"The Importance of Diversification in Crypto Portfolios"

📊 Diversification can mitigate risks and enhance returns:

Why Diversify? Reduces exposure to any single asset's volatility.

How to Diversify: Allocate investments across different sectors like DeFi, NFTs, and Layer 1 blockchains.

Example Allocation:

40% in established cryptocurrencies (e.g., BTC, ETH)

30% in emerging altcoins

20% in DeFi projects

10% in NFTs and other assets

💡 Tip: Regularly rebalance your portfolio to maintain desired allocation percentages.