Investing in cryptocurrencies industry is not an easy thing, for sure. Since cryptocurrencies are very volatile investment instruments for many traders, you could lose all of your money in a very short time if you won't have a plan in mind. One of the plans that the long term investors are following is a very old trick called diversifying. Many people believe that portfolio diversification is the thing you need before you start investing in cryptocurrencies. By doing that, you can mitigate the risk, and you can have a chance to get good returns on your investments for the long term.
Putting all your eggs in one basket could be a very dangerous thing to do. With doing that, you can expose yourself to a high level of risk. It's obvious that diversification is a very important thing to consider. We all know that putting all your eggs in one basket could be a very dangerous thing to do. With doing that, you can expose yourself to a high level of risk. But how will you do this is another question. Today, we are going to explain some smart ways to diversify your crypto portfolio.
Bitcoin is the first cryptocurrency that we've ever seen in our lives. The leading cryptocurrency is the reason why we are talking about this whole sector at the moment. Bitcoin's leading status in this industry will always stay there. And worth noting that that the Bitcoin is by far the largest cryptocurrency based on the market cap and traditional investors are always talking about Bitcoin first when they intend to invest in cryptocurrencies.
Bitcoin itself is a very volatile asset, just like any other cryptocurrencies. But you can hedge the risks of investing in cryptocurrencies by giving space to BTC in your portfolio. Because when the whole market crashes, the least crash is usually seen in Bitcoin. So that will give you the hedge against the further drops.
In your crypto portfolio, it's always better to have some sort of passive income provider. These are usually called Proof of Stake (PoS) coins. If you diversify crypto portfolio with Proof of Stake coins, the products you invest in will be valued more in the long term and in the meantime, you will get an additional source of income via staking.
To find the best Pos coins to stake, you can take a look at MyCointainer. You can have lots of different coins to stake on our platform. But there's some issue associated with PoS coins and that is staking or reward fees. So if you choose to stake your coins on MyCointainer and subscribe one of our Power plans, you don't need to pay any staking fee which makes PoS coins are even better investments.
If you subscribe to one of our Power plans, you can keep the additional %7 of staking fees to yourself. That would give you a better room for manoeuvre in your future trades or investments. To take a detailed look at our Power plans, you can visit this page.
The other thing about PoS coins would be that they are seeing as the next generation of cryptocurrencies. Since the usual cryptocurrency industry relies heavily on mining operations, many critics suggest that this is bad for nature in the long term. By including PoS coins on your portfolio, you can also have a chance to make an investment of the next generation of cryptocurrencies and earn an additional income.
Airdrops are generally seen as a free money opportunity for many traders. These are very important because if you participate in airdrops, you can have a chance to earn free and diversified coins. But how to choose the best airdrop is a different thing. It could be challenging, especially if you are new to this sector. However, as MyCointainer team, we are presenting you the best airdrops to participate each week. Therefore, you don't need to spend time on research. To learn more about the airdrops, please take a look at this article.
Stablecoins are the ultimate market hedgers. If you want to mitigate your risks in the cryptocurrency industry, you should choose include stablecoins to diversify crypto portfolio. There are many stablecoins out there such as Tether (USDT), True USD (TUSD), Binance USD (BUSD) and Gemini Dollar (GUSD). And also, there are many more stablecoins who are tied to a different type of fiats such as Euro and Pound.
Many people see stablecoins as a great way to protect your investment from volatility. The other important matter for stablecoins are that they are giving you a chance of liquidity when you need it. Because if you experience a hard crash in this sector, you can lose all of your money very quickly. But if you include stablecoins on your portfolio, then the effect of the drop is felt less. The stablecoins also allows you to buy cryptocurrencies at lower levels after the drop. So it's always good to have stablecoins in your crypto portfolio.
Getting extra money in your crypto portfolio is a good way for diversification. And special offers and bonuses allow you to do that. On MyCointainer we have a new bonus programme which is designed just for you. If you exchange your coins on MyCointainer, you can get an additional bonus of your preference. That will give you another asset to diversify crypto portfolio and also an additional source of income. You can visit this page to see how you can earn a bonus by simply exchanging your coins on MyCointainer.
To diversify your crypto portfolio, you can decide to add some of the most popular altcoins such as Ripple (XRP) and Ethereum (ETH). In addition to that, you can take a look at other popular coins such as Stellar Lumens (XLM), Bitcoin Cash (BCH) and Cardano (ADA). These are widely seen as a good choice of investments for the long term. But keep in mind that they are extremely volatile assets too so you should do your own research before making a decision.
If you have a well-diversified portfolio in the long run, you have a great chance of making positive returns on your investments for cryptocurrencies. There are an outstanding amount of alternatives that you can choose in this sector. But keep in mind that you shouldn't invest any other crypto just the diversify your portfolio. Your choices should be well-thought and based on facts rather than assumptions. We wish you all the luck in your future investments!
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Christophe WILHELM
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Source: Diversify Crypto
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