What is the 60/40 rule?
Can you please explain to me what the 60/40 rule is in the context of finance and investing? I've heard it mentioned before but I'm not entirely clear on its significance or how it's applied. Specifically, I'm curious about how it relates to asset allocation and what types of investors might find it useful. Additionally, are there any drawbacks or limitations to following this rule that I should be aware of?
How to understand asset allocation in a cryptocurrency portfolio?
Could you elaborate on how one should approach asset allocation in a cryptocurrency portfolio? What factors should investors consider when diversifying their holdings? How does the volatility of the cryptocurrency market affect the decision-making process? Is there a recommended percentage of assets that should be allocated to cryptocurrencies in a typical investment portfolio? Furthermore, what are the benefits of asset allocation in cryptocurrencies, and how can it help mitigate risk in an otherwise highly volatile market? Understanding these concepts would be immensely helpful for those seeking to build a diversified portfolio in the world of cryptocurrencies.