The 80/20 Rule Applies To Crypto Investing (Here's Why)

Also known as the Pareto Principle, the 80/20 rule states that roughly 80% of results come from just 20% of efforts. This concept holds true in many areas of life and business, including crypto investing. When it comes to cryptocurrencies, the same principle applies. A small number of cryptocurrencies make up the majority of market capitalization and drive most of the profits for investors.

The Top NFT Brands Will Win

The Pareto Principle isn't meant to represent an exact ratio, but rather a general principle that can be applied to many situations. In the world of crypto investing, this means that a small number of coins and tokens will drive most of the profits for investors. The same concept applies to non-fungible tokens (NFTs) which have gained popularity in recent years.

Think about it - how many NFT brands can you name off the top of your head? Chances are, only a few come to mind. This is because just like cryptocurrencies, there are a select few NFT brands that dominate the market and capture the majority of attention and profits. As more companies and individuals enter the NFT space, this trend will likely continue.

Investors looking to capitalize on the growing interest in NFTs can use this principle to their advantage. By identifying and investing in the top NFT brands, there is a higher likelihood of seeing significant returns on investment.

Of course, this doesn't mean that smaller or lesser-known NFTs should be completely disregarded. These may still hold potential for growth and profits, but they may require more research and due diligence.

The 80/20 Principle Strategy For Risk-Adverse Investors

For investors who prefer to play it safe, the 80/20 principle can also be applied in a different way. These investors can allocate 80% of their investment portfolio to more stable and established cryptocurrencies or traditional assets, while dedicating 20% to riskier and potentially higher-yielding investments such as NFTs.

By diversifying their portfolio in this way, investors can minimize risk while still capitalizing on the potential profits of emerging markets like NFTs. This also allows for a balance between long-term stability and short-term gains.

Why 80/20 Thinking Matters For Founders

For founders and CEOs in the blockchain industry focusing on NFTs, the 80/20 principle can also provide valuable insights. By identifying and focusing on the 20% of efforts that bring in 80% of results, companies can optimize their resources and achieve maximum impact.

This is especially important in a fast-paced and highly competitive market like cryptocurrencies. By prioritizing the most impactful aspects of their business and constantly evaluating and adjusting their strategies, blockchain brands can stay ahead of the curve and continue to dominate in the industry.

Final Thoughts

Moonrig.io serves as an excellent free crypto portfolio tracker that can help investors easily apply this principle, while also providing valuable market insights for founders. With the right mindset and tools, individuals and companies can leverage the 80/20 principle to find success in the ever-evolving world of blockchain and NFTs.