#风险回报比 The dispersion and concentration of assets and risks should be viewed dialectically. Asset dispersion can reduce risk. But too much dispersion is not good; human attention is limited. If assets are spread across seven or eight hundred different assets, it's unmanageable, just like a juggler throwing balls—one person can only juggle six or seven balls at most; any more, and it becomes unmanageable. I made this mistake before by diversifying my investments into dozens of cryptocurrencies, having assets in Binance, Ouyi, MEXC, Gate, etc. It was called diversified investment to reduce risk, but in reality, when prices went up, I didn't take profits, and when prices fell, I couldn't stop the losses in time. I couldn't manage the assets and ended up being controlled by them, becoming a slave to my assets.

However, having assets too concentrated is also not good; that increases risk. If you invest all your wealth into the cryptocurrency market, you might be considering jumping off a building in the next two years. But I have a house, savings, and gold; a small portion is speculated in the cryptocurrency market, so if I lose that, it won't bankrupt me. This is asset dispersion: a part in fixed assets, a part in cash, and another part for speculation.

Investing all funds into the cryptocurrency market and then buying dozens of altcoins isn't called asset dispersion; that's called concentrated risk and dispersed focus.