Beyond Crypto: The Art of Portfolio Diversification With Multibank Group

In today’s rapidly evolving financial landscape, several crypto investment vehicles have blossomed and grown immensely, so much so that as of 2023, global crypto ownership rates stand at an average of 4.2% — amounting to 420+ million digital asset owners. That said, even though the potential for high returns is undeniable with crypto, the market is still prone to extreme price swings.

As can be seen above, the price of BTC, the cryptocurrency with the largest market capitalization, has remained highly inconsistent over the last 24-month stretch, with the asset scaling to a local high of $50k (Jan 2022) and a minimum of $16k (Oct 2022) during the above said time period. However, despite these uncertainties, a growing number of investors and financial professionals have continued to recognize the imperative of diversifying their portfolios so as to mitigate their volatility risks.

This approach transcends the mere allocation of funds across various digital assets; rather, it encompasses the judicious integration of traditional financial instruments — such as derivatives, stocks, options, bonds, etc — into one’s holdings. Such a nuanced strategy effectively marries the dynamic growth offered by crypto with the stabilizing influence of established financial vehicles, thereby crafting a robust investment portfolio primed for both stability and future growth.

Variety, the essence of sensible finance

For novice investors, portfolio diversification can entail the mixing of small, mid, and large-cap coins. This is because larger cryptos (like Bitcoin and Ethereum) offer less volatility, while mid- and low-cap coins offer the potential for higher returns, albeit with a higher degree of risk​​​​​​.

– Advertisement –

However, true diversification extends beyond just cryptocurrencies, involving investments across different asset classes, including real estate, precious metals, derivatives, etc. One company exemplifying this diversity-based approach is the MultiBank Group.

Established in 2005, the firm has been recognized as one of the largest financial derivatives institutions in the world, operating its offices across 25 different locations globally and boasting a daily trading volume of $12.1 billion.

The group’s recent foray into the crypto sphere with its MultiBank.io offering signifies its recognition of the growing importance of digital assets. However, not abandoning its roots in traditional finance, Multibank has integrated its crypto services with traditional derivatives, thereby offering clients a comprehensive financial ecosystem​​ that encompasses the best of both worlds.

MultiBank’s approach is backed by an extensive legal framework, with the company holding over 14 regulatory licenses from various leading financial bodies globally. Lastly, the group’s most recent innovation — i.e. Multibank.io’s ‘Panic Sell’ module — provides traders with swift decision-making tools during volatile market conditions, allowing them to maximize their profits​​.

Navigating Volatility in the Crypto Sector

While there is enough reason to believe the crypto industry will be faced with volatility in the near to mid-term — especially given its nascency — the recent influx of several major mainstream entities into this space suggests that the tide is slowly turning. For instance,  a recent survey suggests that 91% of the world’s largest institutional investors are interested in investing in tokenized assets.

Therefore, as we head to a future driven by decentralized technologies, it stands to reason that the entry of TradFi giants like the Multibank Group into the crypto arena stands to help the sector not only mature faster but also make it safer and more hospitable for investors possessing a low-risk appetite.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://thecryptobasic.com/2023/12/01/beyond-crypto-the-art-of-portfolio-diversification-with-multibank-group/?utm_source=rss&utm_medium=rss&utm_campaign=beyond-crypto-the-art-of-portfolio-diversification-with-multibank-group