The cryptocurrency space is flooded with coins and tokens all asking for your attention as a potential investment. As an investor, determining which assets to include in your portfolio will be difficult. While it is subjective and varies depending on an individual’s risk appetite and financial needs, you can always establish a balance to protect your investments while maximizing long-term returns. Over the last decade, astute investors have gained a greater understanding of the revolutionary ideas and technologies that underpin Bitcoin. It’s reminiscent of the early days of the internet in the 1990s. We all knew the internet would have a significant impact on how we live, but it was difficult to foresee how our lives would change and which new companies would drive that transformation at the time. Advisors have been dismissive of cryptocurrency since its inception in 2009. And it’s understandable: Due to legal constraints, advisors can’t simply log on to Kraken, Gemini, or Coinbase and add a small amount of cryptocurrency to their client’s portfolios, some of which they’ve been managing for decades. Advisors Idea of a Perfect Portfolio Advisors’ ideas about good portfolio management, according to Ric Edelman, founder of Digital Assets Council of Financial Professionals (DACFP), are based on modern portfolio theory. This concept was shaped by Nobel Prize-winning economists such as Harry Markowitz, William Sharpe, and Eugene Fam...
