How does the 70 20 10 money rule help in managing risk and maximizing returns in the cryptocurrency market?

1 answers

• Nov 27, 2021 · 3 years ago
  The 70 20 10 money rule is a well-known principle in investment management that can also be applied to the cryptocurrency market. It suggests allocating 70% of your funds to low-risk investments, 20% to medium-risk investments, and 10% to high-risk investments. This rule helps in managing risk by diversifying your investment across different risk levels. By investing the majority of your funds in low-risk assets, you can protect your capital from significant losses in case of market downturns. At the same time, allocating a portion to medium and high-risk investments allows for potential higher returns. However, it's important to note that the cryptocurrency market is highly volatile and investing in high-risk assets can be risky. It's crucial to do thorough research and stay updated with market trends before making any investment decisions.
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