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1. Beginner Course

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  1. 1. What are these cryptocurrencies?
  2. 2. Bitcoin - the story of a technological revolution
  3. 3. Satoshi Nakamoto, who is the creator of Bitcoin?
  4. 4. Vitaly Buterin – the creator of Ethereum
  5. 5. What is blockchain, and how does it work?
  6. 6. What is an NFT token?
  7. 7. What is money?
  8. 8. Cryptocurrencies vs fiat money, which will win?
  9. 9. What is DeFi (Decentralized Finance)?
  10. 10. DeFi: opportunities, advantages and disadvantages of decentralized finance
  11. 11. What is an altcoin?
  12. 12. Stablecoins - What are they?
  13. 13. Cryptocurrency wallet - what is it?
  14. 14. Why do we talk about bull and bear markets?
  15. 15. Security in the crypto market - what rules are worth following?
  16. 16. What is the seed phrase in cryptocurrencies?
  17. 17. Dogecoin and memecoin - what are they?
  18. 18. What is a Ponzi scheme?
  19. 19. What is a Soft and Hard Fork?
  20. 20. Blockchain - examples of use
  21. 21. Is blockchain safe?
  22. 22. What are the types of blockchain networks?
  23. 23. What is blockchain network congestion, and how does it work?
  24. 24. Cryptocurrency wallets: Hot Wallet vs. Cold Wallet - key differences!
  25. 25. Cryptocurrency wallet diversification
  26. 26. Halving Bitcoin - what is it, and how does it affect the price?
  27. 27. Blockchain versus databases: key differences!
  28. 28. How do you transfer cryptocurrencies?
  29. 29. The most important cryptocurrency acronyms/slang you need to know!
  30. 30. The memecoin story: madness or great investment?
  31. 31. What is Ethereum? 
  32. 32. Everything you need to know about gas fees in Ethereum!
  33. 33. Gavin Wood: Blockchain Visionary and Co-Founder of Ethereum
  34. 34. Decentralized Apps – what are they?
  35. 35. What is Proof of Work (PoW) and what is Proof of Stake (PoS)?
  36. 36. What is the Proof of Authority (PoA) consensus mechanism?
  37. 37. What is Proof of Burn (PoB)?
  38. 38. What is a whitepaper? What is its purpose, and how do you write it?
  39. 39. Smart Contracts - what are they?
  40. 40. Know your customer (KYC) and Anti-money laundering (AML) what are they in the cryptocurrency industry?
  41. 41. Blockchain and NFT games - how to make money on them?
  42. 42. Liquidity in the cryptocurrency market
  43. 43. Inflation and its effects on financial markets
  44. 44. What is stagflation and why does it have a negative impact on the market?
  45. 45. What are utility tokens and what use do they have in the cryptocurrency sector?
  46. 46. What is cryptocurrency mining?
  47. 47. What is the mining difficulty?
  48. 48. What is compound interest, and how does it work?
  49. 49. What Are Privacy Coins and Are They Legal?
  50. 50. What is CBDC - central bank digital money?
  51. 51. What is Cryptocurrency Airdrop all about?
  52. 52. Key differences between ICO, IEO and STO
  53. 53. What are decentralized DAO organizations, and how do they work? What are DAO tokens?
  54. 54. What is EURT? How does it work?
  55. 55. What is the difference between Circulating Supply and Total Supply?
  56. 56. Snapshot from the world of cryptocurrencies - what is it?
  57. 57. What is the Fear and Greed index for cryptocurrencies?
  58. 58. APR versus APY: what is the difference?
  59. 59. What is an Initial Farming Offer (IFO)?
  60. 60. What is Regenerative Finance (ReFi)?
  61. 61. Who Is Craig Wright, the Alleged Creator of Bitcoin?
  62. 62. What Is Bitcoin (BTC.D) Dominance?
  63. 63. Michael Saylor, Self-Proclaimed Bitcoin Maximalist
  64. 64. Bitcoin Pizza Day
  65. 65. AI blockchain - a new look into the future?
  66. 66. What is WorldCoin? Everything you need to know about this cryptocurrency!
  67. 67. Azuki NFT collection guide: everything you need to know about it!
  68. 68. The 10 most expensive non-fungible tokens (NFTs) ever!
  69. 69. The Bored Ape Yacht Club (BAYC) - the story of the popular NFT collection!
  70. 70. CyberPunks - the story of the most popular NFT collection in the crypto industry!
  71. 71. NFT Art: The digital art revolution - history and examples!
  72. 72. Who is Changpeng Zhao, CEO of Binance?
  73. 73. Who is Brian Armstrong - CEO of Coinbase?
  74. 74. Who is Galy Gensler and the SEC? How does the Securities and Exchange Commission (SEC) affect the cryptocurrency market?
  75. 75. Web3's most popular social media platforms! Will they replace the platforms we know?
  76. 76. What is IoT - the Internet of Things?
  77. 77. On-chain analysis in the cryptocurrency world: Everything you need to know about It
  78. 78. Can you pass on your cryptocurrencies after death? How do you pass on a cryptocurrency inheritance?
  79. 79. What is the Howey test? What application does it have in cryptocurrencies?
  80. 80. The use of blockchain technology in the world of sport
Lesson 25 of 80
In Progress

25. Cryptocurrency wallet diversification

Saving and investing capital is undoubtedly a kind of skill. As a novice trader and investor, you need to know what it is and what it consists of, diversification of the investment portfolio. How to carry it out correctly? 

What is wallet diversification – definition

Wallet diversification is an investment method consisting in dividing one’s capital into different groups or assets. For example, you have 10,000 in your wallet. You place them on the stock market, real estate, cryptocurrencies, tokens, stablecoins, company shares or other assets. Thanks to this, you learn to invest on various levels and multiply your profit.

It’s not the only advantage of diversified wallet. At the same time, you do not take such a risk. Diversification of the investment portfolio allows you to avoid losing your funds completely.

Even if you lose money on real estate, you are left with funds in cryptocurrencies, which offsets the loss and even allows you to recover it.

Fun fact: Wallet diversification is a great investment strategy!

There are many ways to diversify your portfolio. We will give you examples that do not focus only on cryptocurrencies and digital assets. You will see how broad the spectrum is covered by diversification:

  • Cryptocurrencies.
  • DeFi.
  • Stablecoins. 
  • DEX’y.
  • Tokens.
  • Web3.
  • Altcoins.
  • Tokenization projects.
  • Metaverse.
  • Stock market.
  • Treasury bonds.
  • ETFs.
  • Real estate.
  • Crowdfunding projects.
  • Currencies.
  • Gold.
  • Clothing.
  • Companies.
  • Actions.

And many others. Believe us, there are many ways to save money.


As already mentioned, the main advantage of wallet diversification is to minimize the risk and loss of capital associated with investing.

Other advantages include maximizing profits and ensuring better financial liquidity. What’s more, this type of investing will let you know more financial instruments, available on the market and will raise investment awareness.


Over the flaws, wallet diversification could argue for a long time. On the one hand, it should be remembered that it does not eliminate the risk of investing. It only reduces them. On the other hand, it must be considered that portfolio diversification is a bit limiting. Why? If we invest in many products, and only one brings us real profits, then in total – our profit is small.

Wallet diversification methods

  1. A risky model. If you adopt this strategy, you are placing your capital in risky assets. Of course, you first need to analyse and evaluate them. By choosing a risky model, you want to achieve above-average profits in the shortest time.
  2. Conservative model, i.e. long-term investing. A feature of this method is stability and steady capital growth

Before you decide any of the above models, please focus on market analysis and your capabilities. By adopting the right model, you can reduce your risk and increase your profit.

What’s the best way to diversify your cryptocurrency portfolio?

  1. Depending on the adopted investment strategy, the distribution of our assets will be different.
  2. To minimize the risk, however, let’s keep it a certain way to diversify.
  3. Let’s not limit ourselves to high-risk assets only. Funds in the portfolio should be divided to have assets (cryptocurrencies) with high, medium and low risk.
  4. Worth considering investing in stablecoins.
  5. Don’t make significant differences in the distribution of your assets and cryptocurrencies. The fact that suddenly the value of one of them will increase, do not list the others. This can have really risky consequences.
  6. Learn about the market and follow new trends.

Which assets are best diversified?

There is no single, specific and unambiguous answer to this question. If you don’t quite know what diversification strategy to come in, you can use portfolio trackers.

Trackers are programs that track the movements of assets in our wallet for us. The most popular ones include: CoinMarketCap, Delta or KryptoBot.

Automated applications will to some extent relieve us of tedious technical analysis.

It is also worth considering that, in fact, it is from Bitcoin a large part of the entire available cryptocurrency market is dependent on it. Nevertheless, – do not give up other available coins. With conscious investments, even a minimal degree of wallet diversification is essential. Controlling declines will allow you to cover subsequent losses with other assets available in your wallet.


Even if you use diversifying your cryptocurrency wallet, you cannot eliminate the losses that it entails investing. Nevertheless, we recommend this method. According to most experts, diversification, done wisely, makes sense. Regardless of whether you are just starting your adventure on the cryptocurrency market or you are an old stager – it is worth considering.