Despite the raging popularity of cryptocurrency, a significant segment of people still view it skeptically: whether only using it for minor transactions for certain services, or not having a wallet at all. But cryptocurrency is not just about “soap bubbles” and the “successful success” of investors. It’s also about asset diversification – a completely real and, importantly, necessary thing.

If you want to know not only about how and why it’s necessary to diversify assets using cryptocurrency, but also want to learn directly how to invest in crypto, welcome to reading the following article – Why you should invest in cryptocurrency, and what’s the competition like?. And now, let’s get started.

What is asset diversification?

It’s worth starting with the terminology. What is diversification, exactly? It’s the distribution of your capital. Primarily, this term is used in relation to investments when a person, conditionally, invests part of their funds in buying dollars, another part in euros, and yet another part in some kind of crowns. Why do this? To reduce risks. If today the dollar has depreciated, there’s a chance to offset this through previously purchased euros, and so on.

There’s also another, more global term – asset allocation. Diversification exists within allocation, but not the other way around.

What exactly do we mean when we talk about diversification. In our case, it’s not about investments (correctly – not just about them), but rather about the safety of your assets. Because if you keep part of your funds in the bank and another in cryptocurrency, your capital will be more protected.

This is especially relevant now, when everyone interested in the news (if you’re not interested – you should be, it’s a must for every Ukrainian) could get acquainted with potential changes to the law related to mobilization. There, recall, there’s talk about freezing the assets of those conscripted citizens who did not appear at the military enlistment office. This is a very simplified explanation.

Therefore, keeping money in cryptocurrency is a good safeguard.

Is it safe to store assets in cryptocurrency?

Let’s talk about safety. Firstly, not about various algorithms, authentications, etc. It’s important that the investment itself is safe. For many, a red flag is that bitcoin constantly jumps in price. We won’t even discuss how this can play into the investor’s hands. We’re currently not talking about direct profit.

What’s more important is that today cryptocurrency represents a large variety of different coins, so-called altcoins. All cryptocurrencies except bitcoin are considered altcoins. Among altcoins, there are stablecoins – these are coins whose value is tied to a specific fiat. For example, USDT is a stablecoin that mimics the dollar. That’s why 1 USDT = 1 USD (sometimes with a difference of a cent or a thousandth of a cent).

So, if you don’t want to buy bitcoin today for 40,000$, and tomorrow it will cost three times less – you can always buy stablecoins with a stable value. This will protect your investment, and such capital distribution will also protect your funds in case of account blocking, bank closure, etc.

From a technological standpoint, blockchain, thanks to which cryptocurrency exists, is a system that is maximally protected from unauthorized interactions. So, the scariest thing that can happen to you is forgetting the password to your wallet. But even this can be fixed.

What’s the advantage of cryptocurrency?

But why all this? Why should funds be kept specifically in cryptocurrency, and not, for example, cash under a mattress? Spoiler – cash should also be kept, especially in conditions when there is a country 404 nearby, shooting at our homes and infrastructure.

One of the main advantages of cryptocurrency is its universality and prevalence. It is legalized in almost the entire civilized world. Therefore, if you find yourself abroad, you will be able to withdraw money to the card of the bank that is relevant for that country without any problems. Fiat cannot do this. Transferring money from card to card in some European country becomes possible only when we talk about cards from the same bank.

In other cases – you will face a large pile of bureaucratic obstacles, with which you probably don’t want to deal during any trip. At the same time, if you have a popular cryptocurrency wallet, withdrawing money is literally a few clicks away. And I’m not even talking about peer-to-peer options.

For those who are not at all in the loop, there’s a possibility of exchanging cryptocurrency in a peer-to-peer format (from person to person). If you want to top up an account of a specific bank, but cannot do it directly, you can create a deal with another user who will send funds where you want, in exchange for the same amount in cryptocurrency equivalent, but at their own rate.


As an active user of cryptocurrency, it’s quite difficult for me to understand why not all affiliates use it to diversify their own assets, or even for trivial micro-transactions. And I hope I’ve presented the arguments that will at least make you look more closely into how it all works. And if you need additional info, then drop by our Telegram community, where we talk about the most important things from the world of affiliate marketing.

Sincerely, Your Geek!

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