The BitPinas Webcast invited Certified Technical Analyst Joseph Lejarde, aka Whizkid Trader, and PDAX Community Lead Trexia Olaya, aka Prof Trex, to discuss portfolio diversification and startup investment strategies.
This article was made in collaboration with PDAX, which offers not only crypto trading, but also bonds and NFTs. Check out PDAX to learn more.
What is portfolio diversification?
Olaya: Diversifying assets across various investment opportunities reduces risk. “Don’t put all your eggs in one basket” to avoid losing everything if one investment fails. Lejarde: A diversified portfolio mitigates risks and reduces psychological stress. If one investment fails, others can compensate.
What should a startup portfolio look like?
Lejarde: Assess your risk profile—aggressive, conservative or moderate. Younger investors can take more risks, while older investors should focus on safer investments. Olaya: Startups should stick to what they know and understand the technology behind their investments.
Ensure the right decisions in diversification
Olaya: Join a community for guidance on avoiding scams and making informed decisions. Lejarde: Understand the asset, issuing company and market conditions. Take care of your investments as your future depends on them.
Monitoring and Rebalancing Portfolio
Lejarde: Review your portfolio daily to avoid significant losses. Treating portfolio management as a daily hobby helps spot problems early.
Common mistakes in building a portfolio
Lejarde: Avoid hearsay, research well, diversify properly and treat trading seriously. Olaya: Diversify correctly according to your risk profile and maintain a trading journal to avoid emotional decisions and mistakes.
PDAX’s Multi-asset Offer
Olaya: PDAX offers spot cryptocurrency trading, an NFT market called Mintoo, and signature treasury bonds. Different investment options cater for different investor interests and risk profiles.
Olaya then shared that PDAX will release a journal that can serve as a guide for traders to start and build their financial portfolio.
As of this writing, aside from offering spot cryptocurrency trading, PDAX also has its own NFT market called Mintoo (https://www.mintoo.ph/).
“There are different types of investors. May you use in crypto trading, so there are people who like in NFT flipping. If you like it, that’s fine, it’s another interest,” she explained, explaining how NFTs can fit into a portfolio.
NFT Flipping is the crypto trading version of NFTs. Technically, a flipper will buy an NFT at a low price and sell the asset once it has a high value.
To buy NFTs in PDAX:
Step 1: Go to the Collectibles tab. Step 2: Select the NFT you want to buy. Step 3: Confirm the transaction. Step 4: Hold the asset. Step 5: Sell the NFT in secondary market.
In addition, PDAX also offers bonds. In 2023, the Philippine Bureau of Treasury (BTr) approved the sale of tokenized treasury bonds on the blockchain, enabling PDAX to offer these tokenized bonds on its platform.
Treasury bonds are fixed interest government bonds with a fixed maturity period. Issued by the BTr, they play a decisive role in the funding of the executive department’s projects and programmes. Essentially, buying a bond means lending money to the government in exchange for a predetermined interest rate.
The interest rate of bonds is annual. If you have long-term savings and don’t know where to take them, it’s better to go with bonds first. The good thing about PDAX is that you can unlock your bond investment after three months. If you are someone whose financial goal is only short-term, go for the three months. We also have TRB 30 bonds, which are for a long-term lock-in of five years,” Prof Trex highlighted.
To invest in bonds in PDAX:
Step 1: Go to the Bonds tab. Step 2: Choose the bond you want to buy. Step 3: Enter the desired amount to be invested. Step 4: Hold the asset. Step 5: Withdraw the token once the expiration date is reached.
Finally, PDAX also has its portfolio feature, where the user can see the assets they own and how much their overall portfolio is performing.
This article was published on BitPinas: Beginner’s Guide to Portfolio Diversification | Webcast 51
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