What's the best way to diversify a crypto portfolio?
Diversification in crypto means spreading investments across different assets rather than putting all funds into one. Start by allocating a significant portion to established cryptocurrencies like Bitcoin and Ethereum, then consider smaller allocations to altcoins with strong fundamentals. You might diversify across categories: large-cap coins, mid-cap projects, DeFi tokens, and emerging cryptocurrencies. A common beginner approach is the 70-20-10 rule: 70% in established assets, 20% in mid-cap projects, and 10% in higher-risk opportunities. Avoid concentrating in one sector or exchange. Regularly rebalance your portfolio to maintain your desired allocation. Always invest only what you can afford to lose, as crypto remains highly volatile and unpredictable.
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