When investing in cryptocurrencies, you must understand that they are a highly volatile asset class. Some would call the entire category "speculative," and many digital coins fit that description for every investor. However, if you're willing to take on that risk, it's possible to see significant returns.

One key difference between investing in cryptocurrencies and traditional stocks is that the crypto market is still relatively new and not as well regulated, which can make it more risky. However, it also means that there is potential for higher returns. More risk can equal more substantial rewards, assuming that things work out as planned. You're getting compensated in return for the risk you're taking on.

Now, you can manage the crypto risks by sticking to the safer options. Just like how you wouldn't want to put all of your money into a single penny stock, you don't want to put all of your money into one unproven token, perhaps one featuring a cute dog mascot. (Ahem.) Instead, you want to diversify your portfolio by investing in a variety of different, established cryptocurrencies. Let me show you a few examples that could provide a robust foundation for your crypto portfolio today.

Continue reading

Source Fool.com