Better Chance of Picking an Outperformer

A secondary benefit of a balanced crypto portfolio is that when you spread your investments out, you have a better shot at picking a coin that outperforms. Indeed, the reason more than 10,000 cryptocurrencies exist is that each one is trying to improve on some real-world problem with cryptocurrency.

Bitcoin is the largest and oldest cryptocurrency and has stood the test of time. However, we don’t know if someday there will be another coin worth more than Bitcoin if that newer coin improves on a certain fundamental quality. As you research cryptocurrencies, look for those projects that have the potential to solve real-world problems. For example, Chainlink’s solution to the oracles problem could be a potential alternative that will take off one day.