Risk management isn’t just about individual position sizes—it’s also about whether risks overlap.
Holding five tokens in the same sector may still mean betting on the same sources of capital and narrative; correlations can also rise during a sharp market drop.
Before placing an order, group assets by their drivers and add up similar exposures. Then ask: if this group falls together, can the portfolio absorb the loss?
The number of coins isn’t the same as diversification. Keeping liquidity in reserve and reducing concentration matter more than splitting one large position across five tickers. #RiskManagement