Does crypto make your portfolio less risky? Only if you do it right, experts say
Crypto tends to move with stocks during broad market sell-offs because digital assets are a "hybrid" between diversifying assets and growth assets, Willis said. Growth assets tend to have high potential for investment returns but are also high-risk, she said. Correlations can also change over time, experts said.
- ▪Crypto tends to move with stocks during broad market sell-offs because digital assets are a "hybrid" between diversifying assets and growth assets, Willis said.
- ▪Growth assets tend to have high potential for investment returns but are also high-risk, she said.
- ▪Correlations can also change over time, experts said.
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Crypto tends to move with stocks during broad market sell-offs because digital assets are a "hybrid" between diversifying assets and growth assets, Willis said. Growth assets tend to have high potential for investment returns but are also high-risk, she said. While all types of crypto don't necessarily move in tandem with bitcoin, it's the primary driver of the asset class's returns since it has the largest market share, she said."When investors start to get spooked a little bit, and get rid of their risk-on assets, crypto gets bundled in with that," Willis said.In short: Don't rely on crypto as your only diversifier, she said. Correlations can also change over time, experts said.
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