Hello everyone! 👋
Whenever I give advice to people who have doubts about how to invest, I always see that some respond: "The best is to buy BTC and ETH, with that you have more than enough".
But you must take into account that in such a volatile market as the crypto market, diversification should not be optional, but a key to survive.
Today I explain why diversifying in your portfolio is a way to protect your capital, as it opens the door to more opportunities and helps you manage your risks more optimally.
1. Volatility does not forgive 👆👇
In the crypto world, sharp movements in the market are the most normal.
If you have all your investment in a single asset and that asset falls sharply, it will cause a crash in your portfolio.
If you diversify, it will allow you to spread the risk among several cryptocurrencies, thus cushioning the falls.
2. Take advantage of opportunities from various sectors 👀
Blockchain is not just Bitcoin ($BTC ).
There are sectors like:
Infrastructure (Ethereum, Solana...)
Artificial Intelligence (Fetch.ai, Render...)
DeFi (Aave, Curve...)
Global payments ($XRP , XLM...)
Having variety in different sectors offers you the possibility to benefit in different growth cycles.
3. Not all cycles are the same 🤔
Not all cryptos rise or fall at the same time.
While some suffer corrections, others may be in an upward trend. Thanks to this, diversifying offers you more margin.
4. Psychologically helps 💪
If an asset is falling, but you see that other assets in your portfolio are holding or rising (unless it’s a general market decline), it will be much easier for you to stay calm and follow your plan without selling out of panic.
5. Balance between risk and stability 💻
Diversifying allows you to balance between:
Solid long-term projects (Like BTC, ETH, BNB...)
Altcoins with potential (Like ADA, AVAX, POL...)
Risky bets with controlled stakes on new projects (Like NIL, BMT...)
This way you will be able to participate in the growth of new opportunities without your portfolio being excessively affected.
Advice: 🔥
Diversifying does not mean buying anything without sense.
Before deciding whether to invest in a project, you must inform yourself about it and conclude whether it fits your strategy or if it’s worth investing in another asset.
I hope this post helps resolve questions, as I've seen many inquiries of this kind.
Do you agree with my point of view on how to manage a portfolio?
Leave it in the comments. 😀
