How to diversify a crypto portfolio

Crypto markets move fast — and often in cycles. While some assets rally, others cool down. That’s why portfolio diversification has become an essential strategy not only in traditional finance, but also in crypto.

Today, crypto wallets are no longer limited to tokens and coins. With xStock assets, tokenized gold, silver, and other real-world assets available onchain, users can build more balanced portfolios directly inside a crypto wallet.

This guide explains how to diversify a crypto portfolio, which assets to consider, and how to manage everything in NOW Wallet.

What diversification actually means in crypto

Diversification isn’t about predicting which asset will perform best next. It’s about avoiding dependency on a single outcome.

When a portfolio relies on one coin, one sector, or one narrative, every market move hits harder. Diversification spreads exposure across assets that behave differently under the same conditions.

In practice, diversification helps to:

• limit the impact of sudden price swings

• combine aggressive and more stable instruments

• stay flexible when market trends shift

• avoid overexposure to a single narrative

It doesn’t remove risk — it reshapes it.

Crypto as a foundation, not the whole picture

Cryptocurrencies often remain the starting point of any onchain portfolio. They offer growth potential, innovation exposure, and liquidity.

At the same time, crypto assets tend to move together during strong market events. When sentiment flips, correlations increase. That’s where adding other asset types starts to make sense.

xStock assets: stock market exposure onchain

xStock assets are blockchain-based tokens designed to reflect traditional stock market performance while remaining fully compatible with crypto infrastructure.

Popular examples include:

• TSLAX — Tesla-related stock exposure

• NVDAX — Nvidia-related stock exposure

• QQQX — Nasdaq-100-style index exposure

• CRCLX — Circle-related stock exposure

• SPYX — S&P 500-style market exposure

• MSTRX — MicroStrategy-related exposure

xStock assets allow users to track stock market movements without opening a brokerage account or managing offchain accounts. They live onchain and can be stored alongside other crypto assets.

Tokenized gold and silver as portfolio stabilizers

Precious metals are often discussed when markets feel uncertain. In crypto, exposure to metals comes through tokenized gold and silver assets.

Common examples include XAUt and PAXG, which track the price of gold while operating on blockchain rails.

Gold and silver don’t follow the same logic as high-risk assets. For some portfolios, they act as a counterbalance rather than a growth driver.

Why mixing asset types changes portfolio behavior

Each asset class reacts differently to the same events:

• Crypto responds quickly to narratives and sentiment

• Stocks reflect company performance and macro trends

• Gold and silver often attract capital during uncertainty

Holding them together reduces reliance on any single market reaction.

When diversification becomes relevant

Users usually think about diversification when:

• most of their portfolio is concentrated in crypto

• they want exposure beyond tokens without leaving crypto

• volatility feels too aggressive

• managing everything in one self-custody wallet matters

Diversification is rarely about complexity — it’s about optionality.

Managing diversified assets in NOW Wallet

NOW Wallet supports multiple asset categories in one self-custody environment.

Inside NOW Wallet, users can:

• store cryptocurrencies and tokens

• buy and manage xStock assets such as TSLAX, SPYX, and others

• swap crypto into tokenized gold and silver, including XAUt and PAXG

• manage all assets from a single interface

• keep full control over private keys

No platform switching is required.

Example: swapping BTC to xStock assets or tokenized gold

A typical flow looks like this:

1. Open NOW Wallet

2. Tap Exchange and select the asset you want to exchange (in this case Bitcoin)

3. Choose an asset to diversify into:

   • xStock assets like TSLAX, NVDAX, QQQX, SPYX

   • Tokenized gold such as XAUt or PAXG

4. Enter the amount of BTC you want to swap

5. Confirm the exchange

6. Receive the selected RWA asset directly into your wallet

No brokerage accounts, no offchain transfers, no platform switching.

What a diversified crypto portfolio may include

There’s no universal allocation model. A diversified setup may combine:

• crypto assets for growth exposure

• xStock assets for stock market alignment

• tokenized metals for balance

• stable assets for liquidity and volatility control

The structure depends on personal goals, time horizon, and risk tolerance.

Things to understand before diversifying

Before adding new asset types, keep in mind:

• xStock assets and tokenized commodities are blockchain instruments, not brokerage products

• price behavior tracks real-world markets but settles onchain

• availability depends on providers and supported regions

• liquidity and fees vary between assets

Always review asset details before adding them to a portfolio.

FAQ

What does diversification mean in a crypto portfolio?

It means spreading exposure across different asset categories to avoid reliance on a single market or narrative.

Are xStock assets actual shares?

No. xStock assets provide market exposure but do not represent direct ownership of brokerage shares.

Why include gold or silver in crypto?

Precious metals often behave differently from crypto assets and may help balance portfolio volatility.

Can all assets be managed in one wallet?

Yes. NOW Wallet allows users to buy, store, swap, and manage crypto, xStock assets, and tokenized metals in one self-custody wallet.

Is diversification useful for beginners?

Yes. Diversification can help reduce overexposure and make portfolio behavior more predictable.