{"id":5361,"date":"2020-08-07T18:57:07","date_gmt":"2020-08-07T15:57:07","guid":{"rendered":"https:\/\/godex.io\/blog\/?p=5361"},"modified":"2021-10-15T13:24:05","modified_gmt":"2021-10-15T10:24:05","slug":"best-long-term-portfolio","status":"publish","type":"post","link":"https:\/\/godex.io\/blog\/best-long-term-portfolio","title":{"rendered":"Best Long-term Portfolio"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_25_1 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#advantages_worth_taking_into_account\" title=\"Advantages worth taking into account\">Advantages worth taking into account<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#successful_record\" title=\"Successful record\u00a0\">Successful record\u00a0<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#low_trading_fees\" title=\"Low trading fees\">Low trading fees<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#less_stress\" title=\"Less stress\">Less stress<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#safety_first\" title=\"Safety first\">Safety first<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#digital_coins_for_the_long-term_portfolio\" title=\"Digital coins for the long-term portfolio\">Digital coins for the long-term portfolio<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#market_share\" title=\"Market share \">Market share <\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#applicability\" title=\"Applicability\">Applicability<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#transactions_and_daily_volumes\" title=\"Transactions and daily volumes \">Transactions and daily volumes <\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#top_4_cryptocurrencies_for_your_investment_portfolio\" title=\"Top 4 cryptocurrencies for your investment portfolio\">Top 4 cryptocurrencies for your investment portfolio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#portfolio_design_and_risk_evaluation\" title=\"Portfolio Design and Risk Evaluation\">Portfolio Design and Risk Evaluation<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/godex.io\/blog\/best-long-term-portfolio\/#conclusions\" title=\"Conclusions\">Conclusions<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\r\n<p>In recent years, Bitcoin became one of the most attractive assets on the market. Compared to gold or any other stocks, the top digital currencies by market capitalization significantly overrun the return on investments, or ROI. Long-term cryptocurrency investment can be a very advantageous strategy which is often recommended by Warren Buffet and a number of other influential Wall Street investors and millionaires. This article will guide you through the most important details that are worth taking into account if you are interested in designing a profitable long-term portfolio.\u00a0\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Bitcoin has been traded since the first crypto exchanges were introduced almost a decade ago. At the same time, it became well-known and influential only a few years ago when the cryptocurrency and ICO rush has begun all around the world. In early January 2017, Bitcoin has entered the cryptocurrency market at about $1000 price level and rapidly grew to almost $19 800 by December, which is considered to be Bitcoin\u2019s highest price of all times. 20x growth in less than 12 months has triggered fear of missing out among traders, investors, miners and anyone who had the slightest interest in virtual coins and wanted to strike it rich in a short period of time.<\/p>\r\n\r\n\r\n\r\n<p>While Bitcoin\u2019s popularity was boosted by enthusiasts and newbies who wanted to buy this promising cryptocurrency for the first time and enter the market, experienced investors were not planning on selling their Bitcoin capital. In other words, they followed a long-term investment tactics, also known as HODLing, which is undoubtedly the most widespread cryptocurrency investment approach. The concept was first introduced several years ago, when Bitcoin was in a bear stage and one of the investors wrongly spelled \u201chodling\u201d instead of \u201cholding\u201d to express his unwillingness to exit the current position. HOLD became a full-fledged cryptocurrency tactics that is determined by sustaining a position and expecting that it would grow in price soon.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>At first glance, long-term portfolio is quite an obvious strategy which suggests embracing a long-lasting approach to investments. In the stock market language, \u201clong-term\u201d normally means investments that last more than couple of years. At the same time, Bitcoin and other digital currencies are also infamous for their high volatility which signifies that this approach should be taken with caution by inexperienced or impatient investors. In the cryptocurrency world, long-lasting investments are those that last more than several months and up to one year. For this reason, it is also highly advisable to consider risk minimisation recommendations.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"advantages_worth_taking_into_account\"><\/span>Advantages worth taking into account<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"successful_record\"><\/span><strong>Successful record\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>XXth century history of modern economy has demonstrated that long-term tactics is profitable. According to statistical data provided by S&amp;P 500, the annual return from 1927 to 2019 was around 12%. This proves that financial markets tend to grow in long-term perspective despite all possible downturns, black swan events and negative trends. Without a doubt, cryptocurrency market is very different from traditional financial markets. At the same time, HODL is still considered to be the most well-established strategy even in the young and volatile crypto world.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"low_trading_fees\"><\/span><strong>Low trading fees<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Your trading fees depend, among other factors, on different trading strategies. The more active trading approach you will follow, the bigger transfer fees will be deducted from your potential profit on the market. Long-term investment tactics does not imply high (if any) trading fees as all you need to do is just to HODL. Only the primary transaction fees will be taken into account.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"less_stress\"><\/span><strong>Less stress<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Active trading strategies require a lot of research and dedication. Trading regulations and restrictions, malware attacks and global macroeconomic events have a significant effect on Bitcoin\u2019s rank on the market. That\u2019s why it is essential to stay up-to-date with the most recent cryptocurrency news and updates in order to foresee bull runs, upward trends and profitable periods. For example, 26th of October 2019 was a major Bitcoin pump which brought around 40% ROI to all investors. Unlike active traders, long-term strategists do not have to stress over those events and possible risks. At the same time, there are a lot of methods that can minimize possible long-term risks, such as dollar-cost averaging, gradual investment, etc.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"safety_first\"><\/span><strong>Safety first<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Long-term investing also means that your digital funds will be stored more securely and less exposed to attacks and frauds. Keeping your virtual coins offline substantially reduces the chances of external threats and risks. Hackers can not steal digital funds from your cryptocurrency hardware wallet if it is kept in an offline regime. While software wallets can be vulnerable to malware or attacks, hardware wallets can go online when users want to trade or perform any other operation and then be turned offline to ensure portability and great security.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"digital_coins_for_the_long-term_portfolio\"><\/span>Digital coins for the long-term portfolio<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>It is important to choose the most appropriate cryptocurrencies for the long-term portfolio and outline an effective plan for its building. Thus, there are several crucial indicators which will help you to make a right choice.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"market_share\"><\/span><strong>Market share <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Also known as market capitalisation, this indicator illustrates the share of market cap that a digital currency has relative to the whole market. The bigger market capitalisation is, the more influential a particular coin becomes. Market share is a great factor which can help to determine the prospects of a particular cryptocurrency in the long run. Thus, a well-designed long-term portfolio should not include cryptocurrencies with a low market share (lower than $1bln). Coins with an insignificant market capitalisation are more unstable and easy to manipulate.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"applicability\"><\/span><strong>Applicability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>When evaluating long-term perspectives of a particular digital currency, we need to understand whether the idea behind it has a potential to contribute to a certain field (finance, banking, e-commerce, education, etc). It can also be a good idea to check the project\u2019s website, white paper and community. For example, Binance Coin also has a great applicability, because it plays a crucial role in maintaining the Binance ecosystem.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"transactions_and_daily_volumes\"><\/span><strong>Transactions and daily volumes <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Cryptocurrency\u2019s daily volume and a total number of successful transactions is also an important indicator if you want to design a good investment portfolio. Well-established cryptocurrencies have a large daily volume, which should not be confused with spam transactions or zero-value.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"top_4_cryptocurrencies_for_your_investment_portfolio\"><\/span>Top 4 cryptocurrencies for your investment portfolio<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/bitcoin.org\/en\/\"><strong>Bitcoin<\/strong><\/a><strong>\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n<p><strong>80% of low-risk portfolio<\/strong><\/p>\r\n\r\n\r\n\r\n<p>Bitcoin is the most well-known cryptocurrency on the market that should be considered by every investor interested in a long-term profit. It was launched in 2009 with the main goal to create a viable alternative for traditional banking, finance, money and fiat.\u00a0<\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/ethereum.org\"><strong>Ethereum<\/strong><\/a><strong>\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n<p><strong>7% of low-risk portfolio<\/strong><\/p>\r\n\r\n\r\n\r\n<p>With a great market capitalisation and daily volume, Ethereum is more than just a well-known cryptocurrency which is generated through mining and farming. It also stands for an innovative blockchain network powered by smart contracts that allows users to build decentralised applications and create tokens.\u00a0<\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/z.cash\"><strong>ZCash<\/strong><\/a><strong>\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n<p><strong>6 % of low-risk portfolio<\/strong><\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/godex.io\/coin\/zec\">ZCash<\/a> is a digital currency which prioritizes advanced transparency, privacy and anonymity. It is based on zk-SNARKs, or Zerocoin protocol, which keeps all executed transactions entirely transparent and protected. The platform is kept secure and does not disclose the users\u2019 personal records, such as identity, passwords or amounts transacted. Information on transactions is encrypted without the need to disclose spend-parties. Users can apply zk-SNARKs mechanism to ensure that the operation was open and transparent.\u00a0<\/p>\r\n\r\n\r\n\r\n<p><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/www.getmonero.org\/\"><strong>Monero<\/strong><\/a><\/p>\r\n\r\n\r\n\r\n<p><strong>4% of low-risk portfolio<\/strong><\/p>\r\n\r\n\r\n\r\n<p>Monero is an innovative privacy coin which focuses on the best security protocols as its key characteristics. This virtual currency involves a special type of cryptography to make sure that a maximum number of its transactions become inconspicuous and unlinkable. Monero is probably the best coin which involves security settings like stealth address, Tails OS and ring signature. <a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/godex.io\/coin\/xmr\">Monero<\/a> can be purchased via different cryptocurrency exchanges, such as Godex.io.<\/p>\r\n\r\n\r\n\r\n<p>Check <a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/godex.io\/blog\/crypto-currencies\/top-9-most-profitable-cryptocurrencies-in-2020\/\">Top 9 most profitable cryptocurrencies in 2020<\/a><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"portfolio_design_and_risk_evaluation\"><\/span>Portfolio Design and Risk Evaluation<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Global market investors with neural risk attitude normally design their long-term portfolio with 50% bonds and 50% equities. The latter are more volatile than bonds but in the long run they bring higher profit. In this case, investors with low-risk attitude would spend more on bonds as a more stable option.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Cryptocurrency investors generally believe that Bitcoin is the best option for long-term strategies because it is more stable and predictable compared to the other altcoins which often depend of Bitcoin\u2019s position on the market. All cryptocurrencies can be divided into four risk-related groups: low risk (usually referred to Bitcoin HOLD strategy), medium risk (top cryptocurrencies with a high market cap that are used for active trading), high risk (altcoins) and gambling (newly emerged coins with low market caps). Thus, it always depends on a particular investor, his goals and risk profile when it comes to building a good long-term portfolio.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"conclusions\"><\/span>Conclusions<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>With thousands of different cryptocurrencies available on the market, it is important to consider as many factors and indicators as you can to ultimately make the best decision on your long-term portfolio. Your final trading portfolio should also estimate your attitude to risk and speculations.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Table of Contents Advantages worth taking into accountSuccessful record\u00a0Low trading feesLess stressSafety firstDigital coins for the long-term portfolioMarket share ApplicabilityTransactions and daily volumes Top 4 cryptocurrencies for your investment portfolioPortfolio Design and Risk EvaluationConclusions In recent years, Bitcoin became one of the most attractive assets on the market. Compared to gold or any other stocks, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132,133],"tags":[108,1079,114,1595,463,926],"yst_prominent_words":[],"class_list":["post-5361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-currencies","category-crypto-talks","tag-bitcoin","tag-crypto-talks","tag-crypto-tips","tag-long-term-portfolio","tag-monero","tag-zcash"],"lang":"en","translations":{"en":5361},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/5361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/comments?post=5361"}],"version-history":[{"count":2,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/5361\/revisions"}],"predecessor-version":[{"id":6014,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/5361\/revisions\/6014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media\/5362"}],"wp:attachment":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media?parent=5361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/categories?post=5361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/tags?post=5361"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=5361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}