How Can Investors Weather The Bear Market In Crypto For Now?
Scroll DownWith the digital currency markets going through one of their worst bearish periods, smart investors are starting to look for new profit strategies they can take advantage of when a rebound occurs. Given the volatility that the cryptocurrency markets are known for, the prospect of them bouncing back is pretty much dialed in, and it is always prudent to be formulate a strategy that lets you make the most out of this eventuality.
If your token portfolio is limited to Bitcoin holdings, you will be surrendering to the volatile nature of the market. What you need to get into is called diversity. Putting all your eggs in a single basket is an extremely risky strategy. Investing in various tokens that serve various purposes is a better way to manage your cryptocurrency portfolio. If you only chase after the major tokens, you are also placing your funds at risk, so you will not want to focus solely on Bitcoin, Ethereum, and Ripple.
Let's take a closer look at how a diversified cryptocurrency portfolio would work. You should not completely write off the Bitcoin token; investing in a few satoshi, up to 20% of your portfolio, is still a good idea. You really should learn about the fundamentals of the cryptocurrency markets when you invest in other token because Bitcoin has been lacking fundamentals for a while. If you are a long-term investor, loading up on Bitcoin could be a real problem in your future. In other words, it could be that you invest in a risky asset because you think you can pull it back down and get some value. If you are a long-term trader, it might also happen that you lose money because you are putting too much faith in the price of the platform. In other words, you will have a huge amount of doubt about the future of the cryptocurrency market.
For the rest of your portfolio, choose another major token such as Tether or Ripple up to 30%. The rest of your holdings can be split into altcoins or DeFi projects that are supporting the Ethereum network.
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