You can reduce the risk of your crypto investments by planning your strategy in advance and spreading your money across different types of assets.

Set a strategy in advance

Deciding how you'll invest before you start means you don't have to react to every day-to-day change in the market. A common approach is the "100 minus your age" rule. For example, if you're 30 years old, you'd put 70% of your savings into investments with variable returns, like crypto. The remaining 30% (your age) would go into lower-risk options that offer a steady return.

Consider stable digital currencies

Stable digital currencies (also known as stablecoins), like USDC and USDT, are pegged to a more stable asset, such as the US dollar or gold. They're usually backed 1:1 by that asset, which makes them less volatile than most crypto. Bitso Earnings is a Bitso product that lets you earn a return on some of your stable digital currency holdings. It can be a lower-risk option within your portfolio.

Diversify your investments

Diversifying means spreading your money across different assets instead of putting it all into one. When one asset's return goes down, another may go up. This helps balance your overall portfolio and reduces your risk.