Does holding 10 cryptocurrencies mean your risk is diversified?
Not necessarily.
Different tokens may be affected by the same market sentiment, liquidity, and fund flows. Even tokens in different sectors may come under pressure at the same time during a market downturn.
True diversification isn’t about holding more coins—it’s about understanding the sources of risk and how your overall holdings are correlated.
Do you focus more on the number of coins you hold or on risk correlations?
Not necessarily.
Different tokens may be affected by the same market sentiment, liquidity, and fund flows. Even tokens in different sectors may come under pressure at the same time during a market downturn.
True diversification isn’t about holding more coins—it’s about understanding the sources of risk and how your overall holdings are correlated.
Do you focus more on the number of coins you hold or on risk correlations?