A few simple ways for crypto portfolio diversification
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1. Invest in different cryptocurrencies: Doing so can help you lower your total risk exposure because various cryptocurrencies have diverse use cases and underlying technology. To benefit from possible development prospects, keep an eye out for both established and emerging cryptocurrencies.
2. Allocate your investments among several sectors: This is another strategy for diversifying crypto portfolio. A few examples of these sectors are DeFi, NFTs, privacy coins, and others. By spreading your risk across different sectors, you may lessen your vulnerability to any specific sector.
3. Use dollar-cost averaging: This is a strategy that entails investing a certain amount of money at regular periods, regardless of the cryptocurrency's price. This can help you decrease the impact of market volatility on your portfolio and capitalize on possible market dips.
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