Diversification in Cryptocurrencies – Cryptocurrency investing for dummies book reading – Chapter 9
👉 Free Copy Of Cryptocurrency Investing For Dummies: https://bit.ly/30vePzb
In this episode, I’ll be reading parts of Chapter 10. Diversification in Cryptocurrencies.
Some of the talking points include:
* Understanding how diversification helps your portfolio
* Exploring long-term diversification methods with cryptos
* Seeing short-term diversification strategies for cryptocurrencies
When you’re building your personal stock portfolio, diversification often means having more than one or two stocks. The most conventional diversification method in a personal stock portfolio is to have around 15 to 20 stocks that are spread across different industries.
When you diversify among industries, assets, or investment instruments that aren’t correlated, you’re less likely to see major drops in your portfolio when one of the categories is doing poorly. Diversification doesn’t guarantee you have no risk of losses, though. It just reduces that risk if done correctly.
When it comes to adding cryptocurrencies to your portfolio, keep the following two types of long-term diversification in mind:
* Diversifying with non-cryptocurrencies
* Diversifying among cryptocurrencies
In this new cryptocurrency investing for beginners series, I read parts of my book, Cryptocurrency Investing For Dummies, to simulate a book-signing experience for those of you who haven’t got a chance to meet me in person.
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Disclaimer: I am NOT a financial advisor, and nothing I say is meant to be a recommendation to buy or sell any financial instrument. I will NEVER ask you to send me money to trade for you. Please report any suspicious emails or fake social media profiles claiming to be me. Don’t invest money you can’t afford to lose. There are no guarantees or certainties in trading or investing.
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