Are You diversified in crypto?

If you’re already invested in stocks, index funds and Bitcoin, are you diversified? Your portfolio has some diversification, but your crypto assets don’t. Diversifying in crypto means investing in a range of crypto projects, rather than having everything in one or two.

Is portfolio diversification an efficient risk-mitigating approach to crypto investment?

Due to the excessive volatility of the crypto market, it is imperative to adopt efficient risk management techniques. As discussed in this guide, one of such practices requires a dynamic approach to fund allocation. When done right, portfolio diversification is an efficient risk-mitigating approach to crypto investment.

What is cryptocurrency used for?

Cryptocurrencies are used as a medium of exchange, but they are not limited to transactions in exchange for goods and services. Bitcoin, for example, can also be used as a store of value, or a means to preserve and grow wealth, since it has produced outsize returns for investors.

How to invest in crypto coins?

You can invest in crypto coins in industries like finance, supply chain, and medicine. Note that you can also diversify further by using a specific criterion when choosing the cryptos you want to invest in. For instance, you can mix new projects with well-established or alternatively direct your funds into one category.