Diversification is a cornerstone of risk management in any investment strategy, and cryptocurrency is no exception. While Bitcoin and Ethereum dominate the market, allocating across different assets can help mitigate volatility.
Consider spreading your portfolio across large-cap cryptocurrencies, mid-cap projects with strong fundamentals, and a small allocation to emerging tokens. Each category carries different risk and return profiles.
- Allocate across different market caps
- Consider different use cases (DeFi, NFTs, Layer 2)
- Rebalance periodically
- Never invest more than you can afford to lose