Steemit Crypto Academy Contest / S5W6 - My cryptocurrency portfolio

Hello my dear steemit family, first of all I am very grateful to all the team of Steemit Crypto Academy for organizing this informative contest in season 5 week 6 - that we had the opportunity to write on my cryptocurrency portfolio. I personally feel that this is a hot topic that is very important to understand and be informed about because everyone is trading in cryptocurrency so I hope this article is helpful to all readers.I tried my best to write In very simple words, the article.which everyone can easily understand.

_{Explain in your own words what a cryptocurrency portfolio is.}
When I first invested in cryptocurrency, I came to know the word portfolio because many people used to say to each other whenever they talked about crypto assets, what is your crypto portfolio and I was surprised.

What is this portfolio, then I will try to tell you in very simple words that portfolio means to have a record of all the skills you have or all the assets you have like a document. All this is called portfolio.

Suppose you have to apply for a job in a company and when you apply for a job, you will see your experiences, educational qualifications and all your records, then it will be called your portfolio.

Which cryptocurrency tokens or coins do you have? Which cryptocurrency you have bought and how much capital you have invested, all these assets in cryptocurrency will be called your portfolio.

Suppose a person has steem, trx, bitcoin, usdt, SBD in crypto wallets, then all these assets will become a portfolio and this will be called a crypto portfolio.

There are many types of portfolio in which a student can have a portfolio, a company can have a portfolio and every investor working in it can have a portfolio.

_{Do you prefer a diversified portfolio or a concentrated portfolio? Explain each one.}

Diversified portfolioEvery person wants to get profit in whatever he does and to get profit every person invests in cryptocurrency or any activity by making different portfolios.

We try to know about Diversified portfolio, is it a portfolio? Diversified portfolio refers to investments that we make in different percentages in different coins.

Suppose I have an investment of 1000 dollars and I buy 1000 dollars of different cryptocurrencies, then investing different percentages in different coins is called Diversified portfolio.

We can say in simple words that in order to minimize our loss, we invest in different places or in different coin or token, then we call the portfolio formed by this type of investment as Diversified portfolio.

Concentrated portfolioInvestment in concentrated portfolio is done in a few specific coins, we can say that investing in a specific and special few coins is called concentrated portfolio and in it the portfolio is not big like diversification.

I have invested in crypto trade in both types of portfolio but I got the most profit in Diversification because in the beginning I thought that only invest all the capital in good coin and only from that you will get profit because good coin is the best.

And they have a lot of buyers and sellers, but this all proved to be wrong over time because when we put everything in one company, it will make us more afraid of losses,

so I think that the concentration portfolio is better. A thousand-level diversification portfolio is better because we can divide our capital into different projects and thus have opportunities to get success from more than one place.

If we only invest in one coin or two coins, what if that coin crashes, as the news of Luna and Solona is coming, I think that the best way to protect your capital is Portfolio Diversification and I I will give preference to the same.

_{In your portfolio do you have any crypto assets in Hodl? Explain what is Holder in cryptocurrencies.}

Actually I have invested in different coins in diversification portfolio and I think that my investment is reliable even during such severe crash, I have invested in trx, steem, Ripple, stellar, Sps, DEC, DBC,

I have invested in BCD, and different coins and I am very satisfied with them because profit and loss is a part of trade, but when we invest our capital in different places and companies, the chance of success increases compared to the loss. What I mentioned above is my small portfolio.

I tried to show you a screenshot of one of my wallets, so that you can check my holding. There have been some coin scams but since I have invested my capital in different places, I have saved, Arv and Yooshi have done a lot of damage in this and I hope everything will get better with time.

_{In your portfolio, you have some crypto assets in Staking. Explain what is Staking in cryptocurrencies.}

Before understanding staking, we need to have some information about proof of stake and proof of work. As we know, many people are earning from bitcoin mining.

They are performing the process of mining and creating new transaction blocks on the blockchain. As fast and heavy as the machine is, mining is being done and thus all the transactions are being done through all these computers, and this is how the blockchain is working through mining.

In this, every staker gets importance who will have the most relevant coin's staking power or the role of witness is the most important to whom the power is given by stake holder vote.

We can say that in staking, in transaction nodes, the staker gets the mining reward, while in proof of work, the one who has the system is faster. Thus, the concept of staking is that whenever we buy a coin and it has a staking option, we stake it, which means we stake the coin for some time, which we cannot withdraw immediately.

The way we stake steem, our SP is the stake power of steem coin and in this way we can mine more steem by making steem power. Mining a coin or getting a staked coin as a stake reward. I currently have sps and steem staking and besides dlux coin lyrnx coin is also staked.

_{Which do you prefer Hodl or Staking?}

I think both are best I prefer both if a person has capital and invests it on staking and Hodl in different ways and in a plan then both can be beneficial but any project A complete research should be done before choosing it because both staking and hodl are long term and are more than one to two months but staking is a long term investment which requires future planning and benefit.

While in hodl we invest by looking at both long term and short term, but it is possible that the hodl coin market suddenly increases, then we can sell hodl immediately and earn profit on the other hand.

If the market crashes then we can avoid further loss by selling our hodl but stake is a long term because when a coin stake is locked for a period and we cannot sell it immediately.

So according to me both are best we should make some of our investment in hodl and staking. I hope you will like this article of mine today. I have tried to write in very simple words. I invite these friends of mine to write articles on it today @tariqkhanpti , @jessica566 ,@sagar0 and @anwar1976

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