History has shown that one of the simplest ways for investors to consistently give their portfolio the best the market has to offer is by investing in the S&P 500 ( ^GSPC 0.80% ) . Composed of 500 top U.
S. companies, the S&P 500 has returned an average of 10% per year over the long term. ^SPX data by YCharts A 10% return on average -- which includes up years and down years -- is nothing to sneeze at, but for a growth investor with a long time horizon (and a greater appetite for risk), there are better opportunities on the market.
Oftentimes, this means investing in riskier stocks, including tech companies on the cutting edge of innovation, since they have notable long-term potential. However, there is another asset that is proving itself to be a valuable addition to portfolios: Bitcoin ( BTC 2.32% ) .
The Bitcoin effect Over the last five years, Bitcoin is up more than 675%. Zooming out even further, the cryptocurrency is up much more. The reason behind Bitcoin's massive appreciation is nuanced, but what is important to note is that it still holds plenty of potential to keep growing.
While blockchains and cryptocurrencies hold significant potential to transform financial markets, the majority of the crypto asset class is fraught with speculation. For several reasons, Bitcoin is the safest investment one can make when it comes to crypto. The crypto market is worth $2.
57 trillion and Bitcoin makes up more than 50% of this value. What this means is that as Bitcoin goes, so does .
