In this article, we will follow different investment strategies with you, our esteemed readers, and see what results we get. We will deal with these investments with real data and reveal the best result for you. You may have heard of cryptocurrencies that will rocket from many experts or news. Or likewise those who say that you should create a basket instead of investing all of your investments in a cryptocurrency. Both of these statements are always present. So which one is real!
With a study we prepared for you today, we will show you how you can keep your money safe even in risky assets. In this study, we will see whether you should invest your money in the crypto money you trust or make a basket. Here are the details of the study…
The data we prepared consists of 10 digital currencies invested in Turkey with different technologies. We prepared the 3-month return rates using the price of these 10 cryptocurrencies on January 1, 2023 and the price on April 1, 2023. We selected these altcoins as a sample homogeneously. Here is the table we prepared;
As can be seen in this table, while there are cryptocurrencies that have gained 20 percent in value, there are also those that have increased by more than 300 percent. Here we have run two scenarios. Would the investor earn more if he believed in and invested in one of these altcoins, or would he earn when he made a basket and bought 10 altcoins?
The average return of these 10 altcoins is 84.6%. So this average return is more than the return of the seven cryptocurrencies out of these ten coins. Only 3 cryptocurrencies were able to exceed the average return. This means that making a basket will yield 70% more than investing in a cryptocurrency you believe in.
Rather than trying to find coins like FETC in so many cryptocurrencies, it seems more logical to make a basket and minimize the risks and benefit from every rise. Many market experts may suggest that you make a basket, but with the difference of KoinFinans, we wanted to show you, our valued readers, in a real scenario. Here’s the hard data, so which strategy do you prefer: find an altcoin like FETC or diversify your portfolio? You can share it with us in the comments!
Finally, it is worth remembering that the digital currencies market is highly volatile and investors should always take risk into account.
You can follow the current price action here.