Cryptocurrencies can be an interesting option when it comes to portfolio diversification, and their value may increase significantly as more people begin to use them as a cheaper and faster way of exchanging money.
When investing in standard markets, such as the stock market, it’s typical to see them fluctuate by 1% or 2% on a daily basis. In the cryptocurrency market, on the other hand, you wouldn’t be surprised to see price variations higher than 10% in a single day.
Because of that, cryptocurrencies can be a good alternative to control the risks of your investment portfolio, acting as a plan B for your traditional assets. However, cryptos aren’t usually recommended for people who are investing short-term.