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How can investors leverage EEM futures to diversify their cryptocurrency portfolio?

avatarShruti PingeDec 28, 2021 · 3 years ago3 answers

What are some strategies that investors can use to diversify their cryptocurrency portfolio using EEM futures?

How can investors leverage EEM futures to diversify their cryptocurrency portfolio?

3 answers

  • avatarDec 28, 2021 · 3 years ago
    One strategy that investors can use to diversify their cryptocurrency portfolio using EEM futures is to allocate a portion of their funds to EEM futures contracts. By doing so, they can gain exposure to the performance of emerging market equities, which can provide diversification benefits. Additionally, EEM futures can act as a hedge against potential downturns in the cryptocurrency market, as the two asset classes may not always move in tandem. However, it's important for investors to carefully consider their risk tolerance and investment goals before incorporating EEM futures into their portfolio.
  • avatarDec 28, 2021 · 3 years ago
    Investors looking to diversify their cryptocurrency portfolio can consider using EEM futures as a way to gain exposure to emerging market equities. By investing in EEM futures, investors can potentially benefit from the growth and performance of these markets, which may not be directly correlated with the cryptocurrency market. This can help reduce the overall risk of their portfolio and provide opportunities for potential returns. However, it's important for investors to conduct thorough research and seek professional advice before making any investment decisions.
  • avatarDec 28, 2021 · 3 years ago
    BYDFi, a leading digital asset exchange, offers EEM futures contracts that can be used by investors to diversify their cryptocurrency portfolio. By trading EEM futures on BYDFi, investors can gain exposure to emerging market equities and potentially benefit from their performance. This can help reduce the risk of having a concentrated cryptocurrency portfolio and provide opportunities for diversification. However, investors should carefully consider their risk tolerance and investment objectives before trading EEM futures or any other financial instrument.