Managing your crypto portfolio is one of the most daunting tasks for the investors in the cryptocurrency. With the availability of the numerous altcoins, it becomes a difficult choice for the investors to finalize on which product to invest on. Having the best crypto tracker application provides additional assistance in managing the different investment as it may feel impossible to manage them with just the excel sheet.
The different cryptocurrencies perform in a different way in the market. Bitcoin is definitely the most common and popular cryptocurrency, however, there are many other altcoins which performs even better than Bitcoins.
Due to this, there is a huge doubt and confusion among the investors to whether go for a diversified crypto portfolio or keep in restricted with a few investments. Both of them have got their own pros and cons, thus, you need to select according to your convenience.
Circumstances Where Diversified Portfolio is a Good Choice
The diversification provides a balanced portfolio without the need to sacrifice the return. It protects you from heavy losses from a bad decision or other issues. You will find over 1500 registered digital coins which make the diversification of the portfolio much easier.
So when should you have a diversified portfolio? Here are a few situations to look for: –
- When you are confused about investing on which altcoin.
- When you have saved a huge capital for investing in cryptocurrency and wants a higher and quicker return.
- If you don’t have an expert idea of the crypto market, you can opt for investing in different digital coins instead of trusting in one or two coins.
Who Shouldn’t Go for a Diversified Crypto Portfolio?
There are many people who are against the diversification of the portfolio. With the availability of over 1500 registered digital coins, the abundance may be overwhelming, however, also creates a lot of trouble for the investors.
No all the altcoins are as good as Bitcoin in the respect of performance and rate of return. So, trusting in the different and wide range of the digital coins may not turn up to a good idea if the value starts to drop,
- If you are in the game of cryptocurrency for a long time, then you don’t need a diversified portfolio.
- If you have small capital to invest, then you should go for only a few top-performing coins.
Whatever the type of portfolio you are using, the crypto tracker is one of the musts to have application to manage your portfolio perfectly.