CRYPTO DIVERSIFICATION DOES NOT EXIST! ⚠️
It’s common to see people falling into the trap of ‘diversifying’ their cryptocurrency portfolio with low cap, mid cap, high cap, memecoins, shitcoins and utility tokens under the belief they’re diversifying their portfolio similar to that of a stock market portfolio.
This is of course an incredibly dangerous mindset to possess as the market does not currently operate in a manner where particular sectors move independently from each other. Unlike stocks, where you can diversify between individual sectors such as tech, emerging markets, indexes, retail etc... crypto is essentially one gigantic market pumping and dumping in synchronisation with each other.
No matter how many coins you hold, no matter how many different sectors they may be in... you’re still investing SOLELY into 1 sector and if anything amplifying your exposure and risk within a single sector.
Until we see regulations dictate which sectors will thrive, every cryptocurrency investment remains at a high risk until then, no matter how much you may believe in a project!
It’s common to see people falling into the trap of ‘diversifying’ their cryptocurrency portfolio with low cap, mid cap, high cap, memecoins, shitcoins and utility tokens under the belief they’re diversifying their portfolio similar to that of a stock market portfolio.
This is of course an incredibly dangerous mindset to possess as the market does not currently operate in a manner where particular sectors move independently from each other. Unlike stocks, where you can diversify between individual sectors such as tech, emerging markets, indexes, retail etc... crypto is essentially one gigantic market pumping and dumping in synchronisation with each other.
No matter how many coins you hold, no matter how many different sectors they may be in... you’re still investing SOLELY into 1 sector and if anything amplifying your exposure and risk within a single sector.
Until we see regulations dictate which sectors will thrive, every cryptocurrency investment remains at a high risk until then, no matter how much you may believe in a project!