Diversifying a cryptocurrency portfolio based on the use-cases of different digital assets.Today, the cryptocurrency market encompasses more than 11,000 digital assets. These cryptocurrencies have different use-cases, functionality, operations, etc. While thousands of digital currencies exist today, the top 20 cryptocurrencies dominate 90% of the market share.Investing in this highly volatile market comes with risks. Many investors make the mistake of holding on to only one crypto asset, and continually keep investing in it. However, this strategy has become outdated and may lead to significant losses.When it comes to cryptocurrency, one of the strategies to deploy is to diversify your portfolio. Diversification is the base principle of sound investments, and it can easily reduce your overall risk while investing.A crypto portfolio is a collection of different cryptocurrencies, which contain a variety of digital currency assets. Essentially, you can diversify your portfolio across coins, tokens, and products that present different goals and use cases.Diversifying your crypto portfolio is a common strategy used by expert investors. By spreading your capital in different assets, you reduce overall risk and volatility. Your portfolio has more scope to gain profits, and your losses can be balanced out by the gains.In order to diversify your portfolio, it\u2019s important to have a basic understanding of the different types of cryptocurrencies and digital available for investment:The crypto market is highly unpredictable and volatile. Hence it\u2019s important to have a few assets that remain stable and keep their value intact. Stablecoins are digital assets that are designed to reflect the value of fiat currencies such as the dollar or euro. For instance, BUSD pegs the U.S. dollar with a 1:1 ratio. PAX Gold uses a similar system, where it ties the value of the coin to the value of one troy ounce of gold held in reserves. Hence, stablecoins act\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Diversifying a cryptocurrency portfolio based on the use-cases of different digital assets.Today, the cryptocurrency market encompasses more than 11,000 digital assets. These cryptocurrencies have different use-cases, [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/5163"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/comments?post=5163"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/5163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/media?parent=5163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/categories?post=5163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/tags?post=5163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}