Portfolio Diversification is the best way to benefit from Crypto Summer
Generally investors who have a lead will always seek a diversified portfolio across assets to help reduce variation in the market and enable sustained profits while minimizing losses in a volatile market. However, with recent inflation at record highs and Crypto’s future setting, it’s now more important than ever to have a mix of altcoin, startup projects, and big players in your portfolio.
Individual risk tolerance will dictate what asset spreads are, with those looking for higher yields to be able to spread more widely in start-up and alt projects. While more risk-averse people are likely looking for,, and more top coins cover the market for a lower gain, but more.
However, due to market conditions, it is more important than ever not to spread itself and protect itself when institutions go out, covering themselves from margin calls and avoiding asset liquidation. As an investor, you should welcome this season as an opportunity to stock up on coins at a discount, but be vibrant through your holdings and always do your research.
How long can Crypto Winter last this winter?
While no one can be sure because crypto is fast, liquid, and open 24/7, macroeconomic indicators are bleak and you need to be prepared for this long-term future, as these are some of the reasons.
The reverse repo market for a long time is now increasingly inflated with record highs in May and June. While abnormally high return repo numbers appear, this demonstrates a key indicator that there is a lack of confidence in the stock market and institutions do not trust any potential investments, instead they take a guaranteed 0.8% risk free to place funds with the Fed.
In addition, many mortgage -backed security ETFs fell with Vanguard -backed mortgage -backed security ETFs down almost 10% during the last hour. While lack of confidence from institutions and the housing market is nearing collapse, this is a clear economic indicator that there is a downturn.
Dollar-Cost Average Falling
While all of this may seem torturous and grim, fear not for retail investors, this is an opportunity to cost the average dollar down on your investment or enter the market at a much better and more affordable price. With crypto adoption continuing to boom, many DeFi and Metaverse protocols pushing paradigm-shifting technologies, and the opening of Web 3.0, crypto is not going anywhere.
It’s important that your portfolio looks slightly red, and the green days look like gold dust, you need to accept a short-term downturn in the market so you can stock up on your favorite coins and tokens. better financial situation down the line.
A Unicorn to help with various portfolios
Investing through coins and early stage protocols and diversifying your portfolio gives you the opportunity to be on high potential projects and reduce risk. That’s why projects such as Logarithmic Finance (LOG) are so interesting and could change the way investing in Presales is done.
LOG, which is currently in Presale itself, is a next -generation 3rd layer protocol that aims to address investment issues in early -stage businesses through its original token, LOG. They will do this by bridging the gap in the combined platform, allowing you to buy pre-IDO / ICO coins on any blockchain network due to cross-chain compatibility.
LOG has other features that help unlock the world of DeFi, with better swap ratios, discounts with certain partner coins, and has powerful tokenomics to make LOG a more attractive investment.
LOG has a maximum supply of 4 billion tokens, with 1.2 billion tokens included in Presale. The tokens are also community -led deflationary assets, so long -term holders can make a profit and choose the burning percentage of staking rewards on the network. Finally, if alive, no single entity will manage the ecosystem, it will be governed by the communities that are in the DeFi world as the key to winning investor trust.
While still in its infancy, LOG seems to be a good option to put in your portfolio, but this will definitely depend on your risk tolerance. If you want to learn more, you can check out the website and Litepaper.
For more information on Logarithmic Finance, check out their website or Telegram. You can find out more about the presale here.