Never position all your money on a single token!

Now I will give you 2 different scenarios, let's analyze the results of these scenarios together. (We will assume that you have $5000 in total.)

Case 1: You opened a Long position on $LDO with all $5000 in your hand. 1 day later, the news broke that the SEC was investigating $LDO and $LDO fell by 30%! Meanwhile, $BTC rose by 5% and other altcoins rose by 8%! Total loss: $1500.

Case 2: You split your $5000 into 5 parts and bought $ENS, $UNI, $LDO, $AAVE, and $PENDLE ($1000 each). 1 day later, news spread that the SEC was filing a lawsuit against $LDO and $LDO dropped by exactly 30%! Meanwhile, $BTC increased by 5% and other altcoins increased by 8%! Total change: -300$ + 4 x $80 = +20$.

In Case 1, your total loss was exactly $1500, while in Case 2, you didn't make a loss, you made money!

This is why spreading your risk is so important.

It is always risky and dangerous to invest in a single token, or to open large positions in a single token.

Manipulative news about that token can ruin your portfolio in an instant.

So, to spread your risk, always invest your total balance in at least 5 different tokens.

Since all the tokens in the example I gave above are from the Ethereum ecosystem, their long-term correlations will be similar, so dividing your money in this way will reduce your risk and will not reduce your earnings.