Still don't understand how to diversify your portfolio? Don't wait until you face liquidation to regret it!
Diversification is the basic operation for survival in the cryptocurrency world, yet many people treat it as background noise. It's only when they gamble everything on a single coin and lose everything that they start complaining about bad luck. But is it really bad luck, or is it just their own greed?
I still remember when I first entered the crypto world, blindly investing all my funds into a hot coin, confidently thinking it would soar to the moon. But within three days, I was wiped out by the market manipulators, and my assets were cut in half – it was truly painful! The reality is cruel; without diversification, you are just being harvested like chives.
So, what is the significance of diversification? It's simple – survival! Never put all your eggs in one basket!
The first step is to control risk. Every coin carries risk; even the best projects can experience black swan events. Diversifying your investments can minimize the impact of a plummeting coin on your portfolio.
The second step is to seize opportunities. If you diversify, the chances of different coins rising in rotation increase, so you won’t lose everything just because one coin fails.
The third step is to adjust your mindset. Diversification can reduce your volatility, preventing wild price swings that your heart can't handle.
How exactly should you diversify? **It is recommended to divide your funds into 4 to 5 portions: one part in stable coins, like BTC and ETH, and another part in trying out popular potential coins, but always remember that high-risk positions should not exceed 30%.** This way, even if one coin goes to zero, you still have other cards to play.
The crypto world is a brutal battlefield; those who don’t diversify basically won’t survive the bull-bear transitions! Don’t wait until you suffer major losses to regret it. Learn to diversify a step earlier, and you’ll reap steady happiness a step later. Why not take action now?
