investment is always risky
Post
Henri-Crypto
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Holding 35 different altcoins doesn’t protect you. It just guarantees your losses
Many investors start with a $1,000 or $2,000 portfolio and buy 30 to 40 different tokens, thinking:
“I diversify to limit my risk.”
In the world of crypto, this is pure optical illusion.
Here’s what actually happens when you spread yourself too thin:
The correlation is almost total:
Unlike traditional finance, where gold, bonds, and stocks react differently, in crypto, when Bitcoin sneezes, 95% of altcoins catch pneumonia. Your risk isn’t diluted; it’s multiplied.
“I diversify to limit my risk.”
In the world of crypto, this is pure optical illusion.
Here’s what actually happens when you spread yourself too thin:
The correlation is almost total:
Unlike traditional finance, where gold, bonds, and stocks react differently, in crypto, when Bitcoin sneezes, 95% of altcoins catch pneumonia. Your risk isn’t diluted; it’s multiplied.
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