Cryptocurrencies such as Bitcoin and Ethereum have gone a long way, with over 5,000 digital currencies now in circulation. Despite the fact that only the top ten cryptocurrencies are considered the most tradeable and account for more than 70% of the market, their tremendous adoption and population say volumes about the condition of crypto.

As you progress down the cryptocurrency "rabbit hole," you'll come across a variety of cryptocurrencies, often known as "coins." From the most well-known coins, such as Bitcoin and Ethereum, to the lesser-known coins, such as Solana and Polkadot, the crypto market can be difficult to navigate.

So, how should you invest in this complicated market?

How can one acquire the best exposure without understanding many coins and reading countless study reports?

Let us now examine the outcomes.

Alternative coins are a source of returns.

Despite the fact that Bitcoin gets all of the attention, alternative cryptocurrencies known as "alt-coins" have been posting even better returns.

Over the past year, the overall cryptocurrency market size (minus Bitcoin) has increased by +772 percent (compared to Bitcoin's +300 percent increase). This demonstrates that alternative coins are propelling the bitcoin sector forwards. This is due, in part, to the growth of numerous cryptocurrency sub-sectors, such as decentralised finance (DeFi) and non-fungible tokens (NFTs).

DeFi is a cryptocurrency industry sub-sector that competes with traditional financial institutions such as banks, insurance firms, and stockbrokers by allowing entrepreneurs to develop semi-automated trading and lending platforms atop blockchain networks.

In the digital world, NFTs are “one-of-a-kind” assets that can be purchased and sold just like any other piece of property. Digital tokens can be viewed as certificates of ownership for virtual assets (such as in-app purchases and digital art) or physical assets (such as real-life paintings and even houses). These ownership certificates are kept on a blockchain.

With more than 30 times the sales of 2020, the NFT market reached new highs in 2021, which explains why numerous blockchain networks allowing these transactions have gained traction.

Because the cryptocurrency ecosystem is still in its early stages, every coin is vying for market share, but with that comes potential.

Many outperforming returns can be discovered outside of Bitcoin and Ethereum's traditional regions.

A Closer Examine: Individual Coins

Solana (+4,006 percent ), Cardano (+2,007 percent ), Binance coin (+976 percent ), and Ethereum (+626 percent ) have all outperformed Bitcoin (+255 percent ) over the last year.

This demonstrates that if you don't hold some of these "lesser-known" coins, you may be losing out on some very amazing returns.

However, how can we know which coins to include?

At first look, the cryptocurrency market can appear to be a confusing area, particularly for those unfamiliar with it.

Thousands of blockchain-based projects are being developed, and a lot of complicated language and technical slang is being spread like wildfire, much like the internet boom of the early 2000s.

This makes it nearly impossible to identify the next Amazon or Google of the cryptocurrency sector and, even more difficult, to keep them for an extended length of time.

It ultimately boils down to diversifying your cryptocurrency investments.

Diversification is a fundamental element of effective investing, and it is probably even more vital in the case of cryptocurrencies.

The act of investing your money into different cryptocurrencies to reduce risk if one or more projects perform poorly is referred to as crypto portfolio diversification.

Many cryptocurrency investors only hold one coin, such as Bitcoin, however this technique is exceedingly risky because your whole return is now tied on the success or failure of one coin.

To make matters more difficult, the success or failure of a coin is determined by an immature market. A market where every coin is battling tooth and nail to win - and become the next ‘Amazon' success story in the crypto world. Guessing which crypto project would win is not only a risk, but also a mistake as an investment, given that some of these coins have only a few years of experience.

So, how can you get started with cryptocurrency in a secure and safe manner?

One strategy for gaining exposure to potential winners and increasing your chances of owning the next Bitcoin is to buy in a ready-made "Bundle" of cryptocurrencies. This gives you an equal opportunity to enhance your profits across numerous cryptocurrencies rather than just one, and it increases your chances of catching multiple winners each month if your diversified portfolio is modified monthly to monitor the top assets at the time.

Consider that, whereas Bitcoin has increased by +255 percent in the last year, Revix's Top 10 Bundle (equally weighted across the top ten cryptos as assessed by market cap) has increased by almost +490 percent. You would have been significantly better off investing in the Top 10 Bundle than in Bitcoin alone.

What's more, because the Revix Top 10 Bundle is equally weighted rather than market cap weighted, it lends greater weight to the high performing "alt-coins" mentioned earlier. As a result, when compared to a market cap weighted top 10 index, the Revix Bundle outperforms by more than 100% over the course of a year.

“The value of diversity is a well-researched and acknowledged component of investing,” says Sean Sanders, CEO of crypto investment business Revix, which is funded by JSE-listed Sabvest. A diverse crypto portfolio will provide you with superior risk-adjusted returns and, in many cases, higher absolute returns over time, regardless of how you slice and dice the data. This has become very clear in the previous year.”

“Diversification is effective in every asset class on the planet. It should come as no surprise that it also works in crypto,” Sanders continues.

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