Cryptocurrency as an alternative investment : Everything you need to know Experienced investors know that diversification across a portfolio can enhance long-term returns while reducing risk. Today, lower interest rates and market volatility due to COVID-19 may be encouraging more investors to diversify assets and safeguard wealth beyond the usual asset classes comprising equities, fixed income, property, and cash, and into alternative investments. One alternative asset class that has shown exceptionally high potential returns relative to risk tolerance is cryptocurrencies.