Blockchain and Cryptocurrency Advancced - About Crypto Investment

In the world of cryptocurrency, investment is one of the main activities carried out. The term investment is basically the act of putting in a set capital into a particular asset(s) with the sole aim of making profit. Crypto investment is basically the act whereby an individual who is an investor makes use of a set amount of capital to purchase a particular cryptocurrency asset or assets so as to make profit in either short, medium or long term.

When it comes to cryptocurrency investment, market capitalization is key. There are 3 types of market capitalization that cryptocurrency assets fall into – Large market capital, mid market capitalization and low market capitalization. Large capital cryptocurrencies are basically cryptocurrencies that have a market capitalization of $10 billion and above. Mid capital cryptocurrencies are basically cryptocurrencies with a market capitalization of $1 billion to $10 billion. Low capital cryptocurrencies are basically cryptocurrencies with a market capitalization of below $1 billion.

Market capitalization is key when it comes to crypto investment and it can greatly determine how much ROI can be made from the investment. That is why a lot of investors make their investment decisions based on the market capitalization of the cryptocurrency assets they are investing in. For instance, an investment in large market cap cryptocurrencies would most likely yield less ROI compared to the high ROI that is possible in low market cap cryptocurrencies. However, the risk level is low in large market cap cryptocurrencies compared to the high risk level in low market cap cryptocurrencies.

When it comes to investing in cryptocurrencies, the smart investors usually have an investment portfolio which comprises of the different cryptocurrency assets. Each investor have their different strategies for their investments. For me, it is important to have a good investment portfolio that comprises of the different crypto assets. I like to invest in large market cap, mid market cap and low market cap cryptocurrencies to make up my investment portfolio. As an investor, I always allocate different percentages to different crypto investments based on their market cap. For me, 50% usually goes into large market cap cryptocurrencies, 35% goes into mid market cap cryptocurrencies and 15% goes into low market cap cryptocurrencies.