As you know, the Swap Wallet service can be used not only for storing, transferring and exchanging cryptocurrency, but also for investing it. That is why we will devote our next article to such a popular topic as an investment portfolio and its types.
An investment portfolio is a collection of assets (fiat currencies, cryptocurrencies, securities, precious metals, real estate, etc.), formed in a certain proportion to achieve a break-even investment. An investment portfolio is necessary to diversify risks, therefore, when building it, you need to clearly adhere to a specific investment strategy: aggressive, moderate or conservative.
In accordance with the chosen strategy, the investment portfolio can be:
Aggressive. It includes more profitable and at the same time more risky assets that have a considerable probability of depreciation. Such a portfolio is more suitable for short-term investment.
Conservative. Includes stable assets with low volatility, which do not bring very large profits, but are also less prone to drawdown. It makes sense to create a conservative investment portfolio for long-term investment.
Moderate. This is the “golden mean” between aggressive and conservative investment portfolios. It combines both less and more profitable assets with appropriate risk allocation.
To make an investment portfolio as balanced as possible, you need to take into account several factors when forming it: the estimated amount and the investment period. It is believed that it is better to invest in risky assets with a smaller amount for a short term, and in conservative ones – with a larger amount for a long term.
A well-balanced investment portfolio will help maintain profits, or at least break-even if the part of the assets drawdown. Therefore, its correct composition is one of the most important skills of any investor.
Remember that you can always turn to customer support for advice: and our specialists will provide you with the most relevant analytical data on the profitability of certain assets.