Itaú Unibanco, Brazil‘s largest bank by total assets, has advised on how much to invest in Bitcoin.
Renato Ide, the company’s head of beta strategies and responsible investment, recommended allocating 1% to 3% of capital to BTC purchases. He also cautioned against rushing to buy cryptocurrency at any cost and instead suggested focusing on the long-term.
The idea is not to make cryptocurrency the basis of an investment portfolio, but to generate profits that are not tied to cycles in the national market (apparently the stock market), to protect against the devaluation of fiat currency and to increase the potential for long-term growth in investment profits, noted Eid.
Renato Id
Employees of American banks Bank of America and Morgan Stanley share the opinion of their Brazilian colleagues and Recommend Invest up to 4% of your funds in cryptocurrencies. As Chris Hyzy, Chief Investment Officer at Bank of America’s Private Banking Division, stated, the proportion of digital assets in a portfolio should depend on a person’s risk tolerance: the more daring they are, the more digital assets they should purchase.
In Brazil, as in Russia, the relevance of Bitcoin investments is partly due to the instability of the national currency’s exchange rate. The real’s exchange rate against the dollar sometimes fluctuates by 4-5% per week, while the ruble’s volatility periodically reaches 6% over the same period.