How to Build the Best Crypto Portfolio Allocation in 2022
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Creating a diversified crypto portfolio is crucial, considering how volatile and speculative this trading industry is.
In this regard, a well-diversified portfolio should contain a wide variety of crypto assets across many different niche markets. The purpose of this guide is to explore the best crypto portfolio allocation for risk-averse investors.
Holding a diversified portfolio of cryptocurrencies will ensure that investors avoid becoming over-exposed to a small number of coins. This means that if one project doesn't quite perform as well as expected, other coins within the diversified portfolio could help cover the losses.
Therefore, the overarching purpose of crypto portfolio allocation is to spread the risk across many different projects. First and foremost, investors should ensure that their portfolio allocates funds to established, large-cap cryptocurrencies.
Bitcoin and Ethereum represent good options here. At the other end of the scale, investors might also wish to allocate funds to newly launched projects with a smaller market capitalization. This offers investors the opportunity to target higher gains.
Examples here include the likes of Tamadoge - a newly launched P2E crypto gaming ecosystem that recently raised $19 million in presale funding. Another angle to take is to diversify into other crypto asset markets entirely, such as relevant stocks or even interest accounts.
Ultimately, the key takeaway is that the more high-quality assets there are in a portfolio, the more risk-averse it is in the long run. Just remember, even allocating a small amount of capital to
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