In the investment world, the cryptocurrency market has stood out for its volatility and its potential to generate significant profits. However, this volatility also brings with it considerable risks. For those who want to explore high-risk crypto assets, the question many ask is: how much of my portfolio should I allocate to these assets without exposing myself to large losses?
What Are High-Risk Cryptoassets?
High-risk crypto assets include lesser-known altcoins, memecoins, newly launched tokens, and projects with low market caps, which can experience much greater price swings than assets like Bitcoin and Ethereum. These assets are highly speculative and, while they can generate significant returns, they also have a higher likelihood of experiencing substantial losses.