What is a well diversified crypto portfolio?

In this regard, a well-diversified portfolio should contain a wide variety of crypto assets across many different niche markets. The purpose of this guide is to explore the best crypto portfolio allocation for risk-averse investors.

Should you diversify your cryptocurrency portfolio?

To ensure that investors enter and remain in the cryptocurrency arena in a risk-averse manner, portfolio diversification should be considered. A well-balanced portfolio will contain a good blend of large-cap projects, inclusive of Bitcoin, Ethereum, and BNB.

How many crypto assets does a portfolio own?

As a result, the portfolio owns 20 different crypto assets from a range of different markets. This is, however, just a simplified example of cryptocurrency portfolio allocation. Investors should determine their own portfolio weighting and chosen projects, as per their own financial goals and risk profile.

What does a medium-risk crypto portfolio look like?

Nonetheless, to offer some insight into what a medium-risk crypto portfolio might look like with an investment capital of $10,000, consider the following example: A medium-risk crypto investor might elect to allocate just 50% of their portfolio to large-cap coins.