Why Crypto Portfolio Diversification Matters
Crypto portfolio diversification significantly improves risk-adjusted returns across multiple trading strategies. Our data shows diversified portfolios outperform single-asset holdings with higher Sharpe ratios, reduced drawdowns, and in some cases, superior absolute returns.
We have written multiple articles on trading strategies, such as Macd Indicator, Short-term RSI Reversal, and Trend Following. A common theme across these strategies has been the universal improvement of risk-adjusted results when we include additional assets through crypto portfolio diversification. This is not a coincidence, and implementing proper crypto asset allocation across multiple cryptocurrencies can substantially enhance your trading results.