Cryptocurrencies have gained traction across Africa because of their many use cases that could revolutionise the financial economy. Nigerians are at the forefront of the crypto revolution. They have come to use crypto to protect against naira devaluation and inflation, send money across borders, as an investment strategy and more. In fact, recently, Lagos and Ibadan were listed as one of the 50 major crypto hubs worldwide.
Regardless of why you may have started your crypto journey, having a well-diversified crypto portfolio allows you to minimise risks and losses. Crypto diversification is a novel way of saying, “do not put all your crypto eggs in one basket.”
So are you interested in building a sustainable and profitable crypto portfolio? In this article, you’ll discover why diversification is important and how to build a profitable crypto portfolio in Nigeria.
What is a crypto portfolio?
A crypto portfolio refers to the collection of cryptocurrencies a person holds. A person could hold an extensive portfolio of bitcoin, Ethereum, Solana, Tether, Cardano and more. Cryptocurrencies are highly volatile, and diversification gives you a well-rounded crypto portfolio with minimal risks.
Why You Should Diversify Your Crypto Portfolio
Diversification is one of the oldest investment strategies and has proven to minimise the risks of investments. Variety is the spice of life, and with diversification, you get to enjoy the best of over 5000+ cryptocurrencies in existence. Here’s why your diversifying your crypto portfolio is in your best interest:
- Reduce the impact of price volatility: Cryptocurrencies are highly volatile, and many traders have suffered losses from downward price trends. Diversifying your crypto investments allows you to invest in different cryptocurrencies and assists in stabilising the overall value of your portfolio, especially during market turbulence.
How? When the price of a crypto asset is lower, but you have been able to spread the investments, you can profit from the price gains of others. At the same time, it minimises risks because if you pour all your investment into only one coin and it fails, you won't have an alternative to back on.
- Long-term investment: While cryptocurrencies offer short-term profits, long-term profits allow your financial security in retirement. Over time, you can accumulate multiple profit streams with a well-diversified crypto portfolio. If you invest in one crypto and it fails or doesn’t turn in more profits, you will have other coins in your portfolio to rely on in the long run.
- Explore the crypto space: The crypto space is broad, with several cryptocurrencies offering multiple use cases. Diversifying your portfolio allows you to enjoy the maximum potential of cryptocurrencies. For instance, you can save in USDT, trade Bitcoin, and enjoy the metaverse with Cardano.
The secret to success in the cryptocurrency world is, indeed, diversification. However, deciding to diversify your crypto portfolio is just the first step. In addition to that, you need to choose a secure and trusted crypto exchange that allows you to manage your crypto portfolio easily.
Yellow Card is a favourite crypto exchange for Nigerians because its easy-to-use app lets you easily buy crypto and manage your crypto portfolio. You can buy crypto easily with naira and sell, send, or receive crypto from your home at zero fees.
How To Buy Multiple Coins On Yellow Card
- Sign up on Yellow Card for free
- Fund your wallet
- -Click on “Deposit.”
- -Select the Payment method- Peer to peer
- -Indicate the amount you wish to deposit. You can deposit as low as N500.
- -Click on “Find a Match” and follow the prompts to fund your wallet with Peer to
- Buy your choice of cryptocurrency
- -Once your account is funded, select “Crypto” on your dashboard.
- -Select your choice of crypto from the list of coins displayed.
- -Click on the “Buy” button.
- -Enter the amount you want to buy in naira or USD and confirm the order. That’s
- Manage Your Portfolio
- -Click on “Wallet” on your dashboard. You’ll find the list of cryptocurrencies you
- have bought.
- -Once you click on any of the coins, Yellow Card displays a live price chart on
- your screen where you can check the equivalent of the coin in naira or USD.
- -You can easily sell, trade or hodl your cryptocurrencies. You can also send and
- receive these cryptocurrencies by clicking “Send” Or “Receive” in your wallet.
How to Sell Your Crypto on Yellow Card
Using Yellow Card in Nigeria simplifies buying or sending cryptocurrency and lets you receive, sell, and withdraw crypto easily.
- Log in to your Yellow Card account.
- Click on “Wallet” and select the coin you wish to sell.
- Indicate the amount you wish to sell and confirm the transaction
You can then proceed to withdraw the funds by:
- Click on the withdraw button
- Select Peer to Peer method withdrawal
- Indicate the amount you wish to withdraw
- Follow the prompts to withdraw the amount you wish into your bank account
- The amount withdrawn will reflect in your bank account once the transaction is confirmed.
Remember, the funds in your wallet are yours alone, and you can choose to withdraw the funds at any point.
Should you diversify your crypto portfolio?
Diversification is a wise investment strategy that allows you to minimise the risks of loss as you continue your crypto journey. Although the profit margin or returns may be smaller when you spread it among several currencies, you can maximise profit by doing adequate research before investing in any coin.
You can start building a profitable crypto portfolio by buying some coins on Yellow Card. You can either hodl, sell, send or receive your crypto at zero fees.
Get Started With Your Crypto Journey Today! Discover Amazing Cryptocurrencies on Yellow Card