SEC S17-W4 || Crypto Assets Diversification

To be sincere this team don't ever disappoint when it comes to dropping high quality content topic for everyone to participate.

In as much as I am writing to a to engage on steem blockchain, I must say I also learned a lot from the contest topic during my research period. And because I was opportune to learn a lot I want to use this opportunity to educate a lot of people who ventures into crypto world.

Whenever the world diversification comes to my mind I first think about the act of dividing or splitting out something for safety purpose, and I hope same thing comes your mind because that it's what it all about. No matter how profession that you are and how experience you are as an crypto trader you still don't have 100% chance of winning when it comes to crypto trading or making crypto investment and that is why they act of diversification is being introduced into the crypto ecosystems. This is done to help minimize the chances of losing 100% of your income at a short period of time.

The crypto market is known to be one of the most volatile and powerful trading market in the world this makes it very awesome and profitable to lucky and professional traders but at same time it is one of the most risky and scary market to be on because whenever your knowledge, luck or your experience tells you it's going to hit you hard or better still you going to lose so much of your capital in a single trade.

In the past cement traders have lost all their assets or portfolio at a very short period of time this is because they practice the very risky type of trade whereby a trade that uses all of his capital and invest on just one single investment asset or would I say a cryptocurrency and unfortunately these single asset which they trust so much, turns out to generate a massive bearish movement which could liquidate area asset they have.

But if they were experience enough to know about diversification or homes won't be lost even if a single asset goes bearish, this is because the profits generated from the previous trade code help cover up the loss made from that single trade that when bearish. Mover when you lose all your asset at same time there's high chassis he experience some traumatic, mental and emotional side effects that's could be very deadly or chronic today human health and psychological behavior.

But whenever half of your trade capital is lost, you feel quite relieve that you didn't go all in and your loss would just be minimal with hopes that you could generate what you lost previously for a single trade, this alone helps stimulate moderate as stabilize the mentor emotional and psychological state of the individual at every period of time.

Now for example if I want to make an investment of $30,000 and I buy Bitcoin for $30,000 hoping to generate profit from this so asset and unfortunately for me the asset crashes or experience she was bearish movement as seen in the past few days am I generate so much lost at a very short period of time, this alone we affect me and traumatize me at the very high rate because I didn't expect such a loss and I didn't adviseify my investment capital

But if I become smart enough and uses my $30,000 to buy 5,000 worth of Tron, $5,000 worth of STEEM, $5,000 worth of XRP, $5,000 worth of Solana, $5,000 worth of ethereum and $5,000 worth of Shiba Inu coin. If if unfortunately XRP clashes and goes bearish and Solana also crashes and goes bearish, but STEEM pumps times 15%, bitcoin pumps by 10%, xrp pump by 18% and Shiba Inu coin pumps by 20%. Despite the fact that two of my asset investment went wrong and for others went profitable I would be happy because there is Hope that they keep pumping and I generate my total capital with some other profit at a very short period of time.

As I've said earlier diversification help stabilize the mental health of an individual because it give them hope despite the occurrence that happened from other trade. Losing all asset at the same time is very risky to to the human health because most times losing all your asset could put you into intense depression a frustration. But having those just one asset from your diversification trading will still keep you intact because you will derive hope for the existing or the remaining asset that you have diversify .

Diversification of crypto it's a very helpful efficient and effective technique which I use to secure my assets and Grant me assurance that I don't lost every asset I have at the same period of time . Sharing your investment capital into numerals asset is one of the safest way to trade in crypto ecosystem.

No matter how technical and experience you can be you still need to take safety precautions while placing your investment strategy, applying diversification you just like having a plan b in case your plans feels you will still be safe. Most traders also called it a type of risk management technique that's could save you from losing a lot of money.

Another thing to watch out while diversifying your asset is to make sure that each asset you are investing on her totally not related to each other in any format, for example investing on steem and at the same time investing of Hive is a big risk to me because there is high chances that you something happen to hive there will be little negative impact and the price of steem.

All thanks to diversification, although I was also affected by the Luna currency crash that affected so many people, although I was sad that I lost so much asset but I had something to hold on to and console myself with. And that is because I diversified all my investment capitals so therefore I didn't lose all my assets or capital from that crash in the crypto market.

This is because they both chain usually pump at the same time and experience bearish trend at the same time, although although this similar movement in the boat asset are not always exact but their range is usually close . So in summary i would advice you make sure that they both asset don't move in the same direction at the same time.

Another thing I do is are you sure that the motive in which this asset are usually different for each other, I won't invest in two asset that have similar motive, for example as long as I have STEEM I wouldn't buy asset like blurt and hive instead I would buy asset like XRP that is driven by different motive . Unlike Steem, hive and blurt, that is focused of social media activities, XRP is focused on financing institutional across any border.

On a general note diversification can help mitigate market for the volatility in so many ways. First of all before finding how to mitigate the volatility of a crypto market we should first find out what drives volatility in the crypto market. In my own knowledge and perspective one big motivation to the volatility of crypto market is the buy pressure of traders and investors and also the sell pressure of this investors and traders at every period of time.

When an investor or a big whale comes to the market to invest a five hundred billion dollars on asset, his actions and and decision might have positive impact or negative impact to the crypto market at that particular period of time.

Also another example imagine a big whale wants to withdraw money or crypto investment to fund some of his business direct, also imagine this investor has a hundred billion worth of PEPE and the investor didn't diversify his capital into different crypto asset like Steem or Tron. If that investor successfully withdraw all his asset at the same time from the PEPE blockchain, the trader might generate a massive volatile bearish movement at that point in time.

But his impact an influence to the price of this asset depend on whether he goes all in or one asset or he diversify on different assets, if he goes all day with all that which sum of amount to a single blockchain like Bitcoin or like steem, the volatility of that blockchain tends to increase bullishly in a massive way. He's influence on the volatility also depend on the asset is investing into, just imagine him investing that some of money into a small value asset like Shiba Inu. The bullish volatility of the asset because very high and intense at that period of time.

Also we all can see that Bitcoin was very volatile in the recent week which took it bearish to a monthly all time low of our $57,000 and do you know the reason behind that? Although other scenarios or conditions had influence on the price of Bitcoin but one major reason why it became very volatile last week what's that the outflow of Bitcoin ETF was very high in fact it was more than 300 million to roughly 600 million USD in the past 3 weeks that's alone had a massive impact on the price of Bitcoin.

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As an investor who have diversify in both Bitcoin and steem, diversification has been very important to me in fact it has also been very profitable to me, during the recent bitcoin bearish movement where every trader who had most of the investment in Bitcoin where complaining and going scared, I wasn't because I I diversified my asset with other assets including steem. Luckily for me when bitcoin was facing it downtime and bearish movement steem on the other hand was experiencing a nice bullish movement as you can see on the chat below.

Both images from Source and Source respectively

So mere looking at the chat you could see that team made me proud when Bitcoin was experiencing bearish movement and Bitcoin started a moving bullish when Steem had a little setback by moving bearish with the -4 %, in this case I don't have any reason to be sad or scared at the movement of any of my asset because when one is down the other one cover up the loss at the point in time .

Sincerely speaking even though I don't have any other asset in my portfolio, I will always make sure and I will continue to make sure I have Steem coins in my portfolio this is because Steem is my first love and this will still be my love for as long as crypto market exist.

Steemit and it's native assets steem opened my eye to crypto market, also with the help our crypto academy I learned a lot about crypto technologies and technical analysis tools that could be very beneficial and very helpful whenever you are analyzing and monitoring the crypto market system. For this reason my love for Steem grows deeper and deeper as times goes by.

In fact my first source of capital that was invested into the crypto market was from steem, I did that to diversify my asset and reduce any sort of risk that is known to come with the upside down of the crypto market. Another reason why STEEM fits perfectly into my portfolio is that mere looking at the structure of steem blockchain it's obvious that the future of steem is great and I would love to be part of this great future.

Also technically speaking STEEM has a great foundation and a sincere and hardworking team that does everything possible to keep the platform going easily and faster, the team are always looking for ideas to take steam to a greater place in no distance time and for this reason I see great potentials in this cryptocurrency and as a smart investor I want to partake in this great future and destiny that comes with Steem blockchain.

Sincerely speaking this mindset is what is expected of every investor or trader out there, before making your investment or trusting any blockchain he should work and look deeper to find more about the team and the motive and willingness of the team. This is because some teams of blockchain leadership have poor attitude towards that blockchain because they are after just their selfish desires instead of working hard for the growth of the blockchain. Investing into such blockchain would be very risky because at any time such blockchain and cryptocurrency could crash easily.

I invested on steem because I trust the working procedure of the team and I always want to be an early part of a team, that pushes for greatness I love their blockchain just as the love their self. One thing for sure is that steem blockchain would regain its position as part of the top 10 cryptocurrencies in the world. despite the fact that it might take time I see believe in the blockchain and it working procedures. And from my observations this predictions of a greater steem blockchain is not very far from us, so I would advise anyone who wishes to participate in a greater future to invest in steem blockchain just as I did.

There are so many cryptocurrencies that attract me and give me willingness to invest in, this asset are very awesome and their working methodology it's really amazing and they inspire me to participate in their growth because their future seems very bright. As I have said there are so many but I would be listening just few and I'll make my analysis on them.

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Although you might say you just a memecoin but I must say to you what the thing are doing is really amazing and I must say I really admire the work done on the project in fact the team is not yet done because daily we hear update about upcoming update and plan in which when executed would take Shiba Inu to a greater height in no distance time.

Recently at around last year in the month of August the Year 2023 Shiba Inu team came up with an idea which is to develop a version 2 of Shiba In, this upgraded version is supposed to help the blockchain or the meme coin increase its transaction speed which was known to be very slow into the fact that it was created on the older versions of ethereum blockchain.

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In fact according to record shon above it's obvious that Shiba Inu is one of the best meme coin to have ever existed because it's turned out to be a successful project activate short period of time, till date so many investors including me trust so well about the success and a future of this powerful meme coin.

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As you can see above the report gotten from binance shows that Shiba Inu has generated 12 million dollars from investors, that's to say it has been a very successful project and you can also see from same image that it was reported that Shiba Inu made for free 17% profit over a week and from the first image you could see you could see Shiba Inu made 5% profit. With the above research data I hope I have successful convinced you for more reason why you should also looking to Shiba Inu project.

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TRON is one of the best EVM-compatible Layer-1 blockchain that makes uses of its own TRON Virtual Machine help developers and users easily create and deploy different smart contracts technology for so many decentralized applications. Its uses the Delegated Proof-of-Stake also known as (DPoS) consensus mechanism, which is used to produce 27 Super Representatives in every 6 hours to help in validating, production of block, maintaining the blockchain.

Another awesome crypto project that I am proud of and I always investing is Tron blockchain and this is because historically speaking Tron blockchain have really been outstanding. In a short period of time we have seen Tron blockchain move from 0.045240 dollar which was of a very low value, to it's new awesome price of 0.122590 per dollar.

Although I strongly believe this you try to starting point for this awesome blockchain technology, have been a big fan of the community and I follow it Chief Executive Officer CEO and founder Justin Sun on telegram so I can follow up on all the latest informations and update about the blockchain and I must say the team have been really working hard to come up with an improved and a better blockchain.

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As you can see from the yearly report which just started 5 months ago we can see tron is already making 13% profit which shows it is a good investment assets that you can trust them to generate you maximum profit, tron has been moving in the profitable format in a long period of time and I don't think this bullish trend is going to stop until it reach it goal which is to hit at least a dollar or more than $10 in a very short period of time.

Recently in the month of Oct. 25, 2023, TRON blockchain mainnet was successfully upgraded to GreatVoyage-v4.7.3 (”Chilon”), this was done to improve the speed of starting up a node and inalization of this nodes, also help maximize and improve the working structure of the network structure for the blockchain so that it becomes very secured and very much scalable.

According to sourcewithin the first quarter of the the year tron circulating market cap awesomely $10.7 Billion hits and it's revenue in USD and in Tron hit $128 million dollars and $1.0 billion respectively and it annual real yield hit 7.0%, this shows that the potential of this asset are really mind blowing and very profitable.

As an investor I have diversify my asset to Bitcoin, Steem, Shiba Inu, Pepe and Tron. This is because all the listed asset above seem to have a great future ahead, and I know it will be smart to participate in any great project while it's still fresh. I participated in Bitcoin because I have hope that they halving would generate profit and a new high high, and every other assets I participated on. I have specific reasons and believe that it would generate me profit in the future.

Please note all images that were not sourced were all gotten from https://ng.investing.com/

I am inviting my friend @sahmie @uzma4882 @steemdoctor1 @huzaifanaveed1, thanks for going through Remember STARRCHIS cares ❤️.

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