Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio.
A risk management strategy that mixes a wide variety of investments within a portfolio.
Diversification is a risk management strategy that mixes a wide variety of different investments within a portfolio. The rationale behind this technique is that a portfolio with different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment within the portfolio. In crypto, this could mean holding a variety of different tokens and assets.
