It is reasonable to make new plans and set achievable goals at the beginning of the year. One of the interesting tasks is to reconsider the crypto currency portfolio adding new promising assets to it. But the question is: how to understand which crypto currencies and blockchain assets will allow you to earn more money than if you just bought bitcoins and kept only them? And of course, once you figure that out, you will have to think about an approach to secure different types of data in multiple environments, combined with the crypto management and maintenance of keys.
If you have been dealing the topic for a long time, then perhaps you have your own preferences and instincts on what crypto assets are promising for investment. But even if you have good expert skills in the world of crypto projects, it will never be excessive to consider the opinion of recognized experts. It is even more important to take into account experts' opinion if your own knowledge is not enough to objectively assess the prospects of different crypto currencies and tokens. In addition, the number of crypto currencies and tokens is already estimated in thousands; there was a record number of ICOs conducted and there is no evidence yet that this trend will not continue.
Fortunately, the world of crypto currency is extremely open and all participants have an opportunity to get analytics for free. Sometimes it is enough to just listen to the advice of the right people in the industry and you have every chance of making a profit by hundreds of percent by the end of the year. Here are several strategies for your investment portfolio; truth be told, any subjective view on a situation can be wrong but it is still important to gather as much information as possible.
· Strategy #1 - take into account the fundamental expertise from industry leaders
Look for projects have been in the field for a long time. For example, Ledger is a rapidly developing global leader in security and infrastructure advice for crypto currencies and blockchain. Also, this project's wallet allows a user to users to store their private key on physical hardware. As a result, the private keys are always in cold storage guaranteeing ultimate security.
· Strategy #2 – keep an eye in the actions of successful crypto traders
Crypto currency experts and investors have come to social media and other online platforms to openly publish their opinion on market trends, major tokens, price forecasts and high reward techniques. Twitter is perhaps the most effective platform where people are not focusing on the global fundamentals of blockchain projects as much but assess short- and medium-term prospects. Meanwhile, blog posts provide longer-term analysis and observations. This includes stock trading, entry into ICO projects and monitoring the news background in the industry.
· Strategy #3 - distribute the investment portfolio
Bitcoin should account for somewhere in the range between 25% -35%. Ethereum is also a very promising coin, 15% will be the optimal amount. The Dash crypto currency should not be neglected, 5% is enough. LiteCoin, Bitcoin's younger brother, an improved version of it, he has already shown excellent growth over the past year – 5%.
Investing in ICO (around 10% of the portfolio) can also be extremely profitable but it is difficult to select a worthwhile project. Many projects go high up immediately after the ICO but many projects crash down, some do not even get the coins to the stock exchange. If you select the right ICO, then this should not happen to you. Lastly, many people think that it is unacceptable to buy coins that are not in the top 20 crypto currency. Others not agree with this and think it is possible and necessary to allocate only a part of the portfolio for them but you do not make a portfolio that only consists of them – make it 35%.
4 tools for crypto currency portfolio management
Since the crypto prices set a new benchmark almost every week, it becomes crucial to track changes in your crypto currency portfolio. There are certain applications that you can use for this. Here is a list of four applications that anyone can use on a computer or mobile phone based on the preferences.
4. TAB TRADER
One of the most common applications that you can use for crypto currency management is Tab Trader. It supports about a dozen exchangers but so far, most of the top foreign exchanges are not available. TabTrader works well on mobile devices, however, prices for certain rates can be slightly behind. If you use the application, it should solve this issue. But what else can you expect from a free app?
Crypt Folio concentrates on enabling users to track their crypto currency portfolio, as well as mined bitcoins, investments and shares. One of the essential characteristics is that it can set up daily reports about the portfolio. There are two possible arrangements: free and prime versions. Those have many contrasting components, whereas the functions of the paid option are not always necessary.
CryptFolio premium will be 0.06 BTC for a year. After a simple registration process you get the opportunity to choose 5 (100 in premium account) crypto currencies, connect your wallets, exchange accounts and even pools to the resource and then receive reports on the number of coins and their total cost with convenient graphs.
This relatively new service just went into the alpha test. CoinWizard specializes on the analytics and analysis of crypto currency investments. The tool supports more than 50 most used crypto currencies and also specific tokens such as WEX exchange tokens and Kuna exchange tokens. There is only web version but it is convenient to use on both the computer and on portable devices.
An important feature of the service is the optimal portfolio distribution of crypto currency based on its own preferences with the Markowitz model. This model allows you to optimize risks and invest in those crypto currencies, which you consider most appropriate. The developers promise to lay out a few self-regulated public portfolios that would show usefulness of using the Markowitz model.
Almost every crypto currency user has come across Block Folio. This is a cryptoportfolio management instrument that supports Bitcoin and the majority of alternative digital coins. It is also a well-known mobile way to track diverse investments. Users receive an exhaustive synopsis of their portfolio and the opportunity to register exchange transactions.
One feature that many users praise in BlockFolio is that it is able to send messages when crypto currency rates reach a certain level. This is particularly convenient for people who sell alternative coins as they are inclined to huge price changes upwards and downwards. There are incorporated system for stock graphs, a list of orders and market data for each trading pair.
Once you get your assets under control, it is time to get around crypto key management. Any cryptographic system is based on cryptographic keys. Key information is understood as the aggregate of all keys operating in the information network or system. If there is not enough reliable management of key information, then, having mastered it, an attacker gets unlimited access to all information in the network or system. Key management includes implementing functions such as generation, storage and distribution of keys.
When using a symmetric crypto system, two communicating parties must first agree on a secret session key, i.e., the key for encrypting all messages transmitted during the exchange. This key must be unknown to all the rest and must be regularly updated by a sender and a recipient at the same time. The process of negotiating a session key is also called the exchange or distribution of keys.
Asymmetric crypto system involves two keys - public and private. The public key can be disclosed and the private one should be kept secret. Only the public key must be forwarded when exchanging messages ensuring the authenticity. The key requirements are as follows:
• Efficiency and accuracy of distribution;
• Confidentiality and integrity of the keys.
There are two main methods for distributing keys between users of a computer network:
· One or more key distribution centers;
· Direct exchange of keys between users of the network.
Both approaches entail some problems. In the first case, the key distribution center knows where and what keys are allocated; and it results in reading all messages transmitted over the network. Possible abuse can significantly disrupt network security. In the second case - it is necessary to reliably verify the authenticity of the network entities. Let us dwell on the second approach.
When using a crypto system with a symmetric private key to secure information exchange, two users who want to exchange cryptographically protected information must have a common secret key. These users must share the public key through a secure channel. If users change the key quite often, then key delivery turns into a serious problem. To solve this problem, you can:
· use an asymmetric crypto system with a public key to protect the secret key;
· use the Diffie-Hellman public key distribution system.
To store large amounts, you should go for hardware and desktop crypto currency wallets as they are tailored to ensure assets security. If you need fast and steady access to your crypto currency account, you should switch to mobile and online wallets. However, it is worth mentioning that these types of crypto wallets are not suggested for big savings since they are much less secure. Thus, you can see why the issue of funds safety is the most important in terms of all possible currency risks.