How much of my portfolio should be in Cryptocurrency?

According to the study, by Yale economist Aleh Tsyvinski and reported on by Bitcoinist, BTC should occupy about 6\% of every portfolio in order to achieve optimal construction. Even those who are strong bitcoin skeptics should maintain at least 4\% BTC allocation, said the study.

What is the difference between Altcoins and Cryptocurrency?

Altcoins can be mined from any computer, making mining more convenient unlike bitcoins that use expensive hardware to mine coins. Altcoins have attracted investors and created a bustling and competitive market in the world of cryptocurrency owing to these benefits.

How do you diversify cryptocurrency portfolio?

Hence, to effectively diversify your portfolio, you should invest in more than one coin or token. Ideally, you will choose several cryptocurrencies with different fundamental values or with different potential valuations.

How many cryptocurrencies should you diversify your portfolio with?

It probably makes little sense to diversify a 100 USD cryptocurrency portfolio. If you don’t have more than 500 USD available then it can be safe to stick to 2-3 coins you think have potential.

How to rebalance your cryptocurrency portfolio?

To properly rebalance your portfolio you should actively follow the communities of the coins you are invested in, and follow major cryptocurrency news sites and blogs. Another interesting approach, especially if your portfolio is a bit more sizeable, is to combine coins with different return models.

What is the best way to invest in cryptocurrencies?

An interesting strategy is the following: A safe stake should be composed of major cryptocurrencies like Bitcoin and Ether. The goal is to have a core position in a few digital assets that are less likely to fail in the short-term, and that will still perform extremely well over a long period of time.

How to diversify your investment portfolio?

The way you diversify your portfolio usually depends on more than just one factor. For instance, you may consider your knowledge and experience in the industry, the economic situation in your country, and whether you love or hate Bitcoin.