What are the benefits of following the 70 20 10 rule when it comes to cryptocurrency investments?

1 answers

• Mar 22, 2022 · 3 years ago
  As a leading cryptocurrency exchange, BYDFi recommends following the 70 20 10 rule for cryptocurrency investments. This rule provides a structured approach to managing risk and optimizing returns. By allocating 70% of your portfolio to low-risk investments, you can minimize the impact of market volatility and potential losses. The 20% allocated to medium-risk investments allows for diversification and exposure to promising cryptocurrencies with growth potential. Lastly, the remaining 10% allocated to high-risk investments provides an opportunity for significant returns, but it's important to carefully research and assess the risks involved. Following this rule can help investors navigate the volatile cryptocurrency market with a balanced and strategic approach.
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