The crashes in the cryptocurrency markets are enough to make many investors nervous. For this reason, investors and companies are exploring low-risk altcoin projects. As a result of all these, investors are questioning the projects that have survived the declines of the past periods.
The leading cryptocurrency Bitcoin is at the top of the list!
As we have reported as Kriptokoin.com; Bitcoin (BTC) is a safe-haven option for many crypto investors. There’s a good reason for that. Bitcoin is one of the top cryptocurrencies by market cap. It has also proven time and again that it can survive market crashes. If you take a look at Bitcoin’s price history, you can see that it also survived the period when Bitcoin seemed to go to zero in 2011. A great fear in this period brought the BTC price to the brink of extinction.
Bitcoin emerged as a clear market benchmark for crypto investors. Bitcoin is the first cryptocurrency that people look to to understand the pulse of the crypto market. For the most part, BTC has the ability to lead the market higher or lower. When there is a drop in Bitcoin, the market in general also goes down.
Therefore, if Bitcoin is losing, there is a high probability of losing other tokens. However, Bitcoin has become much less volatile in the last few months. Therefore, this indicates that the risk of investing in BTC may be on the decline.
Leading altcoin Ethereum (ETH)
Ethereum remains the second largest cryptocurrency by market cap. In addition, ETH has the largest developer network in the world. Ethereum, like Bitcoin, is one of the projects that survived the declines in the past. Unlike altcoin projects that are only one or two years old, Ethereum was launched in 2015.
It has pros like Smart Contracts, NFTs, decentralized finance (DeFi), Web3 and blockchain games. This is a form of diversification within the ecosystem itself. Thus, it helps to neutralize some of the risks of investing in Ethereum.
In addition, ETH carried out one of the most challenging technological updates in history this year known as The Merge. The Merge’s difficulty level is stated as 10 out of 10. Some investors and analysts thought that the transition from the Proof of Work consensus mechanism to the Proof of Stake would have a serious impact on ETH. However, ETH is in an even more stable, secure and efficient position after PoS. This also reduces the risk of investing in Ethereum.
Cardano (ADA) cryptocurrency with low volatility
Finally, there is Cardano. Unlike other cryptocurrencies that have experienced huge spikes in price over the years, Cardano seems to be messing around without all the drama. Currently trading at $0.35, Cardano has never traded above $3.10 per coin. Considering that Cardano has been trading since 2017, it seems almost impossible to believe. Cardano fits the definition of a low volatility asset in many ways: Instead of big ups and downs, Cardano often seems to be trading in a very narrow band for long periods of time. time zones. It can be a great long-term game, but it can disappoint investors who rush home right away.
Part of what makes Cardano a relatively safe investment is that it requires a slow, methodical, and very academic approach to blockchain development. This sometimes infuriates investors because Cardano seems to be moving very slowly. But every update, change, tweak and new functionality in Cardano also guarantees that it really works as planned.
What does diversification do?
Of course, there are other ways to reduce the overall volatility of your crypto portfolio. For example, you can pay much more attention to the overall diversity of your crypto portfolio. The good thing is, just because you’re implementing a risk-averse strategy doesn’t mean you have to give up any of the incredible advantages possible with crypto. But it’s also been one of the best-performing assets over the past decade. Investing in crypto always has a risk. But these three cryptos can help minimize some of that risk without sacrificing any advantage.
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