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RE: S16W1: Cross-Asset Correlation Analysis

in SteemitCryptoAcademy5 months ago

Greetings friend,
So basically, when it comes to cryptocurrencies, how they perform can depend on each other. It's important to balance the risk in your investment portfolio. So, by having a mix of different cryptocurrencies with varying investment ratios, you can manage the risk and avoid putting all your eggs in one basket.

If some cryptocurrencies don't move in the same way, like Bitcoin and Ethereum, it's a good idea to own both to spread out the risk. It's kind of like diversifying your investments to protect yourself if one coin doesn't do well.

And yes, this correlation study helps investors choose the right combination of cryptocurrencies to lower the overall risk of their portfolio and increase their chances of long-term success.

Therefore you've made a great entry and I say success to you in advance.

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Thank You for Your InsIghtful Comment Indeed, DiversIfIcatIon Is Key In ManagIng The RIsks AssocIated WIth CryptocurrencIes Investments. It's ReassurIng To Know That AdoptIng A DiversIfIed Approach Can Help MItIgate PotentIal Losses And Increase The LIkelIhood Of Long-Term Success In ThIs VolatIle Market.

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