Diversifying Your Cryptocurrency Portfolio the Right Way

       Investors and traders alike are looking for diversification solutions to safeguard their portfolios from catastrophic collapse as the crypto market falls from all-time highs established in Q1 this year. Despite the recent market downturn, which has seen some altcoins lose up to 70% of their value, crypto enthusiasts are certain that this asset class will outperform traditional financial assets in the future.

Perks and headaches of diversification in crypto
As a result, diversification is essential for investors and traders to protect their investment as volatility rises. For instance, during the great bull run of 2021, a Bitcoin-only portfolio would have returned 84 percent from January 1 to April 30, 2021. During the same time span, holding a diverse portfolio of altcoins would have outperformed holding a single asset in BTC. According to Coingecko, Ethereum (273 percent), Dogecoin (6416 percent), and XRP (536 percent) are just a few of the altcoins that outperformed BTC during this time.
Diversification, brings a lot of benefits, is not without its drawbacks. While choosing a basket of crypto alternatives might help with profit optimization and risk management, picking individual assets can be difficult. The range of crypto assets is extensive, which could result in significant overheads in terms of required due diligence, time-consuming project research, and expensive transactions.

“On the basis of a single token, diversification”
YDragon has devised a method to assist investors in diversifying their bitcoin portfolios. To obtain a more diverse crypto portfolio, clients can invest in a YDragon index (such as BSCX for the most respectable currencies on Binance). The programme will launch in August and will provide a variety of alternatives for people interested in learning more about high-performing cryptocurrencies.

“Through our staking platform, holders of YDragon indexes can achieve higher yield, passive income on collateralized assets.”