Diversification means allocating funds to various investment sectors such as crypto, stocks, bonds, mutual funds, gold, property, etc. with the aim of increasing potential profits and minimizing risk.
There are two types of diversification that we know, namely one type and various types. One type refers to investments that are only allocated to one type of investment instrument, such as crypto ADA, BTC, Eth, Ltc, Solana, etc. as well as stocks such as AMZN, AAPL, GOOGL, MSFT, TSLA, etc. While various types of diversification refer to various investment sectors such as stocks, crypto, land, gold, etc. Various types will be more suitable for novice and conservative investors.
The number of assets to be selected as investment diversification will also depend on the capital/funds to be allocated, such as if you only have $1000, you should only choose one or two investment instrument assets, if there is too much spread, diversification will be less useful.
There are two types of diversification that we know, namely one type and various types. One type refers to investments that are only allocated to one type of investment instrument, such as crypto ADA, BTC, Eth, Ltc, Solana, etc. as well as stocks such as AMZN, AAPL, GOOGL, MSFT, TSLA, etc. While various types of diversification refer to various investment sectors such as stocks, crypto, land, gold, etc. Various types will be more suitable for novice and conservative investors.
The number of assets to be selected as investment diversification will also depend on the capital/funds to be allocated, such as if you only have $1000, you should only choose one or two investment instrument assets, if there is too much spread, diversification will be less useful.
Welcome to Admin Junkies