are essential for a crypto portfolio. You might know that the market is volatile in the crypto world. So, when you have Stablecoins, you can balance the ecosystem. The best thing is trading for stablecoins is an easy process. 

How to Build a Crypto Portfolio

Building a crypto portfolio depends on the idea of the investor. However, you can follow some general tips to build a well-balanced crypto portfolio. In the following list, we will share some essential steps you should take before investing in cryptocurrency: 

  1. Read the Studies

As a newbie investor, you have to be crucial all the time. So, before you start investing, make sure you read all the research and studies about the crypto world. The good thing is you can get several resources as some platforms publish research reports. Hence, you can also get help from pro investors. 

  1. Follow News

The crypto world is changing every day. If you are not keeping yourself updated, it will be hard for you to make a well-balanced portfolio. It’s very essential even if you are investing in the most popular cryptocurrencies. Moreover, you can make the right decision if something happens. 

  1. Monitor How Currency is Used

Besides following news and reading reports, you have to monitor how cryptocurrencies are used. In this case, you have to check several things about a particular cryptocurrency. For example, you can check the current value of a digital currency. Moreover, you can also check all the predictions of that cryptocurrency and new systems. 

  1. Stop Losses

Stopping losses is one of the key factors you have to consider to maintain a well-balanced portfolio. You might know that the crypto market is volatile. So, it would be better if you set some limitations. In this case, you can set stop loss orders. So, you can sell your assets if the price drops. It will also protect your asset from a big hit. 


Even though most people prefer investing in Bitcoin, you should try other cryptocurrencies. Diversification can help you if Bitcoin crashes. Hence, it will be very helpful to make a well-balanced portfolio. However, you have to follow the general rules to get the best result.