• Home
  • News
  • Knowledge
    • All
    • Blockchain
    • Trading
    what is bitcoin cash

    What Is Bitcoin Cash?

    what is defi

    What is DeFi (Decentralized Finance)?

    diversifying crypto portfolio

    Why It’s Time to Diversify Your Crypto Portfolio Today

    make money with arbitrage banner

    Making Money with Crypto Arbitrage

    CEX vs DEX

    Centralized Exchanges vs Decentralized Exchanges

    What is Ripple?

    What is Ripple?

    become susscess trader

    How to become a successful crypto trader

    what is bitcoin

    What is Bitcoin?

    what is ethereum

    What is Ethereum?

  • Guide
  • Annoucements
    gire token listing exchange

    GIRÉ TOKENS (GET) is now listed on Vinex

    Vinex Network official blog launch with Review rewards await

    Vinex Network official blog launch with Review rewards await

    CryptoNewsNet (NEWS) is now listed on Vinex

    CryptoNewsNet (NEWS) is now listed on Vinex

    Midas Ecosystem Update for August 2020

    YFV listed on Vinex

    Polkadot ($DOT) on Vinex.Network exchange

    Polkadot ($DOT) on Vinex.Network exchange

    YAM listed on Vinex.Network Exchange

    YAM listed on Vinex.Network Exchange

    YFLINK is now listed on Vinex

    YFLINK is now listed on Vinex

    Midas Ecosystem Update for August 2020

    NDAU listed on Vinex.Network Exchange

    vinex airdrop pool

    New feature of Vinex.Network exchange: Airdrop Pool.

No Result
View All Result
Vinex Network
  • Home
  • News
  • Knowledge
    • All
    • Blockchain
    • Trading
    what is bitcoin cash

    What Is Bitcoin Cash?

    what is defi

    What is DeFi (Decentralized Finance)?

    diversifying crypto portfolio

    Why It’s Time to Diversify Your Crypto Portfolio Today

    make money with arbitrage banner

    Making Money with Crypto Arbitrage

    CEX vs DEX

    Centralized Exchanges vs Decentralized Exchanges

    What is Ripple?

    What is Ripple?

    become susscess trader

    How to become a successful crypto trader

    what is bitcoin

    What is Bitcoin?

    what is ethereum

    What is Ethereum?

  • Guide
  • Annoucements
    gire token listing exchange

    GIRÉ TOKENS (GET) is now listed on Vinex

    Vinex Network official blog launch with Review rewards await

    Vinex Network official blog launch with Review rewards await

    CryptoNewsNet (NEWS) is now listed on Vinex

    CryptoNewsNet (NEWS) is now listed on Vinex

    Midas Ecosystem Update for August 2020

    YFV listed on Vinex

    Polkadot ($DOT) on Vinex.Network exchange

    Polkadot ($DOT) on Vinex.Network exchange

    YAM listed on Vinex.Network Exchange

    YAM listed on Vinex.Network Exchange

    YFLINK is now listed on Vinex

    YFLINK is now listed on Vinex

    Midas Ecosystem Update for August 2020

    NDAU listed on Vinex.Network Exchange

    vinex airdrop pool

    New feature of Vinex.Network exchange: Airdrop Pool.

No Result
View All Result
Vinex Network
No Result
View All Result

Why It’s Time to Diversify Your Crypto Portfolio Today

Noah by Noah
September 18, 2020
in Knowledge, Trading
0 0
0
diversifying crypto portfolio
0
SHARES
70
VIEWS
Share on FacebookShare on Twitter

An eternal truism of investment is that a diversified portfolio is a stronger one. The same is true for your cryptocurrency portfolios. While small-scale crypto-traders might be better off sticking to two or three different coins, anyone who is attempting to build a sizeable portfolio should consider branching out.

It is a fact that bitcoin has demonstrated unprecedented volatility since 2017, meaning that putting all of your eggs in one basket is an undeniably risky strategy. Beyond this, let’s take a closer look at why it is essential that you begin diversifying your crypto portfolio today.

You Can’t Count on Bitcoin Alone

As mentioned, bitcoin is no longer a reliable investment on its own, Granted, the currency has experienced a strong rally throughout 2020, largely in response to global economic instability, but history has shown that bitcoin tends to have very short and sudden boom cycles followed by decline and stagnation. Being overly reliant on bitcoin means that your assets are being needlessly exposed to the vulnerabilities of this highly volatile coin. Diversifying your crypto holdings will help you offset some of this considerable risk.

Industry Leaders Are Diversifying

If you’re ever at a loss over which investment decisions to take, simply check what the big league investors are doing. Well-known crypto millionaires such as Barry Silbert, Dan Morehead, and the Winklevoss brothers all have significant investments in coins other than bitcoin, as well as investments in hundreds of different crypto exchanges around the world. All of these investors may have gotten their start during the original bitcoin boom, but have since expanded into other currencies.

Diversification Has Never Been Easier

Another important reason to diversify your crypto holdings today is that it has, quite simply, never been easier to do so. The process of moving your investments around and choosing to invest in multiple cryptocurrencies in an instant is now convenient, user-friendly, and can be done via your mobile device. Thanks to the proliferation of broker platforms for crypto trading that can guarantee safe and speedy investments, there really is no excuse. In addition, such platforms also come with expert analysis and guidance on the latest crypto markets, allowing you to make informed diversification decisions.

Other Coins Are Catching Up

While other coins have had their occasional moments in the sun, bitcoin is still widely viewed as the only game in town. Part of this is to do with the simple fact that none of the other major cryptocurrencies tend to come close to bitcoin in terms of per-coin value. However, the past couple of years has seen the gap between bitcoin and other major cryptocurrencies close like never before. Ethereum (ETH) has seen the highest level of trading activity in years, with its value being pushed up past $350 and continuing to rise. Litecoin has started to gain traction thanks to its high block reward of 25 LTC, which now looks all the more appealing in light of Bitcoin’s recent ‘halving’. BAT, created by the investor of Javascript, is the only cryptocurrency that didn’t collapse in value back in February, suggesting a bright future ahead. The list goes on.

It’s a Volatile World

Finally, it bears repeating that we simply live in a volatile world, where even the most secure and ‘safe’ investments can see their value collapse in the blink of an eye. We have already witnessed a devastating market collapse this year and there is every indication that another one could be on the way. Diversifying your portfolio is a way of hedging your bets and ensuring that you have as many backups and safety nets as possible if things turn sour. On the flip side, a diversified portfolio greatly increases the chance that you will bet on a winner and hit the jackpot.

These are just a few of the reasons why you should consider diversifying your cryptocurrency portfolio today. Think outside the bitcoin box and start exploring new opportunities.

***

DISCLAIMER

The views, the opinions and the positions expressed in this article are those of the author alone and do not necessarily represent those of https://www.vinex.network/ or any company or individual affiliated with https://www.vinex.network/. We do not guarantee the accuracy, completeness or validity of any statements made within this article. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author. Any liability with regards to infringement of intellectual property rights also remains with them.

Tags: BitcoinCryptocurrency
Previous Post

Making Money with Crypto Arbitrage

Next Post

What is DeFi (Decentralized Finance)?

Noah

Noah

Next Post
what is defi

What is DeFi (Decentralized Finance)?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You might also like

gire token listing exchange

GIRÉ TOKENS (GET) is now listed on Vinex

October 21, 2020
Vinex Network official blog launch with Review rewards await

Vinex Network official blog launch with Review rewards await

October 21, 2020
CryptoNewsNet (NEWS) is now listed on Vinex

CryptoNewsNet (NEWS) is now listed on Vinex

October 21, 2020

A Data Driven Look at DeFi’s Summer

October 21, 2020
Midas Ecosystem Update for August 2020

Midas Ecosystem Update for August 2020

September 21, 2020
Stronger Management Board for Midas.Eco’s next phase of growth

Stronger Management Board for Midas.Eco’s next phase of growth

September 21, 2020
Vinex Network

Vinex Network next-generation cryptocurrency exchange. We aims to become the launchpad for new cryptocurrencies/ tokens that are technologically advanced or highly applicable in near future.

Tags

Altcoin Annoucement Arbitrage BCH Bitcoin Bitcoin Cash Blockchain BTC Cryptocurrency DApps DASH DeFi DOT ETH Ethereum Exchange Hard Fork Listing Litecoin LTC Monero Partnership Ripple Smart Contracts trading XMR XRP YFL YFV Zcash ZEC

Stay Connected

  • Home
  • News
  • Knowledge
  • Guide
  • Annoucements

© 2020 Vinex Crypto Exchange - Vinex Network next-generation cryptocurrency exchange. Midas Protocol.

No Result
View All Result
  • Home
  • News
  • Knowledge
  • Guide
  • Annoucements

© 2020 Vinex Crypto Exchange - Vinex Network next-generation cryptocurrency exchange. Midas Protocol.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In