Home Finance News Risks Managed Diversified Cryptocurrency Portfolio Consists of Bitcoin (BTC), Ethereum (ETH), and Other Assets

Risks Managed Diversified Cryptocurrency Portfolio Consists of Bitcoin (BTC), Ethereum (ETH), and Other Assets

Crypto Portfolio Diversified
  • Capital Markets Where Investments and Savings Flow
  • Retail and individual investors
  • Buying and Keeping Track of Popular Digital Assets
  • Careful Selection of Mixed Asset Types

Capital Markets are places where investments and savings flow between people who need capital and people who have capital.  Those who have surplus capital choose to invest.  There are retail investors and institutional investors who supply the capital to the market.

Retail investors are individual retail traders who purchase assets like stocks, bonds, securities, mutual funds, and exchange-traded funds (ETFs).  The capital market is the place from where companies raise funds to further their operations.

Building a cryptocurrency portfolio involves buying and keeping track of popular digital currencies and applying the fundamentals of investing.  Risk-adjusted returns in cryptocurrencies are about the diversification of asset types.

When analyzing the investment criteria for digital assets, users need to evaluate the potential of the investment. Investing in cryptocurrencies is a bit different from investing in other asset classes.  If the cryptocurrency investment portfolio should work a long way, investing in cryptocurrencies with solid fundamentals should be invested.

The usability supported by the token and the number of users should be taken into consideration.  If the product is beneficial, it would have already attracted a lot of users. Innovative technologies that solve real-time problems will have long-lasting users.  People are those who add to the value of the product—the more valuable the product, the more users.

Investors need to gain incentives, and there needs to be proper systems and processes in the governance.  The coin generation process like mining, PoW, PoS, and relative incentives should be investigated. The total addressable market is to be taken into consideration.

Investing in 3 to 7 cryptocurrencies after careful selection of asset types is a good way to start. There are different types of cryptocurrencies – Major Currencies like the Bitcoin and Ethereum known as core assets; Zombie currencies like Bitcoin cash (BCH), Ethereum Classic (ETC), Litecoin (LTC); Platform Cryptocurrencies like Ripple (XRP), NEM (NEM), NEO (NEO) Dash (DASH); Anonymous cryptocurrencies like ZCash (ZEC) Monero (XMR); Protocol Coins like EOS (EOS), IOTA (MIOTA), MaidSafe (MAID), BAT Token (BAT) and several other tokens.

When it comes to cryptocurrencies, it is always DYOR.  Close scrutiny is required to ensure you are not dealing with scam exchanges.

A safe cryptocurrency investment portfolio consists of Major, Tier 2 asset platforms, Anonymous/privacy/ ZKPs, coins built on top of Ether, build on top of IoT, etc.

The nature of the cryptocurrency market is dynamic.  Investment principles can be taken from there, and based on changing trends, investors should tweak and diversify their portfolio.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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