The cryptocurrency industry has reached an interesting point where a reversal could see prices rally to the upside. Anything is possible from here, and investors are still wondering which direction the market will take.
This is also a great opportunity for investors to diversify their cryptocurrency portfolios. Some investors already own Bitcoin (BTC) and Ethereum (ETH). This may be the time to add other promising cryptocurrencies, such as Polygon (MATIC), Shiba Inu (SHIB), and Flasko, to their portfolios.
Portfolio diversification should never be taken for granted. It should be done based on one’s risk appetite, financial goals, and capital base.
Why Crypto Diversification is Important
Cryptocurrency diversification is the act of allocating different assets to your portfolio. It is used as a hedging method. Its benefits include having exposure to potential future winners.
The cryptocurrency industry is very different from other financial markets. Cryptocurrencies are known for their volatility in either direction. If the price movements don’t go well, investors could suffer a major financial blow that some may not recover from.
With diversification, investors spread their wealth in different assets and asset classes.
The cryptocurrency market consists of different kinds of tokens. There are utility tokens, meme tokens, DeFi tokens, metaverse tokens, and fan tokens, among others. Investors must invest in some or all asset classes while maintaining a balance between high-growth potential assets and blue-chip cryptocurrencies.
Polygon (MATIC) May be a Good Investment
Polygon (MATIC) is a world-class layer-2 blockchain built atop Ethereum. Before we get into Polygon, let’s take a short dive into Ethereum.
Ethereum is a leading layer-1 blockchain that has facilitated the growth of the DeFi and NFT sectors, among others. However, Ethereum is slow and expensive. This is where Polygon comes in. Polygon improves Ethereum by making the layer-1 blockchain run cheaper and faster. Some people see Polygon as Ethereum’s scalability solution.
Away from the technical details, Polygon’s native token, MATIC, has been on fire. Polygon (MATIC) has done tremendously well in the past few months and has managed to hold onto some of its gains even as the market cooled down.
As Polygon (MATIC) is linked to Ethereum, MATIC’s price will likely go up when ETH increases. As the market strengthens, ETH is poised to soar.
Polygon (MATIC) has also shown that it can dish out technological advancements. This usually leads to MATIC’s price increase.
Time to Hold Shiba Inu (SHIB)
Shiba Inu (SHIB) took the cryptocurrency world by storm as its SHIB token, as it gained 46,000,000% in 2021. While it is unlikely that Shiba Inu (SHIB) may repeat that feat, the meme token has the potential to stage another run in the next bull cycle.
Meme tokens have become very popular because they are easy to understand. This is why Shiba Inu (SHIB) has a huge community dedicated to seeing SHIB’s price increase.
Shiba Inu (SHIB) is a great addition to one’s portfolio as the SHIB token still has some momentum to go up. Whales are adding Shiba Inu (SHIB) tokens to their portfolios. This is another vote of confidence in Shiba Inu (SHIB).
Flasko (FLSK) Could be the Next Crypto Superstar
Flasko is a new cryptocurrency project that aims to take the alternative investment industry by storm by allowing investors to invest in fine wines, whiskeys, and champagnes. The investments will be minted as fractionalized NFTs.
At the center of the Flasko ecosystem is the governance token known as FLSK. Investors can buy the FLSK token for a very low price during the Flasko presale.
Investors should add Flasko to their portfolios because Flasko could be the next big cryptocurrency. Its price, which is only $0.065, and the looming market reversal could see Flasko gaining 100x in the next bull run. Some investors hedge their portfolios, and those that want to win big have started buying promising presale projects such as Flasko.
Flasko is set to be in the spotlight in the future, and early Flasko investors will be big winners.
Source : Cryptodaily