# Crypto for overall portfolio diversification
**URL:** https://forum.mustachianpost.com/t/crypto-for-overall-portfolio-diversification/7017
**Category:** Investing / Cryptocurrencies
**Created:** [September 9, 2021, 12:44pm UTC](https://forum.mustachianpost.com/t/crypto-for-overall-portfolio-diversification/7017 "2021-09-09T12:44:38Z")
**Posts on this page:** 5
**Page:** 1
### Author:  [@lowyield](https://forum.mustachianpost.com/u/lowyield)
#### Post date: [September 9, 2021, 12:44pm UTC](https://forum.mustachianpost.com/t/crypto-for-overall-portfolio-diversification/7017/1 "2021-09-09T12:44:38Z")
Hi all,
I found this article most interesting, discussing whether crypto can play a role in reducing portfolio risk through diversification, and thought to share:
[https://www.tradersinsight.news/ibkr-quant-news/do-cryptocurrencies-improve-portfolio-diversification/](https://www.tradersinsight.news/ibkr-quant-news/do-cryptocurrencies-improve-portfolio-diversification/)
It’s based on this paper: [https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=3806212](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3806212)
**Disclaimer** : I did not read the original paper in full, so readers’ beware. Also it comes with a lot of caveats from the authors.
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### Author:  [@xerox5003](https://forum.mustachianpost.com/u/xerox5003)
#### Post date: [September 9, 2021, 3:03pm UTC](https://forum.mustachianpost.com/t/crypto-for-overall-portfolio-diversification/7017/2 "2021-09-09T15:03:02Z")
I replaced TQQQ with BTC and ETH. The idea is to pump every month a little amount in cryptos - like I am doing it with the „VT“ construct.
Unfortunately, I am not very disciplinated in doing that with cryptos 🙂
Only a small amount is needed (let‘s say 1-5% of your portfolio), to have a significant impact. If they are gone, you still have your „safe“ investment with VT. If they outperform… have a look on the screenshot.
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### Author:  [@nabalzbhf](https://forum.mustachianpost.com/u/nabalzbhf)
#### Post date: [September 9, 2021, 3:40pm UTC](https://forum.mustachianpost.com/t/crypto-for-overall-portfolio-diversification/7017/3 "2021-09-09T15:40:47Z")
How many more 10x do you expect? If you had invested 1% of your NW in BTC in 2019, would you rebalance now? Would you have rebalanced regularly (if so what would the chart look like)?
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### Author:  [@xerox5003](https://forum.mustachianpost.com/u/xerox5003)
#### Post date: [September 9, 2021, 5:35pm UTC](https://forum.mustachianpost.com/t/crypto-for-overall-portfolio-diversification/7017/4 "2021-09-09T17:35:16Z")
Very good question. I personally think, 100k or even 200k should be doable - but also USD 10 could be possible 🙂 At least I can pay with them in El Salvador, lol.
But it is not only because a x10 or x4 - it is also meant as a diversification tool.
Rebalancing… a good key word. I think, it is important to do that but then you probably won‘t have the full (positive) effect of its development. To rebalance it could be annoying because of the volatility.
But I think, cryptos could be an interesting asset class. Maybe you could decrease its part of your assets the older you get.
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### Author:  [@Dr.PI](https://forum.mustachianpost.com/u/Dr.PI)
#### Post date: [November 28, 2024, 10:43am UTC](https://forum.mustachianpost.com/t/crypto-for-overall-portfolio-diversification/7017/6 "2024-11-28T10:43:28Z")