Quote from: cryptopio on March 31, 2022, 11:46:03 PM

Over diversification

Diversification is crucial to building a resilient cryptocurrency portfolio, especially with the high volatility levels in the space. However, with the sheer number of options out there and the predominant thirst for outsized gains, cryptocurrency investors often end up over-diversifying their portfolios, which can have immense consequences.

Over-diversification can lead to an investor holding a large number of heavily underperforming assets, leading to significant losses. It’s vital to only diversify into cryptocurrencies where the fundamental value is clear and to have a strong understanding of the different types of assets and how they will likely perform in various market conditions.

This is only partly true and misses some vital information. Without going in (back then) small projects I never would have been able to acquire several Bitcoin. In the last great crash ETH went from something like $1500 to $80. But whats even the upside? If you bought it at $1500 you still only are up 200% or so, while with smaller projects even if you put only a small percentage of a possible ETH investment into it, you can gain a lot more but you have diversified your risk. And yes I had some projects when ETH crashed (the whole market) that recovered enough to cover all my losses and much more (plus keeping a Bitcoin stash of course).

So something small and promising like KoinOS or maybe tt can always be a nice hedge to Bitcoin growth, especially since ETH is so risky and expensive now.

luckyjoe

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