An important aspect of investing has always been and always will be about holding a diverse group of assets. That much might seem obvious if you have done even a little bit of research on investments.
However, it is also important to maintain diversity among different types of assets. For example, if you are mainly investing in stocks, you would want to find some low- and high-risk stocks. Cryptocurrencies are similar.
As you begin looking into investing in cryptocurrencies, you will want to acquire a diverse set of cryptocurrency holdings.
How Many Cryptocurrencies Should You Buy?
Balancing your portfolio is necessary, but with these new ways to invest, it can be hard to know what balances.
Investors say you will likely want to have at least 10 cryptocurrencies in your portfolio at a time. This allows you to decide which industry type of currencies to buy. For example, some coins, like Ethereum, focus on smart contracting. Others focus on privacy for example PIVX.
How Do You Decide Which Cryptocurrency to Buy?
How you decide what coins are in your portfolio is entirely up to you. However, I will provide you with two easy strategies you can use when deciding.
First, you can just invest in the top 10 most valuable currencies at the time you arrange your portfolio. This one-size-fits-all strategy may work for some, but you may want to do more research.
If that is the case, one of my last investing tips for beginners is to research the coins you are interested in and find some with visions that you like.
With these tips in mind, you are ready to start investing in cryptocurrencies like a pro
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