Should you diversify your crypto portfolio?

For traditional investors, crypto can be a valuable way of diversifying your portfolio of stocks and bonds. For crypto investors, be sure to heavily diversify beyond crypto. Diversification–when done right–allows you to reduce your portfolio’s risk while keeping your expected returns high.

How do I diversify my portfolio?

To achieve a diversified portfolio, look for asset classes that have low or negative correlations so that if one moves down, the other tends to counteract it. ETFs and mutual funds are easy ways to select asset classes that will diversify your portfolio, but one must be aware of hidden costs and trading commissions. What Is Diversification?

Should you invest in a good offense or a diversified portfolio?

By the time an average investor "reacts" to the market, 80% of the damage is already done. Here, more than most places, a good offense is your best defense, and a well-diversified portfolio combined with an investment horizon over five years can weather most storms. 1. Spread the Wealth

How is risk measured in a diversified portfolio?

A diversified portfolio's risk is measured by its total standard deviation of returns. The larger the standard deviation, the greater its expected riskiness. Investing can and should be fun. It can be educational, informative, and rewarding.