How to start a crypto portfolio

Which cryptos to buy first?

I started (January 2021) first to buy the crypto with the strongest market capitalization (to find on coinmarket.cap). So I bought Bitcoin and Etherum first. Just to get into this topic and learn  about crypto.

But then you need to do your own research.

My example. I saw, as I hold ETH, that the gas fee is so high, which makes ETH unusable for small money value transactions and the transaction times are high. In my research I found out, that exactly these problems Solana solves. So I bought in addition Solana.

Where can I buy crypto?

You can buy crypto on a crypto broker (A cryptocurrency broker is a firm or an individual that acts as an intermediary between the cryptocurrency markets to facilitate buying and selling of crypto).

Usually on a crypto broker you can also exchange cryptocurrency.

There are a lot of crypto broker worldwide you can use. But be aware, do your own research, which crypto broker fits for you. It depends also in which country you are and what kind of regulation exists. Take into account, there are some crypto broker, which can disapear and you loose your cryptos.

I use a lot of different crypto broker and exchanges. For buying cryptos I do a lot with … (as I am based in switzerland)

How do I buy crypto?

If you choosen a crypto exchange, there are mostly 2 possibilities.

Bank transfer or via credit card.

My main crypto exchanges to buy crypto are today Binance, Crypto.com, Swissborg.

When do I buy crypto?

To buy the cryptocurrency at the right time is quite difficult. There are so many factors playing in. I am not good to buy at the right time. My strategy is, buy and hold. But I try also to buy at the right time. I list some of my experiences I made during my crypto journey.

Where do I store my cryptocurrency?

This is a very important question. Especially if the crypto holdings grow. As I do not trust anybody, even myself (doing mistakes). My strategy is, do hold crypto coins/tokens in a lot of different locations. I do this since Jan 2021 and it works well for me. It needs to have discipline to manage all this holdings.

How do I secure my cryptocurrency?

Which crypto coins and how much do I store in a private wallet. According this question it raise up another question. “Should I store it in a HOT wallet, or COLD wallet?”. I personally store my crypto coins where it makes sense from staking, usage, security point of view. Some examples:

Where do I stake my cryptos?

I started small, with just some cryptocurrencies. Then I made a research where I can get some “interest” for my cryptos. Now I have a diversified portfolio, where I stake my cryptos, to get an “interest”.

How do I move crypto?

Sometimes you need to move crypto. An example would be, to transfer from crypto broker to your personal wallet. Another example to move the crypto there, where you get the best staking reward. Or you want to spread crypto on different brokers and wallets (spreading risk).

When and where do I sell crypto?

My strategy is buy crypto and hold. But if the crypto market is overbought, I sell some volatile crypto and buy stablecoins. Or if I want to change my crypto allocation portfolio, I sell some crypto to buy another crypto.