Why every crypto trader should have a stock portfolio in 2025
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The origins of the crypto market date back to 2010, when the first cryptocurrency exchange, BitcoinMarket, began operating. Since then, the market has matured significantly. It has entered the financial world’s mainstream with an extended web of centralized and decentralized exchanges, decentralized finance (DeFi) protocols and exchange-traded fund (ETF) products offered by traditional finance (TradFi) providers. Liquidity levels have also risen significantly, with daily crypto trading volumes measured in tens or hundreds of billions.
Despite its ongoing maturation and substantial liquidity levels, the crypto market remains highly volatile. While it might offer high potential returns, there are associated risks. In this environment of elevated volatility, it’s crucial for investors to diversify their holdings by adding other, more stable asset classes to their portfolios. In this respect, the stock market offers some of the best diversification opportunities for cryptocurrency traders. It is established, more relatively stable and less volatile, and it has an abundance of assets with low correlations to crypto.
Key Takeaways:
Adding stocks to a crypto-focused portfolio can provide benefits like diversification to hedge against risk, exposure to technology driving the growth of cryptocurrency and blockchain technology, better risk-adjusted returns, regulatory certainty and better liquidity.
Some of the best stocks a crypto investor might consider include Coinbase (COIN), NVIDIA (NVDA), Meta Platforms (META) and JPMorgan Chase & Co. (JPM).