Don’t dilute your mental concentration / make yourself feel a lack of control over your portfolio by overdiversifying.

Holding 13+ cryptos at one time can result in quite the blurry ability to move healthily in the market

- Making u feel overwhelmed / miscalculated

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Of course, this is dependant on your mix of both long term investments and short term trades

But often, your own mental self will make you feel when you’re overdiversifying through the feeling of stress / lack of control.

The reason we find ourselves overdiversifying is often FOMO, we want our eggs in all baskets.

But in fact, if you have a smaller number of high conviction coins and they’re doing well, you don’t need the others to split ur money into to gain the exact same % performance!

In moments of market pullbacks, it can become very overwhelming when all of your many (10/15+) crypto holdings are all dropping and you end up in a state of major misalignment and confusion of what to exactly do next, with efficient timing?

You can simply hold and vary your small selection of high convinction coins, add, sell when you feel is right and then have lots of buying power on hand to play the market at critical points such as instant bouncy dip adds

Calculated narrow diversification works well for many

Also, having a smaller number of holdings allows you to stay up to date with news, day to day price movements and key Catalysts.

- Healthy BALANCE

you don’t want too many, but you also don’t want too little, just like everything in life, good balance is key

Maintain a good balance between risk and reward with all. have some $ in large caps, some $ in small caps, diversify throughout the levels, but not too much!

The Crypto market requires you to stay on your feet as we all know

I suppose, imagine if everything started to plummet Heavily down right now, would you feel in control or would you feel panicked like a headless chicken with your overweight, overdiversified, 0 buying power, drained and diluted portfolio?

Just a thought for all, and I’ve learnt this from experience, from crypto and stocks too, overdiversification can be quite inefficient and negatively impacting upon your mental setup in terms of decreasing accuracy through overwhelming pressure.

And then equally, a lack of diversification can result in very high risk, and just as mentally negative in the same way as overdiversifying

So gain the correct balance for you, Whatever feels right

Never overwhelm yourself and listen to what your feelings are telling you

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