A cryptocurrency slowdown raises safety concerns and emphasizes asset selection. Investors often shift to safer options like Bitcoin and Ethereum or stablecoins during price drops. Experts recommend diversifying outside crypto into stable options like corporate bonds, real estate, and gold. Diversification into emerging blockchain sectors is suggested for growth and risk management. A “Core Satellite model” suggests a diversified portfolio, combining core assets like Bitcoin with satellite diversifiers like DEFI and stablecoins.
Passive income remains attractive but risky during market downturns. Caution is advised in pursuing high yields due to underlying risks. Staking within chains is considered relatively safer, but risks exist in outsourcing to Defi or third parties. Options-based coverage and traditional income generators are recommended to manage risks. Understanding asset risks and maintaining a balanced portfolio with a mix of crypto, altcoins, and traditional assets is crucial.
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