Cryptocurrency analyst Lark Davis has updated his followers on a high-risk, high-reward portfolio of crypto-assets for generating maximum gains in 2021.
In a video published December 4, Davis outlined a plan for investing $100 in bitcoin and altcoins every week in order to make the most returns in the coming year. Davis recommended investors anchor their portfolio with lower risk, high market cap coins such as bitcoin and ethereum to begin with.
He said,
Even with such a [risky] portfolio though, I still think it’s a good idea to have exposure to Bitcoin at 20% and exposure to Ethereum at 10%. Now, this is going to help just kind of reduce that danger within this portfolio while also allowing for a lot of growth with the other 70% of the coins.
Davis told investors to also consider adding two medium-cap altcoins, such as Uniswap’s UNI or AAVE in order to balance their risk-reward ratio.
The popular trader explained the remaining 70 percent of the portfolio should be allocated to low-cap gems that provide the most upside and growth-potential in 2021.
He said,
And then for the rest of the portfolio, we’re going to be looking at higher risk coins. So we have some low and medium stuff in there already to kind of reduce the risk in our high-risk portfolio, and then we’re going to go 10% into each of the following five coins.
Davis listed Injective Protocol (INJ), DIA, AXIE Infinity (AXS), Orion Protocol (ORN) and Matic Network (MATIC) as his primary altcoins for investors to consider.
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