Thread by @leilanibabiez

In the bear market, as I've always mentioned, it's the perfect time to expand knowledge, accumulate funds, and build a long-term investment portfolio.

So how can we effectively manage your crypto longterm portfolio?

Check out my tips as below:
🧵 👇🏻

📌 This thread will conclude with:

Part 1: Project Selection Process

Part 2: Top 3 Portfolio Management Tools

Today, we will begin with Part 1.

Part 1: Project (PJs) Selection Process

▪️ The PJ selection process, done by the PJ #portfolio manager, evaluates PJs ideas in terms of benefits and ensures alignment with overall strategic goals.

▪️ Effective PJs selection for long-term investment leads to better #ROI

📌 6 #Indicators for selecting potential PJs for long-term #holding:

1️⃣ Market Capitalization (MC)

▪️ One of the crucial indicators to consider is MC, the total value of the PJ.

▪️ It’s simple but important.

▪️ PJ with a higher MC may be more stable, but may not provide an attractive ROI compared to a PJ with lower MC.

▪️ Low MC with high growth potential can be a good long-term option.

▪️ Additionally, MC can be combined with other indicators to determine which PJ is undervalued.

2️⃣ Utility

▪️ Utility is a crucial key to the existence of a token/project.

The more utility a #token has, the longer and more sustainable its lifespan becomes. This also leads to increased demand and popularity, as it incentivizes token hoarding.

We can recall the significant surge in Doge's price $DOGE when Elon Musk announced its acceptance for payments.

What problem does the project solve? Having a clear answer to this question will clarify why it should be used.

▪️ Invest in tokens with clear and useful purposes for higher #ROI.

▪️ On the other hand, a PJ with limited utility may not have sustainable growth potential.

▪️ Therefore, it is important to evaluate the utility before investing in it for the long-term.

3️⃣ Number of users

▪️ The potential for long-term growth in a PJ can be gauged by the number of users it attracts

▪️ PJ that boasts a large and engaged user community is likely to be successful and see long-term adoption.

▪️ However, it is important to consider the quality of the user base as well.

▪️ A smaller yet committed group of users can also drive sustained growth and higher returns. One of the most prominent examples is @Cardano $ADA, which boasts an incredibly loyal user base.

4️⃣ Revenue

▪️ When choosing a PJ for long-term investment, it is crucial to take #revenue into account.

▪️ A PJ that has a stable and sustainable revenue model is more likely to yield a consistent return on investment and is generally the most favorable option.

▪️ Therefore, when investing in a token within the #crypto space, it is crucial to evaluate the PJ revenue streams and confirm their viability to support sustainable growth in the long term.

5️⃣ Team members

▪️ In addition to other criteria, it's essential to consider the expertise and skills of the PJ team when embarking on a long-term investment.

▪️ A team’s track record and industry experience can greatly influence the outcome of the PJ.

▪️ Therefore, potential #investors must conduct background research on the team's credentials and achievements before committing to a long-term investment.

6️⃣ Investors, backers

▪️Investors & backers bring valuable insights to a PJ long-term potential. Their expertise and experience drive detailed assessments and evaluations.

Strong financial capabilities enable investments in marketing, product development, and generating buzz.

▪️ Projects with reputable investors have higher chances of success and sustained growth.

▪️ Moreover, if a project is backed by top-tier VCs like Binance Labs or Coinbase Ventures, it can attract greater attention and is expected to have a higher potential for growth.

📌 Conclusion

▪️ To achieve successful long-term portfolio management, it is crucial to prioritize effective project selection.

▪️ By carefully evaluating these indicators, investors can make informed decisions that maximize ROI and facilitate sustainable growth.

Just a basic guide on choosing & managing investment portfolios here. But in reality, it's all about mixing this approach with fresh insights to create your own badass portfolio.

Sharing Part 2 & my personal portfolio soon, hope it helps!