#DiversifyYourAssets Diversity of asset, more commonly known as asset diversification, refers to the practice of spreading your investments across different types of assets to reduce risk.

The idea is: “Don’t put all your eggs in one basket.”

Here’s how it works:

Instead of investing only in one type of asset (like just Bitcoin, or only stocks), you invest in a mix, such as:

Stocks

Bonds

Cryptocurrency

Real estate

Commodities (like gold or oil)

Cash or cash equivalents

Why it matters:

If one asset goes down, others might go up or stay stable.

It helps protect your overall portfolio from big losses.

It smooths out returns over time.

Example:

If you had all your money in tech stocks during a market crash, you could lose a lot. But if you also had some in gold and bonds (which might rise during crashes), you'd be more balanced.

Want a real-world example or help building a diversified portfolio?