Cryptocurrency Investors Need To See These Charts
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If cryptocurrencies are part of your investment portfolio, it's important to really understand how they're behaving in today's capital markets. The narrative about Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) in popular media and some message boards has been a bit misleading if we look at the data. Make sure that you're using crypto assets the right way to avoid unwanted outcomes.
Different assets play different roles in an investment portfolio. Growth stocks have great long-term potential returns, but they are volatile. Value stocks can provide decent upside, but they generally carry lower risk and reward. Dividend stocks provide regular investment income, regardless of market conditions. Bonds generate interest income, and they're typically lower volatility than equities. None of these are better or worse than the other, but they fulfill specific niches, and they're valuable in various ways to different investors.
Crypto assets need to be understood in this same context -- they have some really attractive features, but they're not universally suitable for all functions. If we understand how and why cryptocurrencies perform the way they do, we can figure out how to deploy them responsibly in a portfolio.
Source Fool.com
