Spreading your investment across multiple cryptocurrencies (diversification) is an excellent strategy to reduce risk. If you are interested in avoiding big losses in the cryptocurrency market, here are some tips:

1. Choose currencies carefully

Focus on currencies with strong projects and reliable development teams.

Look for currencies with real use cases (such as VeChain, which is used in supply chains).

Choose currencies that have extensive partnerships and real adoption in the market.

2. Diversify wisely

Spread your funds between major currencies such as Bitcoin and Ethereum and other currencies that interest you such as Cardano (ADA), Solana (SOL), and Polkadot (DOT).

Don’t forget currencies with different uses, such as Chainlink (LINK) for external sources, or Filecoin (FIL) for decentralized storage.

3. Set investment ratios

Allocate a larger percentage of your investment to relatively stable currencies such as Ethereum and Bitcoin.

Invest less in small projects that are high risk but have great growth potential.

4. Monitor and update

Follow news and developments related to the currencies you have invested in.

Be prepared to change your portfolio if new opportunities arise or if a project becomes weak.

5. Do not over-invest

Do not invest more than you can afford to lose.

Keep a portion of your cash portfolio for future opportunities or to reduce risk.

6. Use trusted platforms.