The Power Of Diversification

Many things can be done to minimize losses to our assets. One of them is to do "diversification. Of course, that also applies to crypto assets.

The more volatile crypto market makes us have to choose the right asset to make a profit, or at least not trigger a loss.

We all must be familiar with this "diversification" theory. "Diversification" in short means allocating our assets to different types.

The general term for it is "Don't Put All Eggs In One Basket".

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Increase Profit Opportunities by Spreading Assets Over Different Types

I know this is a very general theory. By owning various types of assets, that means we also increase profit opportunities. Especially in the world of the crypto market, we don't know for sure which type of asset experienced a big increase first to bring us to the maximum profit.

Spreading our assets across different types is also a way to save us from losses. If one other type of asset experiences a severe decrease in price, we still can take opportunities from another type.

It's like having a lot of eggs in stock and not keeping them in one basket. Place the eggs in different places. So, if one basket or one place falls and breaks all the eggs in that place, then we still have the eggs in the basket or other places.

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There is No Only Favorite Asset

Forget about owning favorite coins. In the past, this was what kept me from getting the chance for maximum profit because I only kept assets in one of my kind.

It certainly doesn't matter if we have one of our favorite types of assets. But that does not mean closing the opportunity for other assets to become our favorites. Other assets that are our favorites will help us to distribute all of our assets evenly and not depend on one type only.

At the very least, it can save you from the worst, especially in the volatile crypto market!

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Sources of Pictures: 1, 2.

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Best Regards,
Anggrek Lestari

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