Hello! The crypto market is incredibly volatile, and an "all-in" strategy can be very risky. To protect yourself and preserve capital, it's important to use diversification. Here are three simple rules to help you.
1. Allocate by asset classes
Don't keep all your funds in one asset. Divide your portfolio into several categories:
* Bitcoin ($BTC): The core of the portfolio, a less volatile asset.
* Ethereum ($ETH): A tech giant and leader in DeFi and NFT.
* Altcoins: Allocate a portion of the portfolio to promising L2 solutions like $ARB, or trending projects in the fields of GameFi, DePIN, or AI.
2. Invest in different projects
Even if you like a certain sector, like GameFi, don’t put everything into one token. Distribute funds among several projects, such as $GALA and $AXS. This way, if one project faces issues, it won't ruin your entire portfolio.
3. Use different strategies
Diversification is not just about different coins. It's also about different approaches.
* Long-term investments: A portion of the portfolio that you are willing to hold for years.
* Short-term trading: A small portion for active trading.
* Stablecoins: Keeping part of your capital in USDT or USDC will help preserve funds during high volatility.
Conclusion: Diversification is about risk management, not about missed opportunities.
How do you diversify your portfolio? Share your tips 👇