Is Bitcoin the Right Asset To Diversify Your Portfolio?

Is Bitcoin the Right Asset To Diversify Your Portfolio?

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

With continued global financial uncertainty amidst challenging times, investors are looking for the best way to diversify their portfolios in order to optimize their downside protection and upside risk, The popular trading platform, eToro, thinks it may be the right time for some of their users to continue to diversify their portfolio into alternative asset classes such as Bitcoin

The first point that the analysts of eToro bring up in favor of diversifying into Bitcoin is that currently, traditional financial markets are extremely and uncharacteristically volatile. On top of that. Bitcoin is colloquially referred to as digital gold, and there are many good reasons that it has started to earn this reputation. Bitcoin gives users the opportunity to hedge against traditional fiat inflation by investing in an asset with a fixed and predetermined distribution quantity.

Even when evaluating Bitcoin from a technological perspective and not as a financial investment, the technology behind it, the blockchain, is a fascinating and revolutionary technology that is already changing many types of industries around the world. As the oldest, most reliable, and most valuable iteration of blockchain technology, diversifying your portfolio into Bitcoin can give your portfolio exposure to revolutionary and potentially disruptive technology.


With all of these benefits, it is also very easy for users to purchase Bitcoin. Whether you would like to purchase with a debit or credit card, cash, a bank transfer, or with another cryptocurrency, acquiring Bitcoin is relatively simple. First you have to decide which medium you would like to exchange for Bitcoin, such as cash or a debit card, and then you need to log on to an exchange or a enter a marketplace that will allow you to conduct these trades. You can also purchase Bitcoin offline via a peer-to-peer exchange or by using a Bitcoin ATM.


It is important that you understand all the risks associated with purchasing and holding Bitcoin before you make your trade and understand that although it has a bright future nothing about Bitcoin is truly certain. It is important not get caught up in the hype or FOMO (fear of missing out), as these emotional responses may cloud your judgement and cause you to make an unplanned or unwise trade. You want to try and purchase your Bitcoin during a market downturn, and make sure that you are always using a reliable exchange or means of transaction when conducting any trade,

5/5

Recently Similar News

Latest Guides

Latest News

Blockchain,Changelly,Cryptocurrency,Exchange Platforms

Changelly Adds Ardor, Ignis, and NXT to Changelly PRO

Changelly, the online cryptocurrency exchanges, has added three more tradable assets to their Changelly PRO platform. Changelly, the large online crypto exchange, has recently added an additional three cryptocurrencies to their Changelly PRO platform, Ardor, Ignis, and NXT. All three tokens developed by Jelurida will be tradable against BTC as ARDR/BTC, IGNIS/BTC, and NXT/BTC. Jelurida […]

6 November, 2020
Crypto Wallets,Exchange Platforms,Kraken,Ledger

Ledger Phishing Scam is Targeting Crypto Wallet Users

Ledger, the cryptocurrency wallet company, has been massively affected by a data breach and phishing scam. Ledger, the world renowned cryptocurrency hardware wallet producer, is facing a lot of problems with a data breach that is being used to target their customers. Kraken Intelligence, the intelligence arm of the Kraken cryptocurrency exchange, analyzes this data […]

5 November, 2020
Bitcoin,Blockchain,Cryptocurrency,Ethereum

Ethereum on Track to be First Blockchain To Process $1 Trillion In Yearly Transactions

Ethereum, the second largest cryptocurrency by market cap, is preparing to break the $1 trillion mark in yearly processing. Ethererum, the largest cryptocurrency behind Bitcoin, is on track to be the first blockchain to process over $1 trillion in transactions in a single year. Currently, the Ethereum network is processing more than double the amount […]

4 November, 2020
Binance,Blockchain,Cryptocurrency,Exchange Platforms

Binance is Giving Away $20,000 in Fifth Learn and Earn Series

Binance, the largest online cryptocurrency exchange, is hosting its fifth learn and earn series, this time with Orion Protocol. Binance, the worlds largest cryptocurrency exchange, will be hosting their 5th Learn and Earn campaign in collaboration with the Orion Protocol. In this campaign, Binance will be giving away $20,000 worth of ORN, the native cryptocurrency […]

3 November, 2020
Bitcoin,Blockchain,Cryptocurrency,Exchange Platforms

Bitcoin Monthly Prices Finishes at Second All-Time High

At the end of October, Bitcoin has registered its second highest closing price of all time. Bitcoin bulls continue to rejoice as Bitcoin closes at its second highest monthly price in the history of the digital currency. Bitcoin closed October with a price hovering right around $13,800, the second highest monthly price finish besides the […]

2 November, 2020
Cryptocurrency,Exchange Platforms

Cryptimi Announces Launch of Additional Platform for German Speaking Users

 At Cryptimi, we have announced the launch of our newest news platform in one of the largest languages globally, German. We are very pleased to announce the release of our world class Cryptimi platform in German! Now, all german speakers will be able to access all of the traditional media and features they would receive […]

27 October, 2020
Binance,Blockchain,CoinMarketCap,Cryptocurrency

CoinMarketCap Launches Latest Earn Campaign With Helium

CoinMarketCap, the largest online market cap aggregator, has launched their latest Learn and Earn campaign with Helium. CoinMarketCap has launched their latest iteration of their Learn and Earn program in partnership with Helium. Learn and Earn is a program launched by CoinMarketCap that allows cryptocurrency users to learn about new cryptocurrencies and earn some of […]

25 October, 2020
Binance,Bitcoin,Cryptocurrency,Exchange Platforms

You Can Now Spend BNB and BUSD With All Shopify Merchants

Shopify, the all-in-one online commerce website, now allows all of its merchants to accept Binance’s tokens BNB and BUSD via Alchemy Pay. Alchemy Pay, a worldwide cryptocurrency payment solution provider has worked with Binance and Shopify to integrate BNB and BUSD for payments to all Shopify merchants. Shopify is the worlds largest e-commerce platform with […]

23 October, 2020