One of the problems that beginners usually have is buying too many coins or overdiversified. This situation can prevent our portfolio from growing optimally. So, how do you avoid buying too many coins?
#1 Do In-depth Research.
Try to get used to it before buying something we know at least 7/10 of the information exposure that we can get from the internet. Try to find out what the project is doing, read the whitepaper, analyze the tokenomics, know the founder's character, and study the community in depth. Many of them fail and just buy because every time they see a new coin that has a good name they just buy it.
#2 Don't FOMO.
In the era of increasingly rampant social media like today, there is a lot of information conveyed by influencers and various social media personalities which often make us feel FOMO so that we end up making baseless purchases just because the coin is often discussed on social media. Try to overcome the tendency of FOMO and limit excessive information from influencers. All financial activities are your own responsibility.
#3 Do Portfolio Management.
Buying a lot of coins is okay if we only use a maximum of 1% of our entire portfolio. This can be done when we use the "casting net" strategy, where we spread many positions on new coins/memecoins which have high risk. The main thesis that is built is: we don't know which one will increase so we diversify everything.
#4 Always Track Progress and Separate Wallet From Main Portfolio.
One of the difficulties with having a large number of coins is that it is difficult to monitor the performance of the portfolio. When we try to do a net-casting strategy with the many coins we buy, make sure that you use a different wallet than the wallet in your main portfolio. This can be done to see the progress of the portfolio.
