$ETH 3 REASONS TO ADD 👉🚦🚦 💰👀

📌Diversification

It is very difficult to predict the future with certainty. With dot-com, investors were right to predict that the Internet would grow, but they failed to predict which companies would succeed. Cryptocurrencies are in a similar situation; Although they are a disruptive and innovative technology, it is difficult to predict which projects will be successful in the future.

📌Ethereum's Unique Technology

Ethereum serves a different purpose than Bitcoin, as a platform for smart contracts and decentralized applications (dApps). While Bitcoin can be considered digital gold, Ethereum should be considered more of a programmable blockchain. Thousands of projects are being developed on the Ethereum network, and these projects have the potential to increase the value of Ethereum.

The market value of Ethereum is around $420 billion. This value is approximately one-third of Bitcoin's $1.3 trillion market value. 📌Historical Analysis and Performance

Historical data shows that adding Ethereum to a portfolio offers better absolute and risk-adjusted returns than just holding $BTC . Below is an analysis showing the effects of adding ETH over a full crypto market cycle:

📍Absolute Return: A portfolio consisting of ETH and BTC provided a higher return than a portfolio consisting of only BTC.

📍Risk Adjusted Return: Although ETH has higher volatility, its addition to the portfolio improved the overall risk/return ratio.

📍For example, in the 2017 bull market, compared to a portfolio investing only in BTC, a portfolio with ETH added achieved higher returns. Similarly, during the 2018 bear market, a portfolio with a mix of ETH and BTC offered better balance than a portfolio with only BTC.👍