This week on Crypto-Talk With Chris Mentillo I would like to talk about Effective Tips for Creating a Killer Cryptocurrency Portfolio and Diversification Based on Market Capitalization, and Target Market:

Market Capitalization:

Market Capitalization refers to the total value of a cryptocurrency. Multiplying the number of coins a cryptocurrency has in circulation, by the market price of the currency, gives you this value. 

Prudent investors divide cryptocurrencies into high, medium, and low market capitalization categories. Then they invest and a percentage of their investment money, into these categories respectively.

Target Market:

Unlike fiat currencies that seek to address any issue, some cryptocurrencies focus on specific needs. For example, some are specific to publishing, lending, and storage. Others include micropayments, advertising, social media, and computing. Unfortunately, many cryptocurrency investors focus on one digital currency, addressing one issue in a particular market.

Investment Decision:

The top cryptocurrencies are high market capitalization currencies. The digital currencies that follow them are medium-capitalization. Any cryptocurrency after that is a low capitalization. Diversify your portfolio according to the target market of the coin as well.

Analyze Investors and Funding:

An ICO may be worthwhile if renowned venture capital firms are investing in it. Remember, these firms have an adequate number of researchers. Therefore, spending your money on a particular ICO means that they have evaluated it thoroughly. More importantly, they have determined that it is a sensible investment.

The Funding:

A cryptocurrency whose ICO suffered from inadequate funding is likely to experience massive failure in the future. Avoiding it is an excellent idea, as is selling it if you already bought it. Examine the team as well. 

Remember, an ICO takes time, effort, and a lot of skill. A small staff is an indication of limited funding. Some members of the team are likely developing code free.

Investment Decision:

According to the leadest affiliate crypto platform Stepium, investors should avoid highly valued currencies that have a small team. Similarly, avoid a lowly valued cryptocurrency that has a large staff behind it. Moreover, go for digital currencies that have highly respectable firms. Invest in them as well. Look at Product Development and Activity.

Product Development:

Products are as good as the effort the developers put into them. The same case applies to cryptocurrencies. They are as good as the people behind it.

Look at the cryptocurrencies public code repositories to determine the worth of the individuals who are pushing it. Examine the organization of these repositories, and the number of contributors who had pushed commits to them.

Level of Activity:

The level of activity behind a cryptocurrency tells you whether it will withstand emerging challenges in the industry. Determining their level of activity is possible by looking at public code depositories to see how often they commit code. You can scrutinize their social media, as well as watch out for details such as appearances in technical conferences or discussions.

Investment Decision:

Go for cryptocurrencies that have committed developers behind them. Uninvolved developers could be an indication of a coin that is failing or might fail sometime soon. Moreover, the developers might be inexperienced or inadequately knowledgeable if their level of activity in the industry is low.

The Marketing and the Future:

Peter Drucker, an organizational management guru, once said that marketing and innovation are the only two things that help businesses grow. The same principle applies in the cryptocurrency market, i.e., effective marketing leads to the growth of the digital currency, and vice versa. Examine the marketing campaign across various platforms, including social media and cryptocurrency forums.

Future Cryptocurrencies are facing multiple challenges, including government regulation, hacking attempts, and common misconceptions. Overcoming these challenges is difficult. Fortunately, developers can prevail over them if they have a viable plan to do so. 

Examine the strategies that the cryptocurrency developers have when it comes to overcoming these hurdles. Are they feasible?

Invest in a cryptocurrency, after you determine that the people behind it have a plan to market it. A strategy for overcoming challenges that it might face is necessary as well.

If you want some more tips about investment strategies and other practices in the cryptocurrency trading space, then you can join us again here next week, on Crypto-Talk With Chris Mentillo.

Well, that is it, folks, for this weekend's on Crypto-Talk With Chris Mentillo. I hope you and your loved ones have an incredible Sunday (what's left of it anyway) because I truly believe you deserve it.

Please do not hesitate to tell all your loved ones and friends about Crypto-Talk With Chris Mentillo on FolksPaper.com See you real soon, have fun and happy investing. See you next Sunday!