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Portfolio diversification has become a prominent
subject in recent years, as assets like cryptocurrencies show an increasingly
strong correlation with major stock indices. The previously uncorrelated asset
class now trades lockstep with stocks yet is even more viciously volatile.

The recent macro environment has made which
assets you take a position in and what side of the market you are on critical
to survival. Using PrimeXBT and its
massive list of digital and traditional assets, portfolio diversification is
simplified and more accessible than ever before.

Here is a look at the list of PrimeXBT trading
instruments and how they can be used effectively to protect capital and
increase the potential for profits.

A Primer On Portfolio
Diversification Benefits

During the recent post-pandemic bull run, risk
assets like stocks and crypto took off like a pair of rockets in parallel
flight. Investors piled in as cryptocurrencies figuratively went to the
“moon.”

The only problem is that when the stock market
began to topple, the sudden and strong correlation between major US stock
indices like the Nasdaq and S&P 500 took crypto assets like Bitcoin and
Ethereum down with them. Less liquid coins like Dogecoin were decimated and
lost as much as 90% in value.

A portfolio heavy in these assets went from
several times over in the green to severely underwater and deeply in the red.
Those who moved capital to commodities like oil would have earned substantial
profits during this time. With inflation running hot,
gold also would have protected wealth better than crypto or equities. The
dollar also performed strongly relative to other currencies and assets in this
economic environment, for example.

Available Assets From
Award-Winning Margin Trading Platform

The takeaway above is that the right mix of
trading instruments can diversify a portfolio so that no opportunities are left
behind, but the risk is appropriately spread out across uncorrelated or
anti-correlated asset classes.

Well-diversified portfolios suffer less damaging
drawdowns and don’t miss out on winners as often. With PrimeXBT, traders get
even more control with long and short positions on more than 100 different
assets under just one roof.

The list of trading instruments available
includes:

Cryptocurrencies

Cryptocurrencies
have become an important new asset class for the digital age. Popular assets
include Bitcoin, Ethereum, Solana, and Dogecoin. More exotic altcoins from
trending categories like GameFi, Metaverse, DeFi, and others are also offered.

Stock Indices

You name it, and the most important stock index
is listed. This includes all major US, European, and Asian stock indices like
the Dow Jones Industrial Average, S&P 500, FTSE, DAX 30, Nikkei, and many
more.

Commodities

Commodities have
become an increasingly important part of the global macro and geopolitical
landscape, especially as inflation drives up the prices of these scarce assets.
Oil, natural gas, gold, and silver are all listed on PrimeXBT and provide some
of the most interesting diversification options.

Forex Currencies

Forex currencies have
had a dramatic shakeup since the pandemic struck, and monetary policy shifted
across the board. Global inflation made anything trading against the dollar a
decent short opportunity. PrimeXBT offers all major pairs, plenty of minors,
and a mix of exotics from emerging markets.

Portfolio
Diversification With PrimeXBT Explained

Once again, using crypto and stocks as an
example, a portfolio too heavy in these assets would have missed out on the energy sector’s incredible profits
or the safe haven provided by golf and silver. Such portfolios could also
benefit from the stability of forex currencies.

Positioning doesn’t always have to be on the
long side, either. PrimeXBT provides long and short positions for total
flexibility. Short positions can hedge against successful longs when markets
get shaky. Strategic long and shorts leave no global market untapped or
opportunity unturned.

A careful mix can protect capital against
correlation risk, minimize losses, and maximize exposure, making massive profits
infinitely more possible. Stop-loss protection, technical analysis tools, and
more add further ways traders can gain an edge in markets.

Summary: How PrimeXBT
Provides Unparalleled Portfolio Diversity

PrimeXBT offers all this and more. Margin trading
is only the tip of the iceberg. The platform is also home to the Covesting copy
trading module, yield accounts, weekly competitions, and the PrimeXBT trading
academy.

Even better, all of these tools and trading
instruments are accessible from the PrimeXBT mobile app for Android and iOS
devices. The app recently received a new update that introduced even more new
features to the already packed suite of products and services.

For those seeking unrivaled portfolio diversity
and don’t want to manage dozens of accounts or platforms to do so can find
everything they need and more at the award-winning PrimeXBT. Stop leaving your
capital at risk and check
it out now
.



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