Understanding Crypto Fundamentals: Value Investing in Cryptoassets and Management of Underlying Risks

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023

T. JeegersUnderstanding Crypto Fundamentalshttps://doi.org/10.1007/978-1-4842-9309-6_4

4. Portfolio Management Primer

Thomas Jeegers¹  

(1)

Vienna, Austria

 

Audentes fortuna iuvat. (Fortune favors the bold.)

—Virgil

Let us change perspective and look at cryptoassets from a financial portfolio management point of view. This chapter introduces the basics of portfolio management to assess the financial characteristics of cryptoassets. As the analysis shows, cryptoassets have been the most financially attractive investment of the last decade, even risk-adjusted, and could remain so for the upcoming one.

Price Fluctuations

While fundamentals define the economic value ...