Why is Portfolio Management Crucial in Crypto Investing? | by Muhamad Yusup / Cupi Crypto | The Capital | Feb, 2025
Protocols such as risking only 1% per trade, allocating 70% of a portfolio to Bitcoin, and reserving a portion for stablecoins may indeed impart an impression of protracted progress. However, there exist compelling rationales elucidating why the implementation of judicious portfolio management transcends mere optionality, assuming a role of paramount importance.
An irrefutable axiom within financial markets, particularly pertinent to the cryptocurrency sphere, is the inherent ambiguity of future market movements. No individual, irrespective of expertise or analytical acumen, possesses prescience regarding the definitive trajectory of market dynamics, either in the immediate diurnal horizon or extending into the temporal expanses. Consequently, the pursuit of definitive market prediction constitutes an exercise in futility.
The pragmatic recourse available to market participants resides in the diligent execution of informed conjecture pertaining to potential price fluctuations, predicated upon rigorous analytical methodologies and comprehensive due diligence. This epistemic endeavor, however, remains intrinsically probabilistic, inherently circumscribed by the exigencies of market volatility and exogenous variables…
