With more coin varieties, do you dare to say your risk is low?
For retail investors, the favorite “don’t put all your eggs in one basket” may be an illusion in the cryptocurrency market.
Baskets that differ aren’t wrong.
But when the storm comes, all the eggs on the ship crack at the same time.
In crypto, the ups and downs of assets often move in sync.
Hedges that seem like they can offset each other in normal times all fail when the market overall reverses.
Because everyone needs cash.
When panic arrives, all coins are dumped indiscriminately.
What you think is diversified holdings is really just diversification of the time you bought.
In the end, it becomes “a diversified decline.”
When it starts dropping, if you have ten coins, it’s just the same drop repeated ten times.
As for “the east doesn’t shine, the west will,” it simply doesn’t exist in the face of systemic risk.
The lesson from this market cycle is simple: true risk avoidance isn’t about how many kinds of coins you hold, but knowing that sometimes, having cash in hand is the only hedge.

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