Crypto Portfolio: How many Cryptocurrencies should you own?
A survey conducted by Crowdwisdom360 among 108 investors which were focused on the number of stocks and cryptocurrencies held by them. The survey sheds light on the diversification strategies employed by these investors in their portfolios.
Before we jump to the survey, let us understand what is a crypto portfolio
A crypto portfolio is a collection of cryptocurrency assets that an individual or entity owns. Similar to a traditional investment portfolio, a crypto portfolio allows investors to diversify their holdings across multiple assets to manage risk and potentially increase returns.
Investors can build their crypto portfolio through various methods, including buying and holding cryptocurrencies for the long term, trading cryptocurrencies on exchanges, or investing in cryptocurrency-related funds
Findings of the survey
For cryptocurrency holdings, the crypto portfolio is even.
- 35.62% of the crypto holders hold a moderately diversified portfolio of 5 to 10 cryptocurrencies.
- Close behind, 31.51% of investors hold less than 5 cryptocurrencies, indicating a more conservative approach to this newer asset class.
- A significant proportion (28.77%) of participants hold more than 10 cryptocurrencies, signaling a high degree of diversification within this market.
- 4.11% of respondents reported not having any cryptocurrencies in their portfolios.
With respect to the stocks the majority of investors have a highly diversified portfolio. Around 65.71% of the investors in the survey were found to hold more than 10 individual stocks.
A smaller proportion of investors (20.00%) hold a more concentrated portfolio, with less than 5 individual stocks, while 14.29% of respondents have a moderately diversified portfolio, holding between 5 and 10 stocks. Interestingly, none of the participants reported having no stocks in their portfolios.
The survey results illustrate the varying approaches investors take when diversifying their assets. While the majority of participants opt for a highly diversified stock portfolio, the distribution of crypto portfolio is more evenly spread, with a larger proportion of investors holding a moderate number of cryptocurrencies. This could be due to the relative novelty of the cryptocurrency market, as well as the higher risk and volatility associated with these assets.
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