Pro courseIntermediate10 minRisk and Mindset
Portfolio Diversification
Diversification means not depending on one bet. In crypto it is harder than it looks, because many coins rise and fall together. This module explains correlation, concentration risk, position caps, cash buffers, rebalancing and the trade-offs between investing gradually or all at once.
- 1Why diversify, and what concentration risk isWhat diversification means, how concentration risk can wreck a portfolio, and why spreading risk lowers the damage from any single failure.2 min
- 2Correlation: why ten altcoins is not real diversificationWhat correlation means, why most crypto assets move together, especially in sell-offs, and why owning many altcoins is not true diversification.2 min
- 3Position caps and a cash or stablecoin bufferHow position caps limit concentration, why a cash or stablecoin buffer helps, and the real risks stablecoins carry, including depegs.3 min
- 4Rebalancing, dollar-cost averaging and lump sumHow rebalancing restores your target mix, and a neutral comparison of dollar-cost averaging and lump-sum investing with worked numbers.3 min
Part of DUKOIN Pro
See plansEvery lesson's introduction is free to read. The full lessons, quiz and challenges come with Pro.
Education, not investment advice. Crypto prices can fall sharply and most retail traders lose money. Practice in DUKOIN uses virtual USD with no real value.