What is crypto portfolio diversification?

What’s crypto portfolio diversification? Crypto portfolio diversification is the act of ploughing your money into different crypto projects to mitigate risk if one or more projects perform poorly. Executing a diversification strategy also helps you realize the best returns possible even when some of the portfolio items are on a bad run.

What is portfolio diversification?

Portfolio diversification means investing in a range of different assets to reduce the overall risk of your portfolio. In other words, portfolio diversification is a fancy way of saying do not put all your eggs in one basket.

Is crypto the Finance of the future?

While we believe crypto is the finance of the future, true diversification involves having your total portfolio split between a variety of asset classes (not just in crypto). Other asset classes like real-estate, stocks, bonds and gold can give your total portfolio the diversification it needs to weather whatever the world throws at it.

Is it safe to diversify a 100 USD cryptocurrency portfolio?

It probably makes little sense to diversify a 100 USD cryptocurrency portfolio. If you don’t have more than 500 USD available then it can be safe to stick to 2-3 coins you think have potential. Don’t dilute your capital by buying 40 USD stakes in many different coins in the hope of hitting gold on one or two of them.