Dan Bilzerian, the popular social media celebrity and professional poker player, has a diversified portfolio of cryptocurrencies, with funds evenly spread out amongst the most valuable digital currencies in the market. 

               “For everyone asking, i have 50% Bitcoin, 25% ETH, 15% Monero and 10% Bitcoin Cash,” said Bilzerian. 

                                                                        

                                   Merits of a Diversified Portfolio of Cryptocurrencies 

    As bitcoin and security expert Andreas Antonopoulos explained, it is favorable to maintain a diversified portfolio of cryptocurrencies rather than allocating all of the capital into a single digital asset for risk minimization. 

 I own a few different crypto assets as part of a small but diversified portfolio. I only risk as much as I’m willing to lose,” said Antonopoulos. 

 Bilzerian is using a similar approach to that of Antonopoulos’ personal investment method, of investing in a wide range of cryptocurrencies with different use cases. For instance, bitcoin is widely acknowledged as a robust store of value, Ethereum as a network for decentralized applications, Monero as an anonymous cryptocurrency, and Bitcoin Cash as a digital cash system. 

 All four of the cryptocurrencies which Bilzerian has invested in have distinct but unique use cases. Cryptocurrencies like Monero, Zcash, and Dash are fundamentally different from bitcoin and Ethereum, as they provide privacy and anonymity to their users. Hence, the three privacy-focused cryptocurrencies serve an entirely different market than bitcoin, Ethereum, and Bitcoin Cash.