Diversification of crypto investments.

For Beginners: Why Diversification Matters: Diversification is a risk management technique that mixes a wide variety of investments within a portfolio.

Applied to crypto, this can mean several things:

-You should not all-in on one crypto asset, no matter how well you think it’ll do.

• Your portfolio should usually contain a mix of coins of different market cap sizes.
• Your portfolio should not be based on only one ‘type’ of token e.g. holding only $MCO, $PAY, and $TKN.
• Your portfolio should not be based entirely around one risky strategy e.g. buying low market cap Cryptopia coins and waiting for your favourite crypto Twitter user to shill your bags is not advised.

The benefit of diversifying your portfolio means that even if one of your strategies/coins/positions whatever it may be fails, you’re adequately protected from that specific threat by your other holdings. Other rules like that you should never go all in, should be clear.