Add These Crypto “Blue Chips” to Your Portfolio Today
Robert Ross|February 27, 2024
We’ve been talking a lot about crypto lately.
And there’s a huge reason why: We’re in the middle of a major crypto bull market.
But while I’ve told you all about how to search for altcoins, top trends to watch, and how to tell where we are in the cycle, I want to make sure you aren’t missing the big picture.
Because just owning a small amount of crypto “blue chips” could be life-changing.
I’m sure you’ve seen headlines filled with stories of overnight millionaires who struck gold by investing in the right cryptocurrency at the right time.
While these tales are undoubtedly exciting, they can also distract from a fundamental crypto investment principle…
The importance of including “blue chip” cryptocurrencies, like Bitcoin and Ethereum, in your portfolio.
Bitcoin and Ethereum are often referred to as the bedrock of the crypto market.
Bitcoin, the original cryptocurrency, has proven its resilience and potential for growth time and again.
Ethereum, with its smart contract functionality, underpins much of the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.
Together, they are the core of the crypto market.
Allocating even a small portion of your investment portfolio to these giants can provide a stable foundation amidst the volatility the crypto space is known for.
Because this isn’t just about playing it safe…
It’s about recognizing the long-term value these platforms continue to offer.
Why Bitcoin and Ethereum Matter
One reason investors should allocate a small amount – even 1% to 2% of their portfolios – to these “blue chips” is their staying power.
Both Bitcoin and Ethereum have weathered numerous market cycles and emerged stronger each time. This resilience speaks not only to their robustness but also to the faith the investment community places in them.
These “blue chips” are also increasingly being integrated into the financial ecosystem, particularly with the Bitcoin ETF (and a looming Ethereum ETF). This widespread adoption enhances their legitimacy and potential for growth.
I know it’s tempting to chase the potential high returns of newer altcoins. But including Bitcoin and Ethereum in your portfolio can provide a counterbalance to the high-risk nature of these investments.
Diversification remains a key strategy in managing investment risk.
So here’s how to get started…
Crypto “Blue Chips”
Bitcoin and Ethereum aren’t just safe havens… they’re actively growing ecosystems that continue to offer significant opportunities for investors who understand their value.
Consider this… Even modest investments in these cryptocurrencies have the potential to yield substantial returns over the long term.
And if you’re looking to get started, you can simply start small. Even a modest allocation of 1% to 2% of your portfolio to Bitcoin and Ethereum can grow significantly over time.
You also need to think long-term and resist the urge to cash in on short-term fluctuations. The real value of these investments often unfolds over years, not months. And trying to “time” these volatile swings can lead to missing upside moves.
And if you’re looking to add more “smart risk” to your portfolio, start by allocating an overall percentage to crypto… say 5% of your total portfolio. While 4% of that 5% should be in Bitcoin and Ethereum, you can put the other 1% into “smart risk” altcoins (here are a few ideas to get you started).
For new crypto investors, the goal is to have at least some exposure to this new asset class.
A Quickly Growing Asset Class
Crypto investors need to remember the same fundamental principles of investing: diversification and long-term vision.
The crypto market, with all its allure and volatility, offers unprecedented opportunities for growth. But it also comes with its fair share of risks.
By anchoring your crypto investments with stalwarts like Bitcoin and Ethereum, you’re not just securing a part of your portfolio against the unpredictable swings of the market… you’re investing in the very backbone of the crypto world.
Remember, the goal isn’t just to participate in the crypto market. It’s to thrive within it, to see beyond the immediate trends and recognize the enduring value of foundational assets.
Think of Bitcoin and Ethereum not as mere entries in your portfolio but as the bedrock upon which your crypto investments stand.
This balanced approach will not only safeguard your investments but also position you to capitalize on the vast potential of the crypto space.
Note: If you’ve been thinking about making a move into crypto… now’s the perfect time. A specific event coming on April 22, 2024, could send Bitcoin soaring. But I’ve found five smaller altcoins that could do even better. In the past, this event has sparked gains that ranged from 12,000%… to 84,000%… all the way to 300,000%. Get the details here.
Robert Ross
Robert Ross’s unique style of clear and direct stock research helped him build a massive following in the investment research industry, starting his career at investment research company Mauldin Economics and quickly rising through the ranks to become one of the youngest chief analysts in the industry. Today, over a million investors turn to Ross every month for his take on investing, economics, and personal finance. He now shares his unique insights in Total Wealth and Manward Money Report.