BlockChain News

Fuel from Ethereum pays 53 % to diversify encryption

  • ETHEREUM has increased by more than 50 % since April 12, including only 37 % last week.
  • The different Blockchains serve different roles and provide multiple angles and opportunities for investment and growth.
  • Diversification can enhance returns as different projects excel at different times.

To the ordinary investor, Bitcoin It may seem to be the safest way to enter the investment in encryption. It is the largest forms of cryptocurrency, and has seen huge returns. However, it is not the only cryptocurrency there, and the focus only on bitcoin purchasing and trading may mean losing greater opportunities, according to the BitWise investment head, Matt Hogan.

In a recent note, Hougan advised that investors should diversify their property through various assets within the encryption space, rather than relying only on bitcoin, to capture wider growth capabilities and reduce the total risks. ethereumFor example, increased by 53 % last month – 37 % of that last week – thanks to the renewed interest in his last specialty Promoted.

Related to: Vitalik Buterin calls for the simplest, inspired by Bitcoin design

Lessons from history

If we looked back to the early first decade of the twentieth century, Google seemed the clear winner of the Internet mutation – and that was. Its stock has jumped by 6,309 % over the past two decades. But he was not the only winner, and he was not the biggest.

This discrimination belongs to Netflix, which could not be predicted after that. Investors who diversified early, and put their money across different sectors of the Internet – retail, social media, and video, for example – to reap better rewards than those who invest only in Google.

The same logic applies to the cryptocurrency.

The case of diversification of encryption investments

Hougan argues that Blockchain is a technology for general purposes, such as the Internet, which can be used in several ways. Inside the industry there are many different players who use Blockchain to provide value in various fields. Bitcoin is a safe and decentralized digital currency, and platforms like Solana and Ethereum support smart contracts, allowing everything from Defi to Symbolism The assets in the real world, some of them, such as ChainLink, act as a critical infrastructure within the ecosystem.

I think we will be able to do a lot of things with Blockchains that we haven’t thought about today.

Matt Hogan, Senior Investment Officer in Bitwise

This means that, based on market conditions and the wider directions, the different Blockchains may excel over others at different times. For investors who see value in Blockchain out of work as an alternative to traditional Fiat currencies – it may have come to diversify.

But if you agree with me that Blockchains is a technique for general use – for example, you are fascinated by the idea of ​​almost all the origins of the world that move on Onchain – history indicates that you want to have a basket of encryption assets: Bitcoin, Ethereum, Solana, Chainlink and more.

Matt Hogan, Senior Investment Officer in Bitwise

Related to: The American real estate agent launches a multi -capacity fund worth $ 100 million at Blockchain

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