Why You Shouldn’t Put Everything in One Coin: Setting up a Crypto Portfolio

Cryptocurrency can bring high rewards but carries significant risks. Relying on a single coin increases exposure to market volatility. Diversification helps reduce risk and improve long-term stability.

Cryptocurrency prices can change rapidly. A single coin can experience sudden price drops, leading to significant losses. Holding multiple assets spreads the risk. If one coin falls, others may rise, balancing out the portfolio.

Each cryptocurrency serves a unique role.

• Bitcoin acts as digital gold.
• Ethereum powers decentralized applications.
• Altcoins bring innovation and new use cases.

A mix of assets ensures exposure to different opportunities while minimizing the impact of any single coin’s decline.

Government policies can influence cryptocurrency prices. Some countries impose bans, while others introduce supportive regulations. A diverse portfolio protects against sudden legal changes affecting a single asset.