The Purpose of Having a Balanced Portfolio

Most beginning crypto investors believe buying crypto simply means holding Bitcoin in hopes its value moves up to $1 million per coin. Buying Bitcoin is a place to start. However, you can’t run until you first learn how to walk.

As we have seen in 2021, there are times when investors favor Bitcoin and other times that Bitcoin falls out of favor. Early in 2021, Bitcoin was accelerating higher in price behind speculation of its institutional adoption into corporate balance sheets. That favorable outlook was quickly reversed a couple of months later when debates about Bitcoin’s electricity usage and resultant carbon footprint began to swell.

An investor whose portfolio consists of just Bitcoin will experience volatile market swings.