3 Types of Cryptocurrencies That Can Diversify a Tech-Heavy Portfolio
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By Dominic Basulto – Jan 10, 2026 at 3:19PM ESTKey PointsBitcoin is largely uncorrelated with any major asset class, and has often been referred to as "digital gold."Gold stablecoins are pegged 1:1 to the price of gold, and should move higher if tech stocks falter.Small niche altcoins, such as privacy coins, could soar in value, regardless of what's happening with tech.CEO says this is worth 18 Nvidias. Will this make the world's first trillionaire? ›CRYPTO: BTCBitcoinMarket Cap$1.8TToday's Changeangle-down(0.17%) $150.55Current Price$90408.00Price as of January 10, 2026 at 4:12 PM ETWhile many cryptocurrencies are highly correlated with tech, these cryptocurrencies are not.If you're looking to diversify a tech-heavy portfolio with cryptocurrency, you need to be careful. Historically, cryptocurrency -- as a classic "risk-on" asset -- tends to be positively correlated with the tech market. In other words, as tech goes, so goes crypto (most of the time). But there are a number of notable exceptions. A handful of top cryptocurrencies could provide remarkable diversification benefits, as long as you're willing to keep a close eye on correlations between different asset classes. 1. Bitcoin The favorite choice of hedge fund managers and large institutional investors is Bitcoin (BTC +0.17%). While there are brief periods of time when Bitcoin trades like a tech stock, more often, it does not. In fact, most of the time, Bitcoin is completely uncorrelated with any major asset class. For that reason, Bitcoin has earned the moniker "digital gold." Image source: Getty Images. According to a March 2024 study from WisdomTree (WT +2.28%), Bitcoin is neither positively nor negatively correlated with the stock market. It tends to march to the beat of its own drummer, which is what makes it so valuable. It can zig when other assets zag. In the period from 2012 to 2023, Bitcoin's correlation with the stock market primarily stayed in a range between 0.2 and -0.1. ExpandCRYPTO: BTCBitcoinToday's Change(0.17%) $150.55Current Price$90408.00Key Data PointsMarket Cap$1.8TDay's Range$90224.00 - $90706.0052wk Range$74604.47 - $126079.89Volume15B 2. Gold stablecoins Gold is arguably still the best hedge against the stock market declining in value, and for that reason, gold stablecoins deserve a closer look. The two biggest gold stablecoins are Pax Gold (PAXG +0.06%) and Tether Gold (XAUT +0.14%), both of which now have market caps in excess of $1.6 billion.Advertisement These stablecoins, rather than being pegged to the U.S. dollar, are instead pegged to the price of gold. Thus, as gold moves higher, so will these stablecoins. In 2025, gold prices rose nearly 70%, and gold stablecoins followed suit, becoming some of the top-performing cryptocurrencies in the process. ExpandCRYPTO: PAXGPAX GoldToday's Change(0.06%) $2.58Current Price$4507.58Key Data PointsMarket Cap$1.7BDay's Range$4500.83 - $4513.8752wk Range$2632.08 - $4573.52Volume57M 3. Small niche altcoins While no cryptocurrencies are fully negatively correlated with tech stocks (meaning they move up when tech stocks move down), there are some smaller, niche altcoins that clearly follow their own path. Their price behavior is much more based on tech upgrades, new product features, or technical factors, rather than what's happening in the broader market. Last year, the place to be was privacy coins. Two privacy coins -- Zcash (ZEC 9.58%) and Monero (XMR +3.66%) -- soared in value, driven by concerns over online privacy and blockchain surveillance. Quite simply, if you don't want someone snooping on your online crypto transactions, then you can move your money into privacy coins. Anytime you make an online transaction with these coins, you can remain completely anonymous. Bitcoin or gold? Of the three options listed above, the clear top pick is Bitcoin. Maybe the "Bitcoin is digital gold" investment thesis needs a closer review these days, but it's impossible to ignore Bitcoin's historical lack of correlation with any major asset class. Yes, gold stablecoins have some appeal, but why not just buy a gold ETF, rather than going through the elaborate step of investing in a cryptocurrency designed to act like gold? There's a good reason why billionaire hedge fund managers are among the biggest buyers of Bitcoin. It's easily the best crypto to hedge your exposure to the broader tech market.Read NextJan 10, 2026 •By Alex Carchidi3 Bad Investing Mistakes I Won't Repeat in 2026 and BeyondJan 9, 2026 •By Alex CarchidiWhere Will Bitcoin Be in 5 Years?Jan 9, 2026 •By Alex CarchidiBitcoin Has Dropped 28% Since Its Peak in October.
Will It Continue to Fall in 2026?Jan 9, 2026 •By Alex Carchidi3 Predictions for Bitcoin in 2026Jan 8, 2026 •By Alex CarchidiPrediction: Bitcoin Will Hit $150,000 in 2026Jan 8, 2026 •By Adam SpataccoShould You Buy Bitcoin While It's Under $100,000?About the AuthorDominic Basulto is a contributing Motley Fool crypto analyst covering cryptocurrencies, digital assets, and crypto-related companies. Prior to The Motley Fool, Dominic was a technology and innovation journalist at The Washington Post and Fortune. He holds a bachelor’s degree in politics from Princeton University and an MBA in finance from Yale School of Management.TMFCryptoDomX@dominicbasultoStocks MentionedBitcoinCRYPTO: BTC$90408.00 (+0.00%) $+150.55WisdomTreeNYSE: WT$13.45 (+0.02%) $+0.30MoneroCRYPTO: XMR$470.22 (+0.04%) $+16.60ZcashCRYPTO: ZEC$375.39 (0.10%) $39.77PAX GoldCRYPTO: PAXG$4507.58 (+0.00%) $+2.58Tether GoldCRYPTO: XAUT$4496.69 (+0.00%) $+6.16*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement