#DiversifyYourAssets

Diversify across cryptocurrencies

A straightforward way to diversify your crypto portfolio is to add new tokens to your existing holdings. Deciding which new cryptocurrencies to add may present a challenge, but you can make that process easier by evaluating your current investments.

Where is your token portfolio currently lacking? Here are some ways to diversify if you have a burning desire to buy more cryptocurrency:

Add large-cap or small-cap cryptocurrencies. If you own mostly Bitcoin, consider investing in emerging cryptocurrencies. If you own only small-caps, perhaps add Bitcoin or another large-cap token to your portfolio.

Buy different types of tokens. Your portfolio can expand to include stablecoins, utility tokens, governance tokens, and other coin types.

Diversify across sectors. A diversified crypto portfolio may include tokens that span industry sectors such as gaming, file storage, environmental protection, and finance.

Expand across geographies. You can grow your crypto portfolio to include tokens that are primarily used within specific geographic regions.

Invest in different blockchain protocols. A diversified crypto portfolio may include coins that use different consensus mechanisms such as proof-of-work and proof-of-stake.

Support DeFi projects. Investors interested in the democratization of money may choose to own digital tokens associated with one or more decentralized finance projects.

Invest in blockchain scaling solutions. Those aware of the challenges that can arise from crypto network congestion may be inspired to buy the digital tokens of a blockchain scaling solution.

Caveat: As with all major market crashes or bear markets, when the tide turns against the entire market, just about every asset class is vulnerable to a plunge. But if your portfolio is well diversified, it may fall to a lesser degree or recover faster than portfolios that are concentrated on assets that really fell out of favor in the markets.