FREE BINANCE and Cryptocurrency COURSE
...*Lesson 6.1.2: Portfolio Diversification*
Diversification is about spreading your investments across different assets to reduce risk.
*Benefits of diversification:*
1. Risk reduction.
2. Greater profit potential.
3. Less dependence on a single asset.
*Examples of diversification:*
1. Investing in different cryptocurrencies (BTC, ETH, LTC).
2. Combining cryptocurrencies with stocks or bonds.
3. Investing in different sectors (technology, health, finance).
*Lesson 6.1.3: Advanced Stop-Loss Management*
An advanced stop-loss is a strategy to limit losses.
*Types of stop-loss:*
1. Fixed stop-loss: Order to sell at a specific price.
2. Trailing stop-loss: Adjust the stop-loss price based on market movement.
3. Percentage stop-loss: Sell when the price drops by a certain percentage.
Example: Set a 10% stop-loss to sell when the price drops by 10% from the purchase.
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