Do not invest in only one cryptocurrency, regardless of your conviction. Instead, spread your investment across several digital assets. You can diversify your crypto holdings by investing in projects based on their use case or technology. For instance, Bitcoin has been touted as a store of value and might be a good way to preserve wealth. Ethereum, on the other hand, has become the largest platform for decentralized applications and smart contracts. Meanwhile, a stablecoin’s value is pegged to an underlying asset, making it typically less erratic than other digital assets. It’s good to remember that there are hundreds of cryptocurrency projects trying to achieve different things.
