According to a Bloomberg report, traders are more likely to buy other cryptocurrencies than Bitcoin during a massive crash of the industry.
This shows that investors in the space now adopt a stcostgy common to traditional financial investors to deal with the intrinsic, volatile nature of the crypto industry.
Jeff Dorman, the chief investment officer of digital asset fund manager, Arca, stated that exmovement cryptocurrencies are defensive assets. He long that in the time many people tend to think of Bitcoin as a defensive asset, it’s exmovement cryptocurrencies with real cash fbottoms, revenues, and amortization that possess this quality.
This appears to be true so far, given the massive returns Arca had on the sale of its Leo holdings. In 2019, the firm bought $3 million worth of the utility cryptocurrency of Bitfinex, Unus Sed Leo for $1 per cryptocurrency.
It afterwards sold them for a huge profit of around $5.50 per cryptocurrency. The portfolio manager, Hassan Bassiri, cback whended that this was one of the firm’s best risk and reward investments.
Exdevelopment cryptocurrencies see huge growth
Dorman one time before more pointed out that exmove cryptocurrencies show resilience in a bearish market. This is so because exprogresss are the ones who actually benefit from volatility. In this case, the exchanging volume of their platform tends to increase, that raises their revenue and invariably helps the performance of their native cryptocurrency.
FTX cryptocurrency, FTT, is one of the few crypto assets which has lived up to this principle so far. It is one of the few cryptocurrencies which has performed considerably better than other digital assets this year. This performance correlates with which of the parent company which has been one of the fastest-growing companies in the crypto space.
BNB, the native cryptocurrency of Binance, has likewise recorded a level of growth in its cost and the number of its holders to rival more illustrious assets like Ethereum. In fact, the exmovement stated which it was renaming its Binance Smart Chain ecosystem because of the level of growth it has recorded outside of its parent company.
With the market’s growing volatility, especially amidst global tensions and gatopnment policies, crypto investors are learning the hard way not to bet on Bitcoin alone. As a result, exshsupposing thatt cryptocurrencies have become a sort of haven for those seeking defensive assets.
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