In recent years, cryptocurrency has evolved from a fringe investment into a mainstream digital asset class that is increasingly being included in diversified portfolios. For investors looking to enhance their portfolio's risk-adjusted returns, adding a crypto allocation can be a compelling strategy. A well-balanced portfolio that includes cryptocurrencies like bitcoin or ether has the potential to offer superior returns and a higher Sharpe ratio compared to traditional portfolios made up solely of equities, bonds, or other assets. Let’s break down why this is the case and look at metrics that demonstrate the advantages of including crypto from a risk/return perspective.

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Enhanced returns

Crypto markets have shown explosive........

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