Ask any trader and they will tell you: Diversification is one of the best ways to reduce risk when trading and investing. Here at eToro, we have noticed that quite a few of our traders focus exclusively on one asset, with the most popular being the XRP crypto token. While cryptocurrencies can sometimes show great gains, they are also highly volatile investment products and can show rapid price decreases.
For these traders, it could be wise to diversify their portfolios with other assets – and there are hundreds available on the eToro platform. Diversifying your portfolio is not only one of the most efficient ways to reduce risk. It can also help traders hedge potential losses.
One solution would be to remain in the crypto market, but add more depth to a portfolio by diversifying with other cryptocurrencies. However, traders and investors might also want to explore the following assets, to add even more stability to their portfolios:
Stocks
eToro clients can invest in some of the biggest companies in the world, from Wall Street, through Europe to Asia. Here are some stocks that have been trending recently:
- AMD
- Square
- Cronos
This is not investment advice. Your capital is at risk.
ETFs
Exchange-Traded Funds are some of the most popular investment products, as they offer exposure to a basket of assets, with many diversified trading strategies. Here are some ETFs that showed significant gains recently:
- RSX
- IJPE.L
- XLE
This is not investment advice. Your capital is at risk.
Smart Portfolios
A long-term, fully allocated, managed investment strategy. eToro offers a variety of ready-made Portfolios, offering diversified thematic investment strategies. All Smart Portfolios are created and managed by eToro’s Investment Committee and are rebalanced periodically to ensure maximum efficiency.
This is not investment advice. Your capital is at risk.
Cryptocurrencies can fluctuate widely in price and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. This is not investment advice. Your capital is at risk.