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Analyst Shares Long-Term Portfolio Allocation for Crypto Investments

Crypto Michaël, CEO and founder of MN Trading, a crypto enthusiastic community, has gone to Youtube to offer insights on building and sustaining a long-term cryptocurrency investment strategy. Emphasizing the significance of spreading investments and managing risks, he suggested that every investor should maintain a long-term investment portfolio that covers several years. He added that the portfolio should comprise around 70-80% of the total assets.

Pseudonamed Crypto Michael, Michaël van de Poppe was vocal about not relying solely on a trading portfolio. He suggested broadening investment areas into stocks, ETFs, bonds, and other commodities, thus not putting all eggs in the cryptocurrency basket.

Diving deeper into how market cycles operate, Michaël explained that this is the ideal period for investors to gather cryptocurrencies. Using Bitcoin and Ethereum as references, he elaborated on how the markets have been oscillating over the past year. He suggested that these market cycles provide a golden opportunity for investors to buy and hold.

Additionally, giving his 162K subscribers a glimpse into his portfolio, Michaël revealed that his holdings comprise five cryptocurrencies – Bitcoin, Ethereum, Chainlink, Polkadot, and Cosmos. He advised that Bitcoin should hold the lion’s share of the portfolio, followed by Ethereum. The other three should have a lesser allocation owing to their associated risks.

Sharing his personal investment strategy, Michaël recommended allocating 35% of one’s portfolio each to Bitcoin and Ethereum and 10% each to Chainlink, Polkadot, and Cosmos. According to him, this arrangement offers a balanced mix of risk and potential returns.

A noteworthy point in Michaël’s discussion was the importance of portfolio rebalancing. He advised shifting some of those investments into other asset classes if the crypto holdings grow from 30% to 70% or 80% of the total portfolio. According to him, rebalancing the portfolio frequently helps maintain the desired allocation levels.

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