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The diversification of your investment portfolio is a fundamental step towards reducing risks, since your assets are not concentrated in a single asset class, thus avoiding risk concentration.
However, it is necessary to understand that diversifying is different from pulverizing your investments. Spraying happens when you invest little money in a large amount of assets.
Diversifying is not about buying a large quantity of financial products at random, but investing consciously in assets that are in accordance with your profile, objectives and goals as an investor.
How to have a diversified investment portfolio?
Having a diversified investment portfolio is important, but you need to have strategies to choose where to invest. Taking into account only one attribute of a given investment may not be ideal, a complete analysis will bring more security to your business.
Observing the main characteristics of the asset, such as rates, performances and maturity, is a good start for a deeper analysis. However, this information out of context can generate an untrue result.
Therefore, it is important to study the market in which your investment is inserted, as well as the major events it took part.
A well-diversified portfolio contains a selection of investments that pay off in different scenarios. For this it is not necessary a large quantity, but quality in the investments made.
Is using cryptocurrencies to diversify my portfolio risky?
In any type of investment there will be a risk, which may be almost nil, but there will still be.
A well-diversified portfolio has assets of different classes. Digital currencies, because of their decentralized nature, are an excellent option for investors looking to go beyond traditional assets.
The relationship between traditional investments and cryptocurrencies such as bitcoin is well regarded by many experts. Despite the high volatility presented by digital currencies, the potential for growth and high prices over long periods tends to compensate.
The factors that tend to impact the value of cryptocurrencies are different from those that move assets such as stocks or government bonds, which helps when creating strategies for different scenarios.
However, it is necessary to thoroughly research the currency in which you will invest, analyze its positive and negative points, and understand the type of investment you are making.
A good analysis is essential, not only to diversify your portfolio, but for this process to be done in a healthy wa
