Kevin O’Leary: I keep the bulk of my portfolio in bitcoins and ethers – Bits Media

The Shark Tank podcast host thinks, that in a volatile market it is advisable to diversify the crypto portfolio, distributing investments according to the rules of traditional markets.

Kevin O’Leary (Kevin O’Leary) stated, that when forming a cryptocurrency portfolio it uses the same strategy, same as in the stock market.

“11 economic sectors are represented in S&P 500. The theory tells you: never invest again 20% to any one of the sectors, and no more 5% in any of the stocks or bonds. This is diversification, which sovereign funds use", - explains an experienced investor.

The presenter uses the same strategy to invest in Bitcoin (BTC), essential (ETH), stablecoin USDC, Level 2 scaling solution Polygon (MATIC) and Solana layer 1 blockchain protocol (SOL).

 "I think, cryptocurrencies will become the 12th sector of the economy in ten years. It means, what can I invest up to 20% operating capital into the cryptocurrency market and diversify the portfolio. Currently I invest most in Ethereum and Bitcoin. I have large positions in USDC and FTX, I'm a big fan of that, What does Sam Bankman-Fried do?. Invested a little less in Polygon, I liked his attempt to reduce gas prices, which makes a lot of sense for India and other developing countries. I like that, what happens in all Solana projects".

O'Leary stressed the particular importance of portfolio diversification during times of volatility:

“All investments work only in conditions of diversification. Eight weeks ago my portfolio was at 21%, it has now fallen by about 18%. There has been a big correction in the market, but you have to get used to it".

The billionaire doesn't mind, for the government to once and for all clarify the regulation of stablecoins and allow the market to compete freely within the boundaries of the rules. According to him, he could then invest a significant portion of his capital in the digital asset market, backed by reserves in fiat currency.

Last month, Real Vision CEO Raoul Pal (Raoul Pal) stated, that cryptocurrencies like ether will deprive Bitcoin of its leadership in the future.