4. Diversify your portfolio: Don’t put all your eggs in one basket. Diversify your investments by investing in different types of cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin.
Buying different altcoins is not really diversifying because they all correlate strongly with Bitcoin (until they eventually fall to 0). Diversifying with assets other than cryptocurrencies is better.
Diversifying with assets other than cryptocurrencies is generally considered to be the best way to reduce risk and maximize returns. This can include assets such as stocks, bonds, commodities, real estate, and other forms of investments. By diversifying across different asset classes, it helps to reduce the risks associated with any one particular asset.
