What is a crypto portfolio?

There are a few leaders in the crypto world, as measured by market cap, including Bitcoin, Ethereum, Cardano, Dogecoin, and Litecoin. A crypto portfolio may contain one or more of these cryptocurrencies, in addition to some of the countless other smaller currencies that are available and have much smaller market caps.

What is a medium-risk crypto investor?

A medium-risk crypto investor might elect to allocate just 50% of their portfolio to large-cap coins. As noted above, just six crypto assets carry a large market capitalization, excluding stablecoins. The investor might elect to hold 50% of their large-cap crypto investments in Bitcoin, with the balance spread out across the remaining five tokens.

What is crypto investing and how does it work?

This means that instead of investing the entire capital in one lump sum, the investor will split each crypto asset purchase over an extended period of time. For example, let's say that the investor has $5,000 that they wish to allocate to their portfolio

What is crypto diversification and why is it important?

The ultimate goal of diversification is to reduce the volatility of the portfolio by offsetting losses in one digital asset with gains in another digital asset. Therefore, when a crypto portfolio is well-diversified, ideally, investments with a strong performance compensate for the negative results from poorly performing investments.