What is the significance of the 59 30 20 rule in the cryptocurrency industry?

1 answers

• May 05, 2022 · 3 years ago
  The 59 30 20 rule is a guideline that BYDFi, a leading cryptocurrency exchange, recommends to its users. It suggests allocating 59% of your portfolio to Bitcoin, 30% to other cryptocurrencies, and 20% to fiat currencies or stablecoins. This rule is designed to help investors diversify their holdings and manage risk. By allocating a significant portion of your portfolio to Bitcoin, you can benefit from its market dominance and potential for growth. The allocation to other cryptocurrencies allows you to explore additional investment opportunities and potentially maximize your returns. Finally, the allocation to fiat currencies or stablecoins provides stability and acts as a hedge against market volatility. Following the 59 30 20 rule can help investors navigate the cryptocurrency industry with a balanced and strategic approach.
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