Personal finance author and investor Ric Edelman has outlined his top strategy for navigating the digital asset markets.
Edelman, who is also the founder of the Digital Assets Council of Financial Professionals (DACFP), says in a new Real Vision interview that he’s currently “overweight” in his exposure to crypto.
The investor says that many investors, especially those new to the space, could be better off just sticking to Bitcoin and Ethereum. He says he currently has more ETH than BTC due to his belief that ETH may offer more use cases to the commercial world.
“I will tell you what I generally recommend to folks, what your crypto allocation ought to be. Number one, just Bitcoin. It’s the biggest, it’s the oldest, it’ll be the last man standing if it does blow up. Number two, Ethereum, the second biggest coin which has, I believe, a greater level of commercial application than Bitcoin. I personally own more Ethereum than Bitcoin, but not by much because the two are a big deal.
You could build a portfolio of just those two, Bitcoin and Ethereum. Together, they represent 70% of the total crypto market. They’re the Coke and Pepsi of crypto. Just do the two of them and call it a day.”
Edelman is also a fan and investor of the Bitwise Top 10 Crypto Index Trust (BITW) which aims to track a basket of the 10 biggest digital assets.
“Third, if you want to be more diversified, I’m a big fan of the Bitwise Top 10 Crypto Index trust, which is a grantor trust, there’s a lot of detail to how these things work. I’m an investor in Bitwise [and] a big fan of the company.
They call it the S&P500 (Standard and Poor’s 500) of crypto, it’s the top ten coins market cap weighted. So Bitcoin and Ethereum represent 70% of the fund, and then you got eight other coins that represent the fast growers, because the biggest won’t necessarily be the fastest growers.”