Diversifying into gold, forex and other assets through Bybit Gold&FX helps crypto traders manage risk and stabilize their portfolios amid market volatility.

Navigating financial markets can feel like riding a roller coaster, with sharp twists and turns driven by economic events, inflation and global uncertainty. While crypto offers exciting opportunities, its volatility can be overwhelming. That’s why savvy traders look beyond digital assets, incorporating gold and forex into their strategies to create a more balanced portfolio. 

 makes this approach easier, giving traders the chance to diversify their portfolios into gold, commodities and forex. At the same time, Bybit Copy Trading Gold&FX allows traders to tap into expert strategies and advanced tools to 

 and capitalize on macro trends. This handy guide explores three simple steps to embrace macro volatility with Bybit Gold&FX so you can build a more resilient trading approach.

Volatility is a measure of how much asset prices fluctuate over time, indicating the level of uncertainty in financial markets. Higher volatility means bigger price swings, while lower volatility suggests more stability.

Why crypto traders should pay attention to gold, stocks and forex

, with prices often fluctuating dramatically and creating potential risks for investors. To 

, many crypto traders look toward diversifying their portfolios by incorporating traditional assets, such as gold, stocks and foreign exchange (forex), etc. Let’s look at why this matters.

Gold has long been viewed as a hedge against economic uncertainty, inflation and currency devaluation. Unlike crypto, which can experience extreme price swings due to factors like sentiment-driven movements or regulatory shifts, gold tends to retain or even grow in value during economic downturns. 

In April 2025, gold reached a historic milestone, hitting an 

. This rally was largely driven by geopolitical tensions, including renewed trade tariffs and Middle East instability, as well as expectations of interest rate cuts by the US Federal Reserve. During times of global stress, investors often shift capital into gold to preserve wealth — a pattern that has repeated strongly this year. 

For crypto traders, gold presents a way to counterbalance the volatility of digital assets. When crypto markets dip due to regulatory news or macroeconomic shocks, gold may provide stability and a steady store of value.

Equities remain one of the most established investment classes for long-term capital growth and dividend income. In contrast to many cryptocurrencies, which are highly speculative in nature, blue chip stocks and broad indices offer relatively stable returns and are influenced by business fundamentals and macroeconomic trends.

In early 2025, Chinese stocks posted an impressive comeback, with the 

. This growth was fueled by China’s economic stimulus measures, investor-friendly reforms and optimism around industrial recovery. Sectors like electric vehicles, technology and infrastructure saw particularly strong inflows.

For crypto traders, exposure to stocks can provide a more predictable and income-generating component to their portfolio — which is especially useful during periods when the crypto market is consolidating or correcting.

The forex market is the largest and most liquid market in the world, with over $7 trillion traded daily. Unlike crypto, forex operates 24/5 (instead of 24/7), and is deeply influenced by macroeconomic policies, interest rates and geopolitical developments.

In 2025, one standout example of forex movement came from the South African rand, which 

 as gold surged past the $3,000 mark. Since South Africa is a major gold exporter, the rise in gold prices naturally supported South Africa’s local currency. This is a clear example of how commodities, national economies and forex are closely linked, offering savvy traders multiple angles for profit.

For crypto traders, forex offers the opportunity to diversify into another high-liquidity market with its own rhythm and drivers. It’s especially attractive for those looking to apply 

 across different assets or hedge macro exposure.

Platforms like Bybit provide features that make it easier for traders to add traditional assets into their portfolios. Bybit Gold&FX, for example, allows users to access gold and forex markets alongside their crypto holdings, helping them create more diversified and sturdy investment strategies. This integration gives traders the flexibility to take advantage of diverse market conditions — so they can better manage their risk.

 offers traders a powerful and versatile platform to access a wide range of global markets — from crypto and forex to CFDs on commodities and 

Built for both beginning and more seasoned traders, Bybit Gold&FX comes packed with over 90 technical indicators, customizable charting tools and support for automated strategies through Expert Advisors (EAs). Its robust order management system ensures flexibility and precision, making it ideal for executing complex trading strategies in real time.

Investors and traders who prefer a more laid-back approach can consider 

 instead, a copy trading feature on the Bybit platform that allows users to replicate expert strategies in 

 (MT5). It offers a way to diversify portfolios with traditional assets by leveraging the expertise of advanced traders, helping reduce risks tied to crypto market volatility.

How to embrace macro volatility with Bybit Gold&FX

Managing macroeconomic volatility with Bybit Gold&FX requires a thoughtful and strategic approach. The following short description will show you how traders can embrace this volatility and play the macro game in three simple steps.

Understand the broader economic forces that drive market movements, including inflation rates, central bank policies and geopolitical events. Keep an eye on key developments, such as 

 (FOMC) meetings and Federal Reserve speeches, as well as factors like political instability and trade wars that can have an impact on global markets. 

 in early 2020. As uncertainty began to spread, gold prices surged because investors saw it as a safe-haven asset. Studies found a strong link between rising global COVID-19 cases and increased gold prices, with the pandemic contributing to significantly more volatile gold returns.

Bybit offers insights into macro trends and volatility, helping traders make fact-based decisions. Tools such as

 can provide a clearer picture of current market conditions and potential shifts, allowing traders to adjust their strategies with confidence.

Diversify your portfolio with a mix of assets on Bybit Gold&FX, including gold, forex and contracts for difference (CFDs) in order to navigate market fluctuations more effectively. As a traditional safe-haven asset, gold can help hedge against crypto volatility, inflation and currency devaluation. 

Forex pairs like EUR/USD or USD/JPY offer opportunities to capitalize on global economic trends, while commodities like oil and silver add another layer of diversification. 

 allows traders to amplify potential gains in these markets without directly owning the underlying assets. However, CFD trading and leverage carry significant risks, as they can amplify both gains and losses that potentially exceed your initial deposit.

Historically, cryptocurrencies like Bitcoin have shown 

 with traditional assets like gold and stocks, meaning their relative price movements don’t always align. This weak correlation suggests that adding traditional assets to your portfolio can help offset potential losses in the crypto market.

To track these relationships, traders can use tools such as correlation matrices. In addition, platforms such as Chainalytics Labs provide 

 that map out connections between major blockchains, gold, silver and 

, an open-source tool that helps visualize the relationship between cryptocurrencies and other financial assets.

Step 3: Execute trades efficiently on Bybit Gold&FX

Bybit Gold&FX gives you direct access to global markets — all with your USDT, no fiat conversion required. As the only crypto exchange offering this unique product, Bybit Gold&FX offers fast execution, advanced charting capabilities and customizable trading strategies, enabling traders to analyze markets effectively and respond swiftly to price movements. This is especially helpful for traders looking to act on major news — such as gold’s recent all-time high of $3,167.

 and create your MT5 account, then proceed to download the MT5 platform and fund your account to start trading.

When you’re ready to start using Bybit Copy Trading Gold&FX, head to the 

 tab. Once you've selected a trader whose strategy aligns with your goals, configure your settings to 

. From there, you can automatically copy their trades and gain exposure to gold, forex and CFD markets with ease.

Bybit Gold&FX provides crypto traders with a powerful way to navigate market volatility by diversifying into gold, forex and other traditional assets. By understanding macro trends, strategically positioning across multiple asset classes and leveraging Bybit’s advanced trading tools, traders can build more resilient portfolios. 

Diversification helps you reduce risk, stabilize returns and take advantage of opportunities beyond the crypto market. Whether through Bybit Gold&FX’s advanced features or Copy Trading Gold&FX, Bybit empowers traders to adapt and thrive in uncertain market conditions. In the dynamic financial market, embracing a well-rounded investment strategy is key to long-term success.

Intermediate

trade gold&fx.png

3 easy steps to embrace macro volatility with Bybit Gold&FX

Particle Network is a Layer 1 blockchain powering chain abstraction that unifies users and liquidity across all blockchains through Universal Accounts.

 world remains divided by invisible walls that force users to manage multiple wallets and navigate complex 

 processes. Particle Network aims to tear down these barriers through chain abstraction, creating a unified 

 experience whereby users interact with any blockchain through a single account.

This article examines Particle Network's vision for chain abstraction, its Universal Accounts technology and the PARTI token, which powers this ecosystem. We'll also analyze the project's history, technical infrastructure and market position to evaluate its potential as both technological innovation and potential investment opportunity.

 powering chain abstraction. It unifies users and liquidity across all blockchains through Universal Accounts, which provide a single address and combined balance for interacting seamlessly with any chain or 

Founded in 2022, Particle Network initially focused on wallet abstraction services, allowing users to create wallets linked to their Web 2.0 social accounts. This foundational approach evolved into Particle Network’s current comprehensive chain abstraction technology, which aims to bridge the divide between traditional internet experiences and the decentralized world.

Co-founders Pengyu Wang and Tao Pan launched Particle Network in April 2022 with a vision born from their mobile gaming experience. They recognized that blockchain adoption was hindered primarily by poor user experience, and so they set out to build back-end infrastructure that would make web3 as intuitive as traditional applications.

The project quickly secured $25 million from notable investors, including Spartan Group, Animoca Ventures and Alibaba Group. This backing accelerated Particle Network’s development, allowing it to serve over 30 million wallets and integrate with more than 7,000 

The project has demonstrated rapid progress, evolving from a wallet abstraction service to a comprehensive account abstraction provider — and now, to a full-fledged chain abstraction layer. This progression demonstrates the team's agility and commitment to systematically eliminating the barriers between users and web3's potential.

What does Particle Network aim to achieve?

Particle Network aims to solve the three most critical barriers preventing web3 mass adoption. The first challenge is fragmented user experience (UX). Today's web3 users juggle multiple wallets, memorize various 

 and navigate different interfaces for each blockchain. This complexity creates an overwhelming entry barrier for newcomers.

The second barrier is fragmented liquidity. As users spread assets across thousands of blockchains and 

, they must perform complex bridging operations to use their tokens where needed. These bridging processes are confusing and time-consuming, exposing users to additional security risks.

The third obstacle is gas token fragmentation. Each blockchain demands its native token for transaction fees, forcing users to maintain small balances of various tokens just to perform basic actions. This requirement adds unnecessary complexity and costs that further discourage participation.

Particle Network addresses these challenges by creating a truly borderless web3 ecosystem. Its founders’ vision enables users to interact with any application on blockchain through a single, unified interface — without needing to understand the complex technical infrastructure working behind the scenes.

Particle Network achieves chain abstraction through its Layer 1 blockchain, which orchestrates three innovative technologies working together as an integrated system. 

 wallets that maintain the same addresses and balances across all blockchains, eliminating the need for multiple wallets and creating a unified entry point to web3.

 enables seamless cross-chain asset movement. When users interact with a blockchain in which they don't hold native assets, the system automatically routes and executes the necessary transfers behind the scenes. Users simply see their combined balance — without ever having to deal with complex bridging operations.

 completes this seamless experience by solving the token fragmentation problem: users can pay transaction fees with any token they own on any chain, since the system handles all conversions transparently. All fees ultimately settle in PARTI tokens on Particle Chain, creating a unified gas experience across the ecosystem.

This infrastructure is powered by a technical backbone of 

Particle Network's technology stack includes three innovative features working together to unify the blockchain experience.

Universal Accounts is Particle Network's flagship product. It enables chain abstraction by providing users with a single interaction point for the multichain web3 ecosystem. This feature removes the need for manual bridging, or for managing multiple wallets and assets across different networks.

When users connect their existing wallets or create new ones through Particle Network, the system assigns them a Universal Account that maintains a consistent state and balance of information across all supported blockchains.

 is the first chain-agnostic trading platform that leverages Universal Accounts. It's 100% noncustodial, and allows users to trade any token on any chain without bridging. Users can trade, send and receive assets using a unified balance for all chains, and pay for gas with any token.

The platform enables users to buy tokens regardless of their existing chain, and to view comprehensive price and on-chain data with zero 

. Users can send assets directly between any chains and purchase tokens using fiat via various payment methods. The system also provides fast confirmation times and full 

Particle Network’s Universal SDK allows developers to create and manage Universal Accounts for their users and execute cross-chain transactions seamlessly. They can implement gasless transactions for which applications cover the gas fees, leverage session keys for improved user experience and customize access control for enhanced security.

By providing this tool kit, Particle Network makes it simple for developers to build chain-abstracted applications. These applications can then offer a superior UX while leveraging the strengths of multiple blockchain networks.

Currently in its Permissioned Ecosystem phase (Q1 2025), Particle Network is focusing on building flagship applications that showcase Universal Accounts. They've already launched UniversalX, the first chain-agnostic trading platform, and plan to release two more applications targeting essential web3 use cases.

Next comes the Collaborative Ecosystem phase (Q3 2025), whereby Particle Network will partner with key players in AI, trading and 

 to expand adoption. By Q1 2026, the project will enter its Permissionless Ecosystem phase, allowing any chain or application to integrate Universal Accounts and provide users with a seamless cross-chain experience.

With a fixed supply of 1 billion tokens, PARTI serves as the economic powerhouse of the Particle Network ecosystem. The token operates at three fundamental levels: 

When users interact with any blockchain via Universal Accounts, all transactions ultimately settle in PARTI on Particle Chain. This creates continual utility and demand for the token as the ecosystem grows, without requiring users to directly hold PARTI themselves.

The token’s distribution balances immediate ecosystem needs with long-term sustainability:

This structured distribution, combined with the token's essential utility, supports sustainable growth while preventing excessive concentration of ownership.

To drive early adoption, Particle Network launched the 

, which rewards testnet participation with PARTI points. Users earn points by sending transactions, paying for gas with USDG (Universal Gas) on the testnet and completing daily check-ins. Consistent participation yields progressively higher rewards to encourage regular engagement.

Committed community members can boost their earning potential by acquiring Particle Pioneer NFTs, which increase point earnings by 2–30%. The program has gained remarkable traction, attracting over 1.7 million registered accounts and distributing more than 57 billion PARTI points.

These accumulated points qualify participants for several benefits, such as upcoming PARTI token airdrops, bonuses on the 

 and whitelist spots for ecosystem projects. The strategic distribution of points and eventual token airdrops aims to reward early supporters, while creating a broad and engaged community of PARTI holders.

Looking to trade Particle Network tokens? Bybit now offers the PARTI/USDT trading pair. To get started, you'll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Particle Network demonstrates significant promise in the chain abstraction space, investors should carefully consider both its growth potential and risk factors before making investment decisions.

PARTI shows promising potential with its comprehensive approach to chain abstraction and strong foundation of existing integrations. However, potential investors should 

 before investing, particularly given the innovative nature of chain abstraction technology.

Particle Network solves the fragmentation problem that has effectively limited web3 adoption. Instead of juggling multiple wallets, managing separate balances and navigating different gas tokens across chains, Particle Network users have a single unified account that works everywhere. PARTI powers this seamless experience, potentially becoming the crucial link that finally makes blockchain technology accessible to everyone.

particle network.png

Particle Network (PARTI): The backbone of web3 chain abstraction

You can earn yields with USDe in two ways — staking USDe via Ethena, and holding USDe on Bybit. Learn how you can make your USDe work for you in our guide.

USDe isn’t just another stablecoin — it’s a synthetic dollar that offers real rewards when held on Bybit. Whether you're a DeFi user or someone who prefers centralized platforms, USDe lets you 

 via staking or simply holding it in your exchange account. In this guide, we’ll show you how to make your USDe work harder for you.

Unlike traditional stablecoins (i.e., USDT or USDC), USDe isn’t backed by fiat reserves. Instead, it uses a smart delta-hedging strategy, essentially placing offsetting trades on derivatives markets to maintain price stability. This unique model doesn’t just keep USDe pegged to the dollar — it also creates opportunities to generate rewards from real market activity.

In addition to offering price stability, USDe allows users to earn yield through two primary mechanisms: staking via the Ethena protocol for sUSDe and passive income through 

Users can lock their USDe on the Ethena platform and receive a staked asset called sUSDe. This staked token accrues yield and functions as proof of deposit.

 that due to regulatory considerations, staking is only available in specific jurisdictions.

, you can still generate yields on your USDe holdings simply by holding the funds in your Bybit Account.

Bybit frequently offers promotions for USDe, such as 

USDe stands out in the stablecoin market due to its unique blend of capital efficiency and automated risk management. The use of delta hedging enables the Ethena USDe protocol to maintain stability without overcollateralization, while its off-exchange settlement and reserve fund architecture enhance the system’s security and resilience.

For users, USDe offers both stability and earning potential. Whether used with DeFi staking or to generate passive income on Bybit, USDe provides a versatile and yield-generating alternative to traditional stablecoins.

how to earn yields with usde.png

Make your USDe work for you: A guide to earning rewards

There are two ways you can obtain USDe — buying it on exchanges, or minting it via Bybit On-Chain Earn. Learn how you can get started here.

USDe is a synthetic dollar asset issued by 

 (ENA) that mains peg to the US dollar without relying on traditional fiat reserves or overcollateralized crypto systems. Instead, it uses automated 

 via short perpetual futures to ensure price stability. This novel architecture makes USDe a capital-efficient alternative to traditional stablecoins like Tether (USDT) and USDC, as well as decentralized stablecoins like Dai (DAI).

While users who wish to directly mint & redeem USDe with Ethena must pass their KYC and whitelisting process; KYC’d Bybit users are able to mint & redeem USDe without leaving the exchange, a first for the space. This guide explains all the ways to obtain USDe and outlines the benefits of each approach.

For users who want to mint new USDe directly, Bybit On-Chain Earn offers a secure, automated minting interface without the need for a DeFi wallet or whitelist access.

The most straightforward way to obtain USDe is by purchasing it directly from supported cryptocurrency exchanges.

Bybit is currently the leading platform for acquiring USDe. It offers the following major Spot trading pairs, enabling you to obtain USDE easily:

USDe introduces a new paradigm in the stablecoin space — a synthetic dollar that’s capital-efficient and rewarding when held on Bybit. With its peg maintained through real market mechanisms, rather than custodial reserves, USDe represents a robust alternative to traditional stable assets.

Platforms such as Bybit have made it easier than ever to obtain and benefit from USDe, whether through Spot trading, direct minting or daily redemption.

For users looking to diversify their stablecoin holdings or explore more resilient financial primitives, your USDe is now just a few clicks away.

how to obtain usde.png

How to obtain USDe: A comprehensive guide

Crypto Investment Guide

Investing

Trading

Crypto investment can be risky. Diversification is key to a successful crypto portfolio. Here's how you can manage them responsibly and grow your portfolio sustainably.

Managing-Crypto-portfolio.jpg

Many new crypto traders focus on buying just one coin. However, their crypto performance is relegated to the sentiment, development, and community behind that one project.

Building a balanced crypto portfolio can help guard against excessive losses since some projects will outperform others. Over the next few minutes, we will discuss what a cryptocurrency portfolio is, the benefits of a crypto portfolio, and tools to help you manage one.

A cryptocurrency portfolio is a basket of digital assets consisting of cryptocurrencies. Crypto investors aim to improve their risk-adjusted returns by mixing and diversifying their cryptocurrency and token investments.

 means buying and holding Bitcoin. Did you know there are over 10,000 cryptocurrencies available? It is not feasible to buy all 10,000 for your portfolio, nor do you want to. The top five largest valued cryptocurrencies make up 76% of all cryptocurrency value.

The vast number of cryptocurrencies available speaks to the future potential of crypto. Therefore, including crypto as a portion of your overall investment portfolio makes sense. 

Before we dig into methods to build your crypto portfolio, let’s tackle some benefits a crypto portfolio may deliver.

The Purpose of Having a Balanced Portfolio

Most beginning crypto investors believe buying crypto simply means holding 

 in hopes its value moves up to $1 million per coin. Buying Bitcoin is a place to start. However, you can’t run until you first learn how to walk.

As we have seen in 2021, there are times when investors favor Bitcoin and other times that Bitcoin falls out of favor. Early in 2021, Bitcoin was accelerating higher in price behind speculation of its institutional adoption into corporate balance sheets. That favorable outlook was quickly reversed a couple of months later when debates about Bitcoin’s electricity usage and resultant carbon footprint began to swell.

An investor whose portfolio consists of just Bitcoin will experience volatile market swings. 

The first benefit of a balanced portfolio is diversity. Holding onto just one coin leaves you susceptible to the ups and downs of news that solely impacts that coin. 

Another example of this dynamic is Ripple. Recently, U.S. governmental bodies were focused on whether Ripple was initially 

. Ripple sold off on the news. Cryptocurrencies are largely unregulated, and the laws around them are still being created. Therefore, investment in just one coin pins the returns of your crypto investment to the performance of that one coin.

A secondary benefit of a balanced crypto portfolio is that when you spread your investments out, you have a better shot at picking a coin that outperforms. Indeed, the reason more than 10,000 cryptocurrencies exist is that each one is trying to improve on some real-world problem with cryptocurrency. 

Bitcoin is the largest and oldest cryptocurrency and has stood the test of time. However, we don’t know if someday there will be another coin worth more than Bitcoin if that newer coin improves on a certain fundamental quality. As you research cryptocurrencies, look for those projects that have the potential to solve real-world problems. For example, 

 solution to the oracles problem could be a potential alternative that will take off one day.

Lastly, having a diversified portfolio allows you to rebalance your portfolio so it doesn’t become overweight in certain coins.

For example, let’s assume you’ve invested in three coins: coin A, coin B and coin C.

You decide to allocate 50% to coin A, 25% to coin B, and 25% to coin C. You further decide to allow the percentages to deviate by 10%. Coin A rockets higher and, as a result, is now 60% of your crypto portfolio. Therefore, you decide to sell off a portion of coin A and buy coins B and C to rebalance back to the 50-25-25 split. This way, you are using the gains from your outperforming crypto to fund the rest of your portfolio. 

Having a balanced crypto portfolio means you’re halfway to creating a sustainable portfolio. Investing in digital assets is relatively new, with a lot of intimidating terminologies.

Take the time to learn and analyze them fundamentally before diving headfirst into the water. If you are ready to build, here are five foundational pillars to help you strive toward that balance and to manage your crypto portfolio. 

Many investors might not have a large lump sum that they can transfer from traditional investments into a crypto portfolio. Therefore, making regular small investments from your income cash flow, regardless of crypto prices, is a great way to build up your portfolio. As a result, dollar-cost averaging is one of the best trading strategies to build your portfolio that works in both up and down markets.

 (DCA) is an automatic system of making fixed dollar amount investments, regardless of a token’s price. By entering the investment in regular increments, you are smoothing out the anxiety resulting from imperfect timing. If the price of the cryptocurrency moves higher, you can add more shares in a strong bull market. If the price of the cryptocurrency moves lower, you will be able to add even more shares as your investment amount in fiat terms remains fixed.

One of the biggest advantages of the crypto economy is the decentralized nature of many coins. As you build your portfolio, you may have to deal with several different wallets, exchanges, and platforms, allowing you to take advantage of promotions. As a result, it can be cumbersome to manage your crypto portfolio across these wallets and trying to remember which cryptocurrency is where.

Crypto portfolio trackers are a way to solve this problem. A crypto portfolio tracker is a software that reads your wallets’ data and displays the aggregate information into a dashboard for you. Portfolio trackers make it easy for you to keep up with how much you have invested in each cryptocurrency. If one cryptocurrency is outperforming another, you’ll see it gaining a larger percentage of your overall portfolio.

Also, most portfolio trackers allow you to trade across many crypto exchanges, including Bybit, from their service. These trackers provide an additional convenience in that you do not have to log into each exchange account to make your trades. However, that convenience typically comes with a fee.

Another important benefit that crypto portfolio trackers provide is in tax planning and preparation. For example, in the United States, cryptocurrency holdings are treated as property. Therefore, a taxable event is triggered on the sale of crypto. A cost basis for the crypto holding is needed to accurately assess the tax implication. Even situations such as interest gained from staking alter the coin’s cost basis. As a result, an active crypto trader will generate a lot of transactions that need analyzing for tax purposes. A crypto portfolio tracker can help organize these transactions for record-keeping.

Crypto portfolio trackers come with a variety of features, but choosing one doesn’t have to be difficult. 

 Determine what convenience the tracker provides and what problems it will solve for you. Don’t forget about the time spent organizing your trades for determining your tax liability.

 Look into the app’s safety and security. Many crypto portfolio trackers link to crypto exchanges, and it is crucial to protect your coins.

 Practice makes perfect. Many trackers offer free trials so you can play around with them for a while.

 Look for a simple, clean, and clear layout. You don’t want to spend a lot of time trying to figure out how to use your portfolio tracker. An intuitive design will help make it easier for you to manage your crypto portfolio.

Now that you know what to look for, here are several portfolio trackers that may be of interest to you.

Crypto prices can be extremely volatile, with wild swings to both the upside and downside. Additionally, blockchain technology — which cryptocurrency fuels — is a relatively new technology and truly exciting. However, don’t let all of the hype put your emotions into overdrive.

Fear of missing out (FOMO) is a major reason why traders fail at portfolio management. Emotions usually lead to buying an asset at high prices, only to see a large correction take hold. Also, we can become anxious when the market drops 30% — because we are uncertain if that correction will dig deeper and become a 70% correction.

Successful crypto traders or investors are always rational about their plans and goals. There will still be good investment opportunities to grow your total portfolio balance. Using 

eradicates emotions and helps you foster more discipline trading strategies. All you need is just stick to the plan.

Every good plan must include an exit strategy. Science tells us that whenever our trades are winning, dopamine is released from our brain, making us feel good about our decisions. 

Absent an exit plan, that good feeling will cause us to stick with the position as a feedback loop kicks off. More gains lead to more dopamine, and more dopamine causes us to hold on to the trade. Then, if the market collapses, we hope it will bounce back. In a best-case scenario, the crypto market rallies again. But there’s also a worst-case scenario: the correction keeps going further and further.

Every great trend eventually ends. Sure, strong trends can last a lot longer than people anticipate. But eventually, the trend becomes oversaturated, and it changes.

A good trader is going to think about their exit plan BEFORE they enter a trade. This way, it is clear at what price they’ll close out the trade for a profit, and at what price they’ll close out for a loss. Again: stick to your plan.

A good portfolio management strategy includes diversifying your investments. You’ve heard the saying about not placing all of your eggs in one basket. In case the basket was to fall, you don’t want to lose all of your eggs.

A lot of hype surrounds fast-moving, high-performing cryptocurrencies. Some of the hype is warranted, as certain cryptos do have a promising future and solve real-world problems. Other cryptos solve real-world problems as well, but our world is still dominated by traditional business and finance. 

Two highly volatile and uncorrelated crypto assets can smooth each other out, providing outstanding risk-adjusted returns. The bad news is that a lot of cryptocurrencies are correlated to each other. Therefore, while diversifying your crypto portfolio can be challenging, it is still possible.

First, plan out a base for your portfolio. Which cryptocurrencies have large market capitalizations, leading to strong future potential? Second, consider investing a portion of your portfolio into stablecoins that you can lend out for a high-interest rate. Adopting a portion of your portfolio to act as a high-yield savings account means that a portion of your portfolio will always be gaining — even in a down market.

Third, consider small amounts invested into small high-growth projects. These projects may still be correlated to the gains and losses of the broader crypto market, but if one of them takes off, the additional growth may bump your portfolio’s overall value higher.

Do your research by reading up on the fundamentals of a cryptocurrency’s native token. Sometimes, the current price does not reflect the true value the token brings to the crypto economy.

If you are going to invest, how much is too much? Here are some of the suggestions from financial coaches:

 Invest less than 10% of your portfolio in crypto.

, says that “investors should have no more than 10% of their overall portfolio invested in crypto.”

Dan also notes that you can’t use crypto to pull you out of huge debt piles. If your cash flow isn’t stretching to the end of the month, cryptocurrency isn’t the solution to that problem.

, says “a classically oriented investor should keep the risk of highly speculative assets small. Depending on the risk profile, 1–5% of the portfolio is useful for physical exposure to cryptos.”

Salah-Eddine also notes that risky investors may use up to 20%, but that risk becomes extremely large and the portfolio is exposed to great volatility.

 revealed Vrishin Subramaniam, founder, and financial planner at CapitalWe, adds, “Two to 3% is usually what we see for most clients who are not tracking crypto markets more than once a week.”

Subramaniam recommends these conservative numbers as part of a wait-and-see strategy until we know more about the long-term performance of crypto.

Building your crypto portfolio doesn’t have to be complicated. However, it does require a plan and perhaps some help like a portfolio tracker. Even if you don’t have the excess cash to invest now, you can use dollar-cost averaging to build up a balanced portfolio. As with any investment, you will want to research the fundamentals behind an asset before buying. Your portfolio value often derived from how well you manage your crypto assets.

How to Manage a Crypto Portfolio Successfully (5 Easy Ways)

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards