Core Holding

Definition ∞ A core holding in a cryptocurrency portfolio is a primary investment in well-established digital assets with strong fundamentals and significant industry support. These assets are chosen for their relative stability and consistent performance over an extended duration. They constitute the foundational element of an investment strategy, designed to withstand market volatility.
Context ∞ In the dynamic cryptocurrency market, core holdings typically include less risky assets like Bitcoin or Ethereum, providing a stable base for a long-term portfolio. Investors often complement these with more speculative, higher-growth assets, but the core offers resilience during market downturns. Strategic selection of core holdings is essential for managing overall portfolio risk and avoiding over-exposure to volatile projects.