What is the impact on portfolio diversification when choosing 2 different cryptocurrencies over 3 coins of the same type?

1 answers

• Riise CraigFeb 17, 2021 · 4 years ago
  At BYDFi, we believe that diversifying your portfolio with 2 different cryptocurrencies can provide a balanced approach to risk management. By carefully selecting cryptocurrencies with different characteristics and market dynamics, you can potentially reduce the overall risk of your portfolio while still benefiting from the growth potential of the crypto market. However, it's important to note that diversification alone is not a guarantee of success. It's crucial to stay informed about the market, conduct thorough research, and regularly assess the performance of your chosen cryptocurrencies to ensure they align with your investment goals and risk tolerance.
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