I remember at the past my friend said if we want to have big profit, we should buy several coins.
If one coins loss, we can earn profit from other coins.
And when the crash happens like last week all coins go to in red, so how hah this fake diversification helped?
Just looking at the definition:
Rather than concentrate money in a single company, industry, sector or asset class, investors diversify their investments across a range of different companies, industries and asset classes.
Again, as I said before, in order to truly diversify you need to buy coins and some other assets that would not be affected by a govemermnt banning bitcoin or by a rejected ETF, or by CZ being run over by a car, so buy Bitcoin diversify by buying Apple shares, buy Solana diversify by buying Walmart shares, buy Doge and Japanese bonds, and so on!
Buying more cryptos is just buying different types of eggs and stuffing them in the same basket!
agree with this, Diversification into cryptocurrencies is an important strategy.
We must spread our investment in several coins, various platforms, project types.
I personally invest in the coins which have smart contract, invest in gaming coins, web3 etc.
If one of my coins will soar, I will gain big profit.
What happens if all the sector enters a bear season? You're at a loss with all the coins!