Ask Leo : can diversification help in reducing risk in cryptocurrency ?

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There is this saying that do not put all your eggs in a single basket. This old proverb relates more to finance and business alike.
An investor or business man should be prepared for any eventualities in business and investment. That is what draws the line between successful business men or investor and a mediocre. The ability to manage risk properly is an essential prequisite for success in business and investment. You must be able to face your fears heads on. If you fail to have a plan on how to reduce risk to the minimum, then you are planning to fail.
One of the tool that can be used as an investor in cryptocurrency is diversification of the Crypto currency investment. This means that investing in different Crypto such as ethereum, Bitcoin and lite coin. All this have their own distinct market which may vary in it's outcome. Therefore if there's loss on one end, you can easily cover up for the risk procured in the other from your Crypto portfolio.
Apart from managing risk, diversification of Crypto portfolio can also bring great investment reward. If the asset accumulated through the portfolio is eventually sold when the market is in a bull condition . There by yielding a lots of reward.
Therefore diversification of cryoto portfolio can help to reduce risk in cryptocurrency investment

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