How I "Upgrade" My Portfolio: The Power of Diversification 📊
You’ve heard the saying, "Don't put all your eggs in one basket." In crypto, this is more important than ever. "Upgrading" a portfolio isn't always about finding one "winner," but about building a strong, resilient foundation through diversification.
Instead of going all-in on a single coin, a diversified approach means spreading investments across different types of crypto assets. Here’s a simple way to think about it:
Blue Chips (The Foundation): Established projects like Bitcoin and Ethereum.
Layer 1s & Layer 2s (The Infrastructure): Blockchains and scaling solutions that power the ecosystem.
DeFi Tokens (The Financial Apps): Projects focused on decentralized lending, exchanges, etc.
Niche Areas (Higher Risk/Reward): This could include Gaming (GameFi), AI-related tokens, or even a small, speculative position in meme coins.
By diversifying, you reduce the risk of one project's poor performance wiping out your entire portfolio. It’s a strategic way to capture growth across the market while managing your risk.
How do you approach diversification in your own strategy?