According to CoinDesk, the digital assets market, particularly cryptocurrency, has evolved into a flourishing, multi-sector ecosystem since the debut of bitcoin (BTC) in 2009. However, there are still some common misconceptions about the potential risks associated with investing in digital assets. This article aims to debunk these misconceptions and provide a clearer understanding of the digital asset investment landscape.

Firstly, volatility is not always a bad thing. While it is true that digital assets can experience significant price fluctuations, there is also potential for upside gains. A well-constructed investment portfolio can use volatility to its advantage, with professional advisers setting frequent rebalances and buying and selling orders at certain thresholds.

Secondly, digital assets do not always carry too much risk. A balanced and diversified portfolio can help minimize concentration risk and hedge against inflationary environments. A standard allocation of around 2% to digital assets can provide significant growth potential while minimizing downside risk.

Lastly, digital assets are becoming more mainstream, with even risk-averse investors gaining exposure to the industry through established brands that are embracing disruptive technologies. For example, global payments giant Visa recently announced an expansion of its stablecoin settlement capabilities. The digital asset industry is still in its infancy, but the potential use cases and investment opportunities are vast and exciting.