10k Crypto Portfolio: How to Invest With ICONOMI
If you have a pile of cash lying around and want to do something with it, it's been common practice for many years to invest in traditional assets such as stocks, government bonds and real estate. But it's now 2023, and the current economic climate has shown that what was once secure and profitable, isn't the case anymore, and is forcing people from all walks of life to find new alternatives to safeguard or grow their wealth.
One increasingly popular alternative has been to diversify into cryptocurrency, which besides having much lower barriers to entry compared to other asset classes, has at times yielded impressive results, as seen with Bitcoin outperforming most stocks in 2023.
However, navigating this new market is easier said than done, and given how many people are tied down by 9 to 5 jobs, it's hardly surprising that first-time investors often lack the knowledge and confidence to navigate this new market effectively. The good news is that there are now solutions to cater for this, and one interesting avenue for new investors is to invest through regulated crypto portfolio service providers such as ICONOMI.
So if you are a first-time investor with 10 to 100k spare, but lack the time or confidence to invest in crypto, then don't worry, as this article will serve as a guide that will help you to set up your own portfolio so you can invest into one of the world's most promising asset classes!
What is a Crypto Portfolio?
Put simply, a crypto portfolio is a means in which to gain exposure to multiple digital currencies, whilst simultaneously managing them for optimal returns.
Although objectives can vary depending upon one's strategy, the key objective of most crypto portfolios is to build a well-rounded and diverse group of assets, distributing investments across various cryptocurrencies to mitigate risks. In most cases, a balanced portfolio includes a combination of high, medium, and low-risk investments
Whilst these portfolios can at times be managed manually by fund managers, most usually come in the form of specialised online platforms/apps which are designed to invest in various cryptocurrencies, and that have cutting-edge tracking utilities that monitor the performance of each asset in one's portfolio; as well as live feeds and pricing updates from cryptocurrency exchanges.
Benefits of Investing Through a Crypto Portfolio
Below are a list of compelling benefits that can potentially be obtained by allocating a part of your investment capital into a crypto portfolio.
Please note, that just like in any other speculative market, there will always be a risk of incurring losses, so it is always advisable to invest only what you can afford to lose.
#1 Diversification into compelling value propositions
The first utility of having a portfolio made up of various different cryptocurrencies is having the ability to diversify your investment across various different value-propositions.
Most of the top cryptocurrencies by market capitalisation have unique technological and economic offerings that are still very much in their infancy (relative to more traditional assets), and all are vying to break into a mainstream setting. Therefore, the common investment logic that many people have is that if you invest early, then there is a chance of seeing a good return on investment (ROI) in the long run.
For example, if you strongly believe Ethereum (ETH) will be the go-to blockchain for deploying smart contracts and decentralised applications (dApps), but also see value in Binance Coin (BNB) due to Binance's projected continued success, and Polygon (MATIC) for it's complimentary scaling solution, then having a portfolio can be an ideal way of hedging your bets.Therefore, if you had a 10 or 100k crypto portfolio, a breakdown could look something like this: ETH (60%), BNB (20%), MATIC (20%).
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
#2 Hedging bets
The second benefit of having a portfolio of cryptocurrencies is that it can allow investors to hedge their bets.
Most seasoned investors will agree that allocating all of your investing capital into one or two crypto tokens is not advisable by any means, and is incredibly risky due to the frequent volatility that is commonly seen in the crypto market. For this reason, crypto portfolio platforms allow investors to hedge their bets by allowing them to invest in multiple different digital assets all at once.
But be aware, that no hedging strategy is 100% fail-proof, and there is still a chance that you can lose everything. Cryptocurrency investing is extremely risky. So only invest what you can afford to lose.
#3 Up-to-date safeguarding technology
Another benefit is that reputable portfolio platforms are up-to-date with the latest safeguarding technology. This can be exemplified by the implementation of cutting-edge security measures, such as advanced encryption techniques and multi-factor authentication.By leveraging the latest technology to safeguard digital assets, these platforms are seeking to bring more security assurances to their user base. However, it’s important to be aware that even though these platforms are doing their best to strengthen their safeguarding measures, hacks still remain a constant threat within the crypto space.
#4 Automated strategies
Investing through a crypto portfolio platform can also make your life a LOT easier, especially give how most platforms offer an array of different automation tools.
With the help of automated tools, you can set up recurring investments, establish rebalancing schedules, and in some cases, even utilise advanced trading algorithms. This ensures that your investment strategy remains on track without requiring constant monitoring of the markets. It's like having a co-pilot accompanying you on your crypto journey, guiding your investment decisions while you navigate other aspects of your busy life.
#5 Transparent performance data
Last but not least, and perhaps one of the most compelling motivations for investing through a portfolio set up, is having access to crypto strategies that transparently show past and current performance.
With crypto strategies, there is no trust involved, as the performance of a portfolio allocation is on display for all to see, and shows the gains and losses incurred throughout its existence; as well as a breakdown of the assets involved. For this reason, building a crypto portfolio using transparent performance data is one of the more efficient ways of entering the crypto market as a new investor.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Past performance does not guarantee future gains. Always do your due diligence when it comes to investing.
Create and Manage Your Own Crypto Portfolio with ICONOMI
When it comes to crypto portfolios, few platforms have the same degree of oversight, expertise and utilities compared to ICONOMI.
Founded in 2016, ICONOMI is one of Europe's leading crypto investment platforms, and is one of the few to be regulated by the UK's Financial Conduct Authority (FCA). The platform is designed to cater to both beginners and seasoned investors, and pioneered the model of connecting new users with seasoend investors, giving them the opportunity to mirror trades and investments. To date, £10 million has been earned by users on the platform, and this explains why it is trusted by over 100,000 people.
So instead of having to spend hours and hours researching, and trawling through various crypto exchanges, users can browse through 200 public crypto investment strategies (or choose from the most copied ones) to build their own crypto portfolio. What's more, you can choose from a list of 150 cryptocurrencies, and at the best market prices thanks to ICONOMI's unique trading engine that finds the best prices from the top ten crypto exchanges.
In addition to this, if you are a business and would like to include crypto on your balance sheet, then the platform also caters for business accounts that are specifically designed for this purpose.
Sold on ICONOMI? If so, then you can follow the steps below to immediately start your investing journey.
Sign up
Signing up to ICONOMI is an incredibly short and straightforward process.
Simply head over to the platform's sign-up page, and you will then be asked to fill out a few details such as your name and email address. Once submitted, you will be asked to verify your account to access Tier 1 privileges.
Here you will have to enter your nationality, personal data, and take a picture of your ID document and face, whilst also uploading a proof of residence document.
In total, you can have your ICONOMI crypto account up and running within 5 minutes.
Deposit money
Once you have signed up, you can deposit money to your ICONOMI account by using your preferred method. When logged in, click on the green “Deposit” button on the left side of the screen. You can use a variety of methods to deposit to the platform, including a bank transfer, your credit card, a crypto transfer, or using a Skrill account.
Please note, that for security reasons, some of the funds cannot be withdrawn immediately after deposit.
Start investing
And there you go, you are now ready to start your crypto investment journey!
Using ICONOMI's user-friendly and intuitive dashboard, you will find a range of crypto projects and cryptocurrencies, including the top 10 Altcoins, and popular DeFi protocols. While you are free to include these in your portfolio, it's important to acknowledge that you need to weigh up various factors before investing, including market trends, project fundamentals, and risk analysis.
For this reason, copying one of ICONOMI's crypto strategies to begin with may be appealing to you. But you will still have complete control over your portfolio, and this enables you to make adjustments and respond to market fluctuations in real-time.
Leverage ICONOMI's Crypto Strategies
One of the most accommodating aspects of the ICONOMI platform is that it’s designed to guide new users through the best options available to them on the Crypto Strategies page.
Right from the get-go, users are exposed to 6 categories that can help investors mirror various different strategies, including “Best Long-term”, “Most Copied”, “Best Risk/Reward”, “Most Active”, “Top Performer 1Y”, and “Weekly Gainers." These filter options allow users to view performance through time frames such as 24 hours, 7 days or all-time, and the volatility level of each.
But if you are still not sure on what to do, then don't worry, as ICONOMI also provides a 'Get a hint' feature underneath the Best Crypto Strategies section. By simply inputting an investment amount, the platform will then email you some suggestions.
Below are some featured long-term crypto strategies that may appeal to you.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Past performance does not guarantee future gains. Always do your due diligence when it comes to investing.
Blockchain Index
The Blockchain Index strategy is a passive investment strategy that focuses on well-established crypto projects. Notably, this strategy allocates funds based on market capitalisation, with a fixed weighting between Ethereum (ETH) and Bitcoin (BTC). It also monitors emerging projects that display strategic significance. The best part of this strategy is that it does not impose a performance fee; however, investors are liable for a 3% copy fee and a 0.50% sell/exit cost per transaction.
As of this moment, this strategy has an all-time return of +4,086.10%, and +22.68% for the past 6 months.
Diversitas
Diversitas is a strategy to consider if you are interested in DeFi staking protocols. The strategy focuses on actively spreading investments between Bitcoin and a range of Altcoins. Over time, and has become a popular strategy among investors.
In terms of fees, the strategy charges a copy fee of 1% per year, along with a monthly performance fee of 6%. But it is important to note that these fees are collected only when copiers make a profit. Additionally, there is an exit or sell cost of 0.5% per transaction which is relatively affordable when compared to many paid strategies out there.
As of this moment, this strategy has an all-time return of +5,212.84%, and is up +72.78% for the past 6 months.
Crush Crypto Core
This strategy may be of interest to you if you're an investor looking for a mix of high-quality and undervalued projects. The Crush Crypto Core strategy is designed to adjust its allocation of assets based on market cycles and sentiment, with the aim of achieving better returns compared to a typical portfolio comprising BTC and ETH. However, it is important to note that there is a 15% monthly performance fee associated with this unique diversification approach, and it is typically collected only when buyers or copiers make a profit.
As of this moment, this strategy has an all-time return of +1,204.31%, and is up +10.86% for the past 6 months.
Ethereal DeFi Strategy
The Ethereal DeFi strategy is popular for its primary investment in the Decentralised Finance (DeFi) space, and consistently ranks among the top five on ICONOMI.
In terms of cost implication, Ethereal's strategist charges an annual copy fee of 1.3% without any additional performance fees, alongside an exit/sell cost that amounts to 0.5% per transaction.
As of this moment, this strategy has an all-time return of -12.60%, but is up +36.12% for the past 6 months.
Conclusion
If you are new to crypto, but are eager to invest some of your capital, crypto portfolios are structured investment vehicles for diversifying into a range of exciting digital assets.
So if you were in a position to invest 10k into a crypto portfolio, but lack the time and expertise to commit, then ICONOMI's platform has everything you need to invest in an array of diverse strategies. However, as will always be the case, you should only invest what you can afford to lose, and should go into this with caution.
But as time goes by, and as you get accustomed to mirroring the investment strategies of more seasoned investors, you will start to gain a much better understanding of how the crypto market works.
The ball is now in your court. Best of luck with your investments, and if you have any questions, don’t hesitate to reach out!
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