Think of your crypto wallet like a Halloween candy bag.
If you only have one kind of candy and someone steps on your bag, you lose it all!
But if you have lots of different kinds of candy, even if some get squished, you still have some left.
That’s what diversification means! Instead of putting all your money into one cryptocurrency, you spread it out across several.
Here’s why that’s smart:
- Protection from Bad Guys: If something bad happens to one cryptocurrency, the others might be okay.
- Less Stress: If the price of one crypto goes down, you might have others that are going up!
- More Chances to Win: You have a better chance that one of your cryptos will do really well.
The Big Idea: Diversification is like being extra careful with your Halloween candy. It helps make sure you don’t lose it all at once!
