/biz/ - Business & Finance

Diversification as a strategy is for lazy people who don't want to think and want to minimize fluctuations in their portfolio balance, not for people who want to make money. It's a defensive measure, not an offensive measure. You CANNOT become rich with a diversified portfolio. What people don't realize over the last 40 years is that stocks are now all correlated to each other and federal reserve pumps, so diversification is always going underperform meme bluechip stocks. Basically, the game is rigged.

With crypto, the game is less rigged, but diversification isn't protective because most shitcoins just go to zero. The lazy strategy doesn't work in the presence of so many outright scams. The safest strategy is to just dump everything in BTC because it has like 80% dominance of the entire cryptospace. If you want an aggressive strategy, you'll look for obvious pump and dump scams and get on early, get a safe 20-50% gain, then get out immediately and wait for the next one. They happen every week so it's not a big deal if you miss one or two and you're patient. Alternatively, if you can identify a really good project really early, you can buy a bunch and hold it for a few years and catch a 100x that way, but it takes YEARS. And you have to not sell. ETH and LINK believers fall in here, and I think PNK is the next big one.