Crashes on the crypto markets can be scary, and the current needs are enough to make any crypto investor nervous. Most trading displays are red, and locating a coin in the green is challenging. Consequently, risk-averse cryptocurrency investors are seeking out safe-haven cryptocurrencies to invest in. Bitcoin, Ethereum, and Cardano are three cryptocurrencies that enable crypto investors to mitigate risk. During market meltdowns, cryptocurrencies with large market capitalizations, large development networks, and a history of surviving previous market meltdowns help lower risk. So, the best cryptocurrencies for investors who don’t want to take risks are Bitcoin (BTC 0.17%), Ethereum (ETH 0.17%), and Cardano (ADA 1.21%).

1. Bitcoin

For a good reason, Bitcoin is the most popular haven among crypto investors. Bitcoin is easily recognizable as a brand, has the most market capitalization of any cryptocurrency, and has shown time and time again that it can survive market crashes. Suppose you examine the price history of Bitcoin. In that case, you will see that it had survived multiple previous market meltdowns, including a significant scare in 2011, when it appeared like Bitcoin might reach zero.

Bitcoin has become the definitive market standard for crypto investors. Bitcoin is the first place people go to gauge the crypto market’s health. Bitcoin leads the market to either higher or lower prices more frequently than not. As Bitcoin fluctuates, so too does the market. Therefore, if your Bitcoin position is losing money, there is a reasonable probability that everyone else’s is, too. Another good thing for crypto investors who don’t like taking risks is that Bitcoin’s volatility has decreased significantly in the last few months. This indicates that the risk associated with investing in bitcoin may be falling.

Also, read 7 Ways You Can Make A Little Extra In The Crypto World

2. Ethereum

Ethereum is the second most valuable cryptocurrency on the market and has the world’s largest developer network. Ethereum, like Bitcoin, has a history of surviving previous market crashes. Ethereum was introduced in 2015, as opposed to other cryptocurrencies that may only be one or two years old. And unlike cryptocurrencies that can only be used for one thing, Ethereum is great at everything: intelligent contracts, non-fungible tokens (NFTs), decentralized finance (DeFi), Web3, and blockchain games. This ecosystem provides diversity and mitigates some risks associated with investing in Ethereum.

Ethereum should also be in the portfolios of investors who don’t like taking risks since this year it went through The Merge, one of the most complex and most complicated technical upgrades in history. Some said this upgrade was as hard as replacing all four engines on a plane while it was in the air and out of gas. Now that Ethereum has switched to a blockchain-based on proof-of-stake, it is much more secure, reliable, and efficient. This also reduces the investment risk associated with Ethereum.

3. Cardano

At last, there is Cardano. Cardano’s price hasn’t changed much over the years, unlike other cryptocurrencies, whose prices have gone up and down a lot. Cardano has never traded at a price higher than its current one of $3.10 per coin. Cardano has been trading since 2017, so this doesn’t seem easy to accept. In many aspects, Cardano satisfies the criteria of a low-volatility asset: Instead of going to extreme highs and lows, Cardano tends to stay in a narrow trading range for a long time. It might be an excellent long-term investment, but people who want to hit a home run immediately might be disappointed.

Remember this guy? Mark Cuban, co-host of shark tank, & #Cardano basher, invested in Sushi (2020 rug pull), Olympus (completely failed), Kilma DAO (Down 97%), Titan (rug pull) & VGX (Bankrupt). In case you’re wondering, he loves SOL and ETH. Mark, #Cardano appreciates the hate. pic.twitter.com/J6TJrP0cPy

— Marcosantiago Chiappetta (@marcosantiagoNY) November 13, 2022

Cardano is a reasonably safe investment, partly because it builds blockchains in a planned, systematic, and highly intellectual way. It also ensures that every update, change, tweak, and new feature of Cardano works as it should. Occasionally, this frustrates investors since Cardano seems to be progressing so slowly. Cardano is more like a reliable four-door car than a Lamborghini. You could count on it to take your kids to school every day.

How to mitigate risk via diversity

There are other methods for reducing the overall volatility of your cryptocurrency portfolio. You could, for example, pay a lot more attention to how well your cryptocurrency portfolio is spread out. If you compare your cryptocurrency portfolio to a baseball lineup, you don’t want to have only home-run hitters who rarely put the ball in play. Instead, it would be better to have a lineup of batters who can hit singles and doubles consistently.

The good news is that just because you’re employing a risk-averse strategy doesn’t mean you have to forego any of crypto’s incredible upside potential. Consider Bitcoin, which made my list of the most risk-averse cryptocurrencies and has been one of the best-performing assets over the past decade. Investing in cryptocurrencies is always risky, but these three can help reduce some risks without reducing potential returns.