How mixed is your cryptocurrency portfolio?

 

Investors especially newbies often fall into this trap of chasing after high flying coins. This is not bad on its own but you need to also consider the other side of things. That coin that is moving so fast upside can also move so fast downside.

In order to guard against the sudden lost in value of your portfolio, it is advised that you review your portfolio from time to time to make sure that it is diversified.

How do you diversify your crypto portfolio?

You can achieve this by having a mix of several coins including Bitcoin in your portfolio. Those coins that hardly change in value in a sporadic manner but rather do some gradual and incremental growth over time, are stable coins that must be in your portfolio. Let us look at these scenario:

Scenario

Volatile coins

Do you know that Digibyte did more than 200 percent yesterday? Do you also know that Bytecoin did almost 200% yesterday? These coins are highly volatile. They can equally crash by over 100% in few days to come so watch out! Make sure your portfolio is not made up of only such coin.

Stable coins

Bitcoin is the father of all coins and if you have observed the  growth rate, you will notice that it has been having  a gradual increment in value over time. It gives you a sort of confidence that it is not going to lose a sudden value compared to the volatile coins mentioned above.

Other coins I consider stable are: Tether, Maidsafe, Ethereum, Monero, etc.

Recommendation

Buy a bit of all these coins and have a mix of them in your holding: both volatile and stable. That way you will not see your portfolio lose sudden value.

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