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My friends at AboveCrypto and I spent some time researching ways to diversify crypto portfolios. We have come up with an easy way to do it. You can join their group here.
Instead of looking only at coins, we looked at the industry’s the coins are in. For example, if you only invest in coins in the payment industry, you are not truly diversified. By looking at both coins and industry, it gives you the most diversified portfolio possible.
We have broken things down into 5 different industries, along with coins we like for each one. Some cryptos will be in more than one industry which is good. This allows you to break down your investments and trade within the different sectors. Here is how to diversify a crypto portfolio.
- Payment– These coins can be used as a currency to pay for goods and services.
- Bitcoin (BTC)
- Litecoin (LTC)
- Nano (NANO)
- Stellar (XLM)
2. Dividend– Dividend cryptocurrencies mean that after owning a certain amount of coins you get that coin as a payment. For example, any type of masternode would be a Dividend coin.
- Neo (NEO)
- OmiseGO (OMG)
- ZCoin (XZC) – Masternode
- Waltonchain (WTC) – Masternode
- Syscoin (SYS) – Masternode
- Binance Coin (BNB)
- Phore (PHR) – Masternode
- ZenCash (ZEN
3.Privacy– These cryptocurrencies give users a degree of anonymity in a robust and decentralized manner. Not all cryptos conceal the path leading from sender to recipient.
- ZCoin (XZC)
- Monero (XMR)
- Dash (DASH)
- ZenCash (ZEN)
- Phore (PHR)
4.Utility– These are coins that are used as services or units of services that can be purchased by an end consumer.
- Waltonchain (WTC)
- VenChain (VEN)
- OmiseGO (OMG)
- Binance Coin (BNB)
- WaBi (WABI)
- Power Ledger (POWR)
- Syscoin (SYS)
- Basic Attention Token (BAT)
- Factom (FCT)
5.Platform– These coins support digital platforms that can be used to build other cryptocurrencies. Often this centers around blockchain-based networks that allow software developers to write smart contracts.
- Ethereum (ETH)
- Neo (NEO)
- EOS (EOS)
- Icon (ICX)
- Lisk (LSK)
- Stratis (STRAT)
- Stellar (XLM)
- Waves (WAVES)
- Ark (ARK)
- Vechain (VEN)
- NavCoin (NAV)
- Syscoin (SYS)
Look at your portfolio and classify each of your coins into an industry. If you have to many in one area, start investing into other areas. When researching a new coin check to see where and how it can fit into your portfolio.
Everyone is looking for an advantage when investing. This is how to diversify a crypto portfolio and get an advantage that others may not have.