What Is a Cryptocurrency Portfolio?

A cryptocurrency portfolio is a basket of digital assets consisting of cryptocurrencies. Crypto investors aim to improve their risk-adjusted returns by mixing and diversifying their cryptocurrency and token investments.

Source: CoinMarketCap

For many beginners, investing in crypto means buying and holding Bitcoin. Did you know there are over 10,000 cryptocurrencies available? It is not feasible to buy all 10,000 for your portfolio, nor do you want to. The top five largest valued cryptocurrencies make up 76% of all cryptocurrency value.

The vast number of cryptocurrencies available speaks to the future potential of crypto. Therefore, including crypto as a portion of your overall investment portfolio makes sense.

Before we dig into methods to build your crypto portfolio, let’s tackle some benefits a crypto portfolio may deliver.