How To Build an Investment Portfolio

Any serious investor should have a diverse portfolio. There is a good reason behind the popularity of the phrase, “don’t put all your eggs in one basket” when it comes to assets. One basket, in this case, would be equivalent to investing in only one asset – and if the value of that one asset falls to zero, the whole investment can be lost. Choosing to invest in multiple assets is known as “diversification”. You can either invest in several asset classes, or in multiple assets from one asset category. Each asset class has a different source of value. Commodity funds, for example, invest in primary or raw agricultural products. Forex, on the other hand, is a money-market asset that trades foreign currencies.

A diversified portfolio is a good way to protect your assets in the case of one asset failing. If you have other investments, it would be possible to offset the losses of the fallen asset. This would be possible only if you have the following: Relationship It is important to consider the correlation between assets within a portfolio. One example in everyday life would be the fact that coat sales go up during winter. The positive correlation between cold weather and coat sales is therefore evident. Both the occurrence and sales of each tend to fluctuate. TogetherYou can find them here. It is important to invest in assets with a high level of liquidity. negatively Correlated, in which asset returns don’t lose or gain value at the same time.

These events and other factors are important to consider when investing in multiple asset types. It would require you to have different accounts for different assets on different platforms. This is why Digital Financial Exchange – DIFX, was created. Jeetu Kataria is the co-founder and chief executive officer of DIFX. She has been a multi-asset trader for over 30 years and is also a venture capitalist. Supported by an elite team of leaders in the worlds of banking, technology, marketing and fund management, DIFX is now a series of multi-asset trading tools wherein “cryptocurrencies can be used to trade traditional assets with the cross pairing between all assets.”

The MetaTrader5 platform allows DIFX users to trade more than 500 assets in commodities, stocks, forex and options. Some examples of MetaTrader5’s diverse trading pairs include Bitcoin vs Silver, Bitcoin Cash vs Gold, Ripple vs Swiss Franc, Litecoin vs Japanese Yen and Ethereum vs Ripple.

The vastness and complexity of building an investment portfolio become a lot more manageable when it is possible to build a portfolio in a few clicks or carry а whole investment portfolio in your pocket. DIFX Android & iOS App allow users to have in-pocket accessibility to an insured cross-asset trading platform. It also offers the fastest, most secure cryptocurrency exchange, with 24 hour support, high liquidity, and security.

Learn more about DIFX at difx.io and download the mobile application today by visiting https://linktr.ee/difx.io

 

 

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