Now, you have learned how to diversify your cryptocurrency portfolio. However, can you do to much diversification?
The simple answer is:
Yes, you can.
Why, or how?
Well, imagine yourself buying every cryptocurrency out there. Not only would it be an administration night mare for your crypto tax file but also it would
- Cost you a lot of spreads
- Cost you a lot of exchange fees
- Give you a lot of job to keep track of all cryptocurrencies
- Will not give you an advantage over the overall crypto market
You certainly will hit those extreme home runs but you will also catch every single cryptocurrency that completely fails.
In the end of the day, everything about investments are to beat the market.
Again, how do you beat the market?
->Knowledge, information and handle your fear and greed.
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