Cryptocurrency has become an attractive alternative investment in recent years due to its high potential returns. However, the extreme volatility also brings high risks. A wise cryptocurrency investment strategy should build a diversified portfolio across different cryptoassets…….
Choose mainstream cryptoassets like Bitcoin and Ethereum
Mainstream cryptoassets like Bitcoin and Ethereum have the largest market capitalization and user base, making them less risky relative to smaller altcoins…..
Allocate a small portion of portfolio to cryptocurrency
Due to the high risks in cryptocurrency investment, investors should only allocate a small portion, such as 5-10%, of portfolio to cryptoassets…..
In summary, diversifying across mainstream cryptoassets and controlling position size are key to managing risks in cryptocurrency investing.