How to grow your crypto portfolio

adbank
4 min readDec 14, 2021

More people have recently developed an interest in crypto. The 2021 Independent Reserve’s Cryptocurrency Index (IRCI) survey showed that 93% of Singapore residents have heard of crypto, 43% own crypto, and 74% of the respondents who owned crypto reported increased wealth through crypto.

In a dynamic world full of uncertainties on business performance and job security, one would consider it prudent to diversify their income streams. Businessmen aim to maximize their profits. Similarly, if you own assets in form of cryptocurrencies, you should find ways to grow your portfolio. Below are some ways you can grow your crypto portfolio.

1. Diversification

For beginners who are new to crypto and intend to acquire some, diversifying your crypto portfolio allows you to spread your risk. Instead of putting your eggs in one basket, you can choose to spread your investment in various crypto assets.

You can consider the size of your fund, market swings, and risk tolerance when deciding to diversify your crypto assets. You also need to do thorough research on crypto performance.

You may consider selecting crypto in different regions, to safeguard you from regulatory uncertainties that may arise so that all your investments do not get affected. Instead of choosing one coin such as Bitcoin, you can also consider privacy coins, altcoins, and tokens such as ADB.

In addition, when choosing to diversify, you can have a mix of risky and stable options. One can also choose to diversify in various industries such as health, advertising, and finance. Although cryptocurrencies are highly volatile products, it would not harm to consider less risky ways to grow your crypto assets.

Time diversification is where you choose to buy when prices are low. You can opt to sell when prices are high. All these diversification options aim to give your assets overall protections such that even if one or more of your assets performs poorly due to market swings, the others do not get affected, and overall, your portfolio grows instead of reducing.

2. Earn interest on your crypto assets

You can also grow your crypto assets through a cryptocurrency interest-earning account. Unlike traditional bank accounts, crypto savings accounts can yield up to 12.3% per annum.

You can open crypto savings account with an exchange. However, you need to do your research so that you go for a reliable and trustworthy platform. To earn higher interests, you can consider investing in the long term. Some platforms offer simple interest while others offer compound interest if you do not withdraw your interest payout. Interest earned is combined with the principal amount to give you higher interest.

It is important to note that interest earned is driven by market conditions. During maturity, you get paid in the same crypto that you placed.

3. Storing crypto in some wallets to earn interest

You can earn crypto wallet interest when you store your digital assets in some platforms’ wallets. You can earn between 3 and 18.55 % on some platforms depending on the currency.

Adbank rewards its community members with ADB tokens when they hodl their tokens in an ERC20 wallet. This is besides ADB rewards that one gets when they perform tasks on the Blade app or invite others through a referral link.

4. Crypto lending

This is where digital currency is used as collateral for a loan. The borrower pledges their crypto assets to get a loan. You can consider this if you do not intend to use your crypto assets in the short term. You cannot trade or transact with crypto that you pledge as collateral for a loan.

Whereas you can get money to do a project against your digital assets, you may end up owing more than you borrowed if the value of your assets significantly drops.

Crypto loans are over collateralized. Crypto lenders earn interest termed “crypto” dividends. If the borrower defaults, the lender can liquidate the pledged amount to recover the amounts they advanced to the borrower. A lending platform connects the lender and the borrower.

Conclusion

Diversifying your crypto assets is important. If you anticipate the price of cryptocurrencies will increase, you can consider placing your crypto assets in an interest-earning account. However, price volatility is common in the crypto space, and you may end up losing so much when the price drops. You can also earn hodl rewards with Adbank, and watch your crypto grow.

The writer is the Marketing Coordinator at Adbank. Earn #freecrypto with the #BLADE app.

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