Bitcoin is often compared to “digital gold” and is mostly uncorrelated with major asset classes. Gold stablecoins, pegged to gold’s price, could rise if tech stocks fall. Niche altcoins like privacy coins may increase in value independently of tech trends. Hedge fund managers favor Bitcoin for diversification due to its lack of correlation with other assets. Gold stablecoins like Pax Gold and Tether Gold are alternatives to traditional gold investments. Some altcoins, such as Zcash and Monero, offer unique value propositions like enhanced privacy features. The top choice for diversifying a tech-heavy portfolio remains Bitcoin due to its historical lack of correlation with major asset classes. Stocks like Netflix and Nvidia have historically outperformed Bitcoin, making them attractive investment options. The Motley Fool Stock Advisor recommended 10 stocks over Bitcoin, boasting a 968% average return compared to the S&P 500’s 197%. Dominic Basulto holds Bitcoin positions, and The Motley Fool recommends Bitcoin, Monero, and WisdomTree.

Read more at Yahoo Finance: 3 Types of Cryptocurrencies That Can Diversify a Tech-Heavy Portfolio