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Crypto Over-Diversification (When Diversification Becomes A Problem.) by teesart

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· @teesart · (edited)
$14.86
Crypto Over-Diversification (When Diversification Becomes A Problem.)
Diversification in the crypto world is quite important and I'm a big supporter of this act. As a matter of fact, almost every person involved in cryptocurrencies diversifies at some point and this is because diversifying our crypto portfolio and activities in the cryptoverse has proven to be ways of minimising losses, saving time an resources and benefiting from great projects.  I've been involved with several projects which have been successfully and some which didn't do so well so I really don't know what would have happened if I had been with only one project.

![img_0.7255528416160062.jpg](https://images.ecency.com/DQmcEQsK2CcrgwfmhnKcSfy8XexVN3zp7A37YAkCna1N6Dk/img_0.7255528416160062.jpg)
[Text here](https://www.brandcrunch.com.ng/2021/01/15/8-ways-media-companies-can-diversify-revenue/amp/)

However, diversification could become a problem if done excessively. It's normal to want to allocate our time, money and resources to several projects that we're interested in but then, this could lead to some serious problems especially in the crypto space. 

I'll start by talking about our crypto portfolio. The crypto world is full of uncertainties and that's why diversifying is a great idea so we don't miss out on great opportunities and so we don't fall into traps. Over diversifying our portfolio could result in some issues relating to managing and keeping up with every crypto we've invested in. Some would do really well and some may lose value until they go into oblivion which is quite popular with many cryptocurrencies. 

The best thing to do is to take a look at all our options, carefully scrutinise them and pick a few solid projects with a good road map and with long term plans. Projects that would be there for us many years to come. Over diversifying our crypto portfolio may cause us to have loads of valueless cryptocurrencies especially since most cryptocurrencies out there are currently products of rug pulls.

As for activities,  it's best to get involved with activities we are actually interested in or that are related to our lifestyle. Activities we could do easily and wouldn't feel much like work. For instance, I'm an artist and blockchain enthusiast so I'm involved in creating art as nfts and blogging about my art and crypto on platform like Hive. It's sorta make things easy for us and we're able to manage our activities and not get overwhelmed with affairs that are unrelated to our lives.

I understand many people can multitask and over diversify so well and make crazy profits doing so but it pays off to focus our attention, time and resources to the things that really matter to us and our future particularly since the idea of diversifying is to focus on the important stuffs, reduce the risks involved with investing and also so we do not to miss out on great opportunities.
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@tommycordero ·
>diversification could become a problem if done excessively

Absolutely, yes. More than that, there comes a point in which you can't possibly keep up with all your investments since it's so easy to enter into them. That's all good if you're only thinking about profit. But you're also going to want to have some explanation as to what you think your money is supporting if you get a government letter asking. I don't know, maybe I'm thinking too much into it. We'll see what happens...
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