Despite its collapse, more than 2.4 million Argentines bet on digital currencies. How to add them to an investment portfolio without unbalancing it
For sebastian the teacher
12/24/2022 – 5:06 p.m.
Bitcoin (BTC) and cryptocurrencies have a strong presence in Argentina, by becoming an alternative to dollarize investments in a country where the stocks prevent millions of people from accessing the North American currency (at the official price) and high inflation punishes those who leave their pesos sleeping in a savings account or under the mattress.
But adding digital currencies to the portfolio (and defining the amount of money that will be allocated for their purchase) is not a simple matter. Its volatility and the risks involved in incorporating this type of alternative into a portfolio must be taken into account.
A clear example of this far from minor characteristic is the crisis that the market went through with the collapse of the FTX exchange and the fall of its FTT token, which hit BTC and ETH hard and left Solana (SOL) on the verge of being knocked out. cryptocurrency that lost more than 40% of its value in a few hours.
How much money to allocate to the purchase of cryptocurrencies
The adverse outlook facing cryptos opens the door to the dilemma of whether the time is right to buy “cheap” or whether to wait for the price to suffer another possible correction.
There are different strategies to form a robust and balanced portfolio to reduce the consequences of the collapse of a particular asset.
But in the case of Bitcoin, which is a relatively young asset compared to traditional inflation hedges (such as gold), their fluctuations in their prices affect their reliability.
Bitcoin is an investment for those who have risk tolerance
in dialogue with iProfessional, the expert in personal finance and creator of the consultancy Asesor de Inversiones Alejandro Bianchi makes it a sacred rule that Those who wish to add BTC and company to their investment portfolio, and have a low risk tolerance, should not allocate a percentage greater than 5% of their savings.
On the other hand, those who are willing to assume the consequences that a fall can cause can take risks and allocate more money, but it will be key that those who opt for this option, analyze the projects in which you are trusting your money and diversify your positions.
Strategies recommended by experts, according to the profile of the crypto investor
consulted by iProfessional, Federico Golberg, CEO of the Tienda Crypto exchange, warns that It should be taken into account that BTC is volatile and, therefore, it is considered a risky asset and designed for the long term.
Cryptocurrency expert Gabriel Vago, CEO of the ArgenBTC exchange, adds that The advance of digital currencies will be so important that in the future “it will be an obligation rather than an option” their use.
Regarding how to build a diverse portfolio with this type of asset, the specialist recommends that a conservative profile Consider the possibility of allocating at least 20% of your crypto portfolio in Bitcoin.
For his part, Mauro Liberman, an expert in cryptocurrencies and the Metaverse, points out that those who choose to maintain cautious positions can hold a position in BTCthat is, choose to hoard it for a long time until the value of this coin created by Satoshi Nakamoto is much higher than what he originally paid.
Diversifying the investment helps reduce risk
“You can also do staking, buying coins, and keeping them locked for a certain amount of time in exchange for receiving a reward,” he adds.
Aggressive profiles of cryptocurrency users
Mariano Maisterrena, CEO of HeirloomDAO, stresses that riskier investors can bet on taking an aggressive position now, despite the ups and downs of the cryptocurrency with the largest market capitalization.
“But as long as Bitcoin doesn’t exceed 45% of all your crypto assets,” warns the expert.
Liberman places those who compulsively buy/sell any currency on the BTC pair on the opposite side of the conservatives, through different techniques of tradingactivity that consists of the constant commercialization of assets in order to obtain a profit resulting from the difference between the price they paid and the one they sold.
“The goal here is accumulate as many bitcoins as possible“, completes Liberman.
“The most correct way to approach investments is always with a balanced mix of financial and practical education, because with money anyone can buy. But knowing exactly what is being done, understanding whether the risk being assumed is appropriate for each profile, that… is priceless”, concludes Bianchi.
