Reading time: ~2 m
The host of the shark tank podcast believes that in a volatile market, it is advisable to diversify crypto portfolios by distributing investments according to the rules of traditional markets.
Kevin O’Leary (Kevin O’Leary) said that when forming a cryptocurrency portfolio, he uses the same strategy as in the stock market.
“11 sectors of the economy are represented in the S&P 500. The theory tells you: Never invest more than 20% in any one of the sectors, and no more than 5% in any of the stocks or bonds. This is the diversification that sovereign wealth funds use, “explains an experienced investor.
The host uses the same strategy to invest in Bitcoin (BTC), Ether (ETH), the USDC stablecoin, the Polygon Second Layer Scaling Solution (MATIC), and the Solana First Layer Blockchain Protocol (SOL).
“I think cryptocurrencies in ten years will become the 12th sector of the economy. This means that I will be able to invest up to 20% of the operating capital in the cryptocurrency market and diversify the portfolio. Right now, I invest the most in Ethereum and Bitcoin. I have big positions in USDC and FTX, I’m a big fan of what Sam Bankman-Fried does. A little less invested in Polygon, I liked his attempt to reduce gas bills, which makes a lot of sense for India and other developing countries. I love what’s happening in all of Solana’s projects.”
O’Leary emphasized the particular importance of diversifying assets in a portfolio during times of volatility:
“All investments work only in conditions of diversification. Eight weeks ago, my portfolio was at 21%, now it’s down about 18%. There’s been a big correction in the market, but you have to get used to it.”
The billionaire is not against the government once and for all clarifying the regulation of stablecoins and allowing the market to compete freely within the boundaries of the rules. According to him, he could then invest a significant part of the capital in the market of digital assets backed by reserves in fiat currency.
Last month, The CEO of Real Vision, Raoul Pal, said that cryptocurrencies like ether will deprive bitcoin of leadership in the future.
#bulk #portfolio #bitcoins #ethers