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How to build an “All Weather” digital asset Portfolio like in the traditional financial world?

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“Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”

– Benjamin Graham.

What renowned British-American economist Benjamin Graham once said is more relevant today than ever. Irrespective of the asset class we choose to invest in. Especially with the rise of digital assets, investing smartly to manage and grow wealth has become a hot topic in the investment market. Digital assets have seen monumental growth in the past decade, with cryptocurrencies being their face/poster child.

Furthermore, governments of many countries and the private sector have started using and trading digital assets and cryptocurrencies. In fact, in 2021, the Central American nation El Salvador became the first country to use Bitcoin as legal tender. As such, the Bitcoin market has surpassed the $400 billion market cap. This colossal growth of cryptocurrency has given rise to trading firms as well.

But, the question is, where does all this financial power play leave us? And do traditional assets still have a role to play in the big-money game?

All weather Digital Asset Portfolio

Traditional vs Digital

Traditional investment vehicles like stocks, bonds, mutual funds, and ETFs continue to remain one of the preferred investment options. While there is a risk, these are tried and tested investment channels where people are comfortable investing. The volatility behind the digital assets/crypto is seen as a high-risk product adding the regulatory challenges.

However, the rise of digital assets like cryptocurrencies, stable coins, and NFTs has garnered significant attention. Nearly 16% of Americans say they have invested in, traded or used cryptocurrency, that’s more than 45 million people. More and more people are actively seeking the most lucrative digital asset—the next Bitcoin. Crypto investing is one of the highly searched words on google.

Despite such massive popularity, many people are still skeptical about cryptocurrencies. While these people want to buy, hold, and sell digital assets, they also wish these investment vehicles to have an underlying infrastructure to reduce potential risks. Investors want scalability, transparency, and a full spectrum of support levels to navigate the risks of the digital asset ecosystem. And there is a good reason for the skepticism.

Build all weather digital asset portfolio
Downside of modern investment assets

Fluctuations!

Cryptocurrencies are notorious for their volatility. The whole dynamic of the Bull vs Bear market is so profound that people have lost a significant amount of money overnight. Cryptocurrencies saw significant volatility in 2021, with the global market cap dropping to just above US$1 trillion in July from a $3 Trillion market cap within a span of 30 days. With such erratic fluctuations and changes in the digital assets market, product innovation is necessary.

The Way Forward

There is no denying that digital assets need to be reconciled with a broader perspective. The growth is there; the returns are lucrative; however, people have also lost large sums. It is nowhere a secure investment option as a traditional asset. Governments of many countries have even taken up initiatives to engineer a sustainable approach to digital asset investment, wherein at least principal capital is protected.

Secure investment options
Greatone - Portfolio Evaluation Platform

Introducing GreatOne

Understanding the underlying sentiment in the market, we are presenting GreatOne. Tech-driven and free-to-use, GreatOne functions as a comprehensive portfolio evaluation (CPE) platform enabling investors to monitor their investment portfolio on a single dashboard. Investors can monitor their investments, traditional or digital, and curate their portfolios to make better decisions.

 

At GreatOne, we offer a plethora of solutions, from monitoring your portfolio’s historical performance in a simulated environment to providing professional financial advice to make an educated investment. But, it’s not just wealth management; it is wealth engineering. With GreatOne’s gamification tools, you can fine-tune your investment strategies and channel your capital to more lucrative options. So, if you are an avid investor and want to organize, diagnose, and multiply your wealth, GreatOne is the place for you.

Laxmi Narayanan

About the Author

Lakshmi Naraynanan is the founding member and  managing partner of Great One digital Holdings. A  passionate serial entrepreneur with a deep passion towards giving back and impacting lives. He is a certified senior executive fellow from Harvard Kennedy Public school of government (HKS).

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