DeutschA major advantage of cryptocurrencies, which investors and traders also appreciate, is their independence from banks and states. In particular, the fact that the value of cryptocurrencies cannot be influenced by central banks and thus indirectly by governments, already suggests that digital currencies can be a sensible addition to the portfolio, especially in times of crisis. In economic crises, it is primarily states or central banks that influence currencies and are sometimes even partly responsible for a certain devaluation of money. At least this risk does not exist with crisis cryptocurrencies. A point that makes cryptocurrencies quite interesting as an addition to the portfolio.
Built-in Inflation Protection for Digital Currencies
Another point that also suggests that cryptocurrencies can be a good addition to the portfolio for times of crisis in the long term is the built-in inflation protection. For most digital currencies, there can only be a limited number of coins, so there is no risk, as with central bank money, that a devaluation of money will occur due to a flood of money on the market. Instead, digital currencies have built-in inflation protection, which, of course, can be particularly important in times of crisis.
Interesting Investment despite Uncertain Performance
From a purely investment point of view, an investment in cryptocurrencies is quite interesting. However, only a small portion of the assets should actually be used to invest in cryptocurrencies. Therefore, it can only be a small addition to the portfolio, which, however, should not account for more than a maximum of five to ten percent of the total capital available for investment purposes.
In summary, the following facts, among others, suggest that cryptocurrencies can be an interesting portfolio addition for times of crisis:
- Integrated inflation protection
- No influence by banks, states or central banks
- Interesting investment as such
- Broader acceptance possible in the future
Conclusion on Cryptocurrencies as an Addition to the Portfolio
In summary, it can be stated that cryptocurrencies can be an interesting portfolio addition. Especially in times of crisis, digital currencies can distinguish themselves through advantages, namely automatic inflation protection and the fact that there can be no influence by the central banks and governments. However, you should only invest a small portion of your assets in cryptocoins, at least in the long term. Experts recommend in this regard that a maximum of between five and ten percent of the capital available for investment should flow into digital currencies.
