Crypto diversification in a portfolio

Hello guys,
I welcome you all to my blog once again. It is a new week and I'm delighted to start the week with this contest hosted here in this community by our dear friend @khursheedanwar which talks about Crypto diversification in portfolio. Without further ado please let's go into the discussion of the day.

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Traders always go into diversification of assets because it is the major way to make money in the crypto space. Diversification has many importance ranging from helping traders to make profits and also helping them to cover losses incurred by another asset that is not doing well.

This means that when you diversify your assets, there are probabilities that you will have losses on some whereas you may have gain on some others. Having said that, let me explain what cryptocurrency asset diversification is all about in more clear terms before I talk about my portfolio and why I have chosen to invest in those assets.

Diversification in layman's terms is the act of splitting your money into different assets. This means you buy and hold different cryptocurrency assets instead of holding just one of the many assets. Knowing fully well that we have about 1000+ cryptocurrencies around the world today, it is important one look for those with good potential and invest in them because you can become very rich with the tickle of an eye.

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Let's take for instance you buy the Steem token and hold it when the price is around $0.15 and then the price moves to around $0.3 you will notice that your portfolio has increased with almost 4x of the initial capital you were having. If for instance, the total assets you are holding were worth $100,000 it means your new portfolio will be reading about $400,000.

These are the benefits of diversification because if you are still holding another asset that is not doing well, you will also notice that your profit made from the one that is doing well will cover the losses you have made on the one that is not doing well.

The losses will not be noticed or it may be negligible because you have covered it with other assets. Now having said that, let's look at my portfolio from the exchange wallet. I don't hold much of assets in my exchange because I prefer selling and then converting the money to my local currency in case I want to use the money at any point and time.

From the screenshot above you will notice that my portfolio is reading two assets i.e., Steem and CORE. These two assets are the major assets I'm holding at the moment because of their potential in them.

The CORE airdrop that took place a year ago made me go into holding the asset because the CORE blockchain also over time has proven to be a very good project. With the coming of the blockchain, we have seen many new projects which has also helped to keep the price of the asset at the top.

For the Steem token, I'm a very serious invest in Steem because I always do my best to grow my Steem power. Considering the beauty of the Steem blockchain, everyone who is into Cryptocurrency and understands Steemit will always want to invest in Steem as it is a profitable investment and no risk aside from the general risk of cryptocurrency dropping in price.

Based on these, I have decided to focus on these two portfolios at the moment because I'm sure that my asset is not at risk of a project that will fold at any moment and time. That is what I have today about cryptocurrency diversification.

I want to finally invite a few friends of mine in the persons of @josepha @solaymann and @waterjoe to also join the contest.