A conservative portfolio may be best for most first-timers in crypto

Many would-be crypto holders are thinking of making their first moves into this sector. However, given the sheer amount of cryptocurrencies, and the many scams that are there to trap the uninitiated and the unwary, it can be quite some minefield to traverse.

With a public that is beginning to be aware of the dangers to their wealth through holding fiat currencies that are being wiped of their purchasing power more rapidly then they can spend them, many are thinking of making their first venture into cryptocurrencies, but what is best for the average small-time investor?

It must be mentioned first, that giving advice to anyone on financial matters is not the role of Crypto Daily. Normally at this juncture, it would be advised that the potential investor seek the recommendations of a fully certified financial advisor. 

However, it might very successfully be argued that many financial advisors come from the traditional financial sector, and may not fully understand the world of cryptocurrencies. 

Therefore, it would appear that the potential investor may have to spend quite some time looking for that rare breed of financial advisor who just happens to be an expert in both financial sectors.

As mentioned, there are many cryptocurrencies that are possibly there as a money grab, but there also might be some that are still relatively unnoticed, but have the potential to increase in price. 

Would a newcomer to crypto be able to spot the good ones? Probably not. Therefore, a much safer, and more conservative portfolio is perhaps the best bet.

Bitcoin is a great place to start. It’s the foremost cryptocurrency, and its scarce supply and distribution rate is known with 100% certainty. The market cap of bitcoin is already quite high, and so there may be less room for many multiples in growth.

However, if held over the longer time frame, history has shown that growth is continuing to happen. An allocation of maybe 70% in bitcoin might be a good option.

This leaves 30% to be allocated to other conservative cryptos that are more fundamentally sound than the vast majority of the rest of the field.

The higher market cap layer one blockchains might just fit that bill. Solana, Avalanche, and Luna are leading the field here. Perhaps 10% into each could be the safe play.

Once again, it must be mentioned that the price of crypto can go up as well as down. A short term time frame is not the best one to look at, and trading cryptos for those who do not have the knowledge or experience, is at best a roll of the dice in a casino.

We are at possibly the most important crossroads in the whole of financial history. It can very credibly be argued that holding fiat in the bank is an incredibly dangerous, and almost stupid thing to be doing.

Therefore it is incumbent on everyone who can, to apportion a lot of their time and energy to studying the pros and cons of fiat currencies vs the more fundamentally sound cryptocurrencies. Time spent on this pursuit will be invaluable for one’s future financial security.

Remember, search for experts who can advise you, and most importantly, diligently do your own research. The world of finance is about to change abruptly – you need to be on the right side of this change.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.