Should Bitcoin Holders Diversify 5–10% of Their Holdings Into Other Cryptos?

Should Bitcoin Holders Diversify 5–10% of Their Holdings Into Other Cryptos?

By London Times

Should Bitcoin holders diversify 5-10% of their holdings into other cryptos?

Crypto News asks the experts this important question

One crypto analyst said absolutely yes.

For several reasons

A year ago the total market cap of Crypto was about $960 billion (just under 1 Trillion) yet Bitcoin made up a massive $650 billion or also 70% of this.

Yet in the last 12 months the total crypto market boomed from under 1 trillion to 3 trillion, with Bitcoin growing to $1 trillion but dropping to like one-third of the new larger market cap.

So by diversifying into some of the top 10 other cryptos is a good hedge or if a speculator there are small new cryptos showing a lot of potential as a hedge.

Bitcoin 2.0 is one such crypto (5 years old) that’s many Bitcoin holders are hedging into not just for the above reason but also small caps can 10 or 100 times much more easily than say Bitcoin now can.

Let’s say Bitcoin in 3 years skyrocketed to $500,000 USD

That’s massive but only a 10 times approx. increase.

Where say a smaller crypto like Bitcoin 2.0 at around $0.16 cents only has to go to $1.60 to ten times one money, or $16 to 100 times or $160 to 1000 times.

That’s why I hedge some into speculative cryptos that have a growing community base and real use value like Bitcoin 2.0 and rest into top 10 cryptos to capture the market uplift.

So it depends how one wants to weigh their portfolio but this is working well for me, said the avid crypto investor and analyst when Crypto News spoke.

It’s been echoed by several others as a key to not keep all one’s crypto just in Bitcoin to maximise future returns.

Bitcoin 2.0 has recently just listed on two new exchanges Azbits, and Coinsbit, and also listed on Bitxchange www.bit-xchange.org. It’s expected to see increased trading volume as it prepares for listing on larger exchanges. It’s been as high as $0.89 cents and sits at just $0.11 cents after early investors were able to liquidate significant amounts of their holdings, and is expected to rise now as the sell-off is largely over.

Original Source: https://www.londontimes.live/cryptocurrency/should-bitcoin-holders-diversify-5-10-of-their-holdings-into-other-cryptos/

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