Jodie Gunzberg, CoinDesk Indices Managing Director, says volatility is one of the most challenging things facing investors looking at crypto, driven by geopolitical, regulatory, and other risks.

Video transcript

– Welcome back. Let’s get a check of the cryptocurrency markets now. Bitcoin prices are trading slightly higher this afternoon currently up just over 1% to just below $49,000. Now, for more we’re welcoming in Jodie Gunzberg, CoinDesk Indices Managing Director. Jodie, it’s great having you back on, and cryptocurrency prices have had yet another roller coaster year in 2021. For those investors who have perhaps watched this price action from the sidelines, how would you suggest they break into the space and manage the risks and volatility that have become inherent in the crypto space today?

JODIE GUNZBERG: Yeah, the volatility has been probably the most challenging things that investors have faced with investing in Bitcoin and crypto in general. So you know, a lot of these risks are market risk, the technology risk, the geopolitical risk, and they’re not unique to crypto. I think they’re just magnified since the asset class is emerging. And the major theme going into 2022 will be to manage that volatility.

So the three main ways we see that are one is first by diversifying into broad baskets. So beyond Bitcoin and into other large caps in the space. Second would be across sectors. And we’ve defined sectors, industry groups and industries, through a recent digital asset…