Investing in Crypto: A Strategic Mix

Did you know that mixing cryptocurrencies in your investment portfolio can help reduce risk? Researchers recently put this idea to the test using a famous theory by Markowitz. They found that spreading out your investments across different coins can balance out the highs and lows. For instance, between 2017 and 2018, Ethereum showed the most significant price changes, but it also offered the highest returns, followed by Bitcoin and Ripple.Ethereum was the most volatile, too. The magic formula? Invest 70% in Bitcoin, 14% in Ethereum, 6% in Ripple, and 10% in Tether. This mix can help your portfolio weather the storms of the crypto market. The more types of coins you invest in, the less likely you are to see big swings in your portfolio's value. It's like having a variety of fruits in a basket—if one goes bad, the others can still make a tasty smoothie!