Diversified Crypto Portfolio

Posted By Darren Winters on Jun 5, 2021


Diversified Crypto Portfolio

Building a diversified crypto portfolio could be Generation Z’s life raft.

Think about it. The insecure work conditions in the gig economy sucks, but it’s better than nothing. Those fortunate enough to be in stable employment, with a regular paycheck, and can save receive pitiful interest on deposit accounts. Moreover, throw monetary inflation into the equation and savings get depreciated.

To top it off real estate has been hyperinflated due to the central bank’s M2 to the moon

So, what do young people (the future generation of households) do if they want to get ahead, save money, put a deposit down on a home, and start their household?

My advice to young people is don’t get mad get investing, and building a diversified crypto portfolio could be one way to a brighter future.

So let me set the stage, the fourth revolution is accelerating the digitalization of everything. Put simply data is the new black gold. Look for technologies or companies which are likely to make a huge impact on the world not in the here and now but in the future. In other words, you are investing in the future, not the present. Your aim as a young investor is to put your money on the next Amazon and steer clear from Kodak.

We are living through a revolution where the status quo no longer applies, traditional styles of investing are likely to fail because it is being disrupted by technologies and a transition to a new system. So, the concept of safe-haven assets is being challenged as a new global digital ecosystem is being built.

We are at the cusp of this great transformation from a fiat system to a Bit system and with that, we are likely to see the greatest transfer of wealth.

Young people, generation Z will most likely value Bitcoin more than gold as this belief system of value evolves.

This leads me to building a diversified crypto portfolio

Cryptocurrencies are more than digital currencies, which have become the currency of choice for Generation Z and young millennials. Cryptocurrencies represent blockchain technology, which is at the front seat of the digitalization of everything. 

Untapped value can be found in the utility of cryptocurrencies, which is about the decentralization of everything on the secure blockchain Ethereum network.

There are three main applications of cryptocurrencies that should be reflected in a diversified crypto portfolio

Firstly, the two main cryptocurrencies, Bitcoin is being accepted as the new store of value and the Ethereum secure blockchain network is the main blockchain favored by application developers for building applications.

So, Bitcoin and Ethereum, the latter having utility, are like bonds of the old financial world.

The other more dynamic cryptocurrencies which have utility and are major disruptors to certain sectors include DEFI, Web 3.0, and NFT cryptos

So, I would define a well-diversified portfolio as having 60% of the funds allocated to Bitcoin and Ethereum with the remaining 40% placed with DEFI, Web 3.0, and NFT cryptocurrencies.

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