Decentralization is a big topic in the crypto space. Many are talking about it and are using decentralized applications but they do not decentralize themselves. What I am talking about is to decentralize your store of value by having lots of different assets and different platforms that are performing for you, inside and outside the crypto space.
That's diversification on a higher level.
1. Don't be a Maximalist
First of all, I believe that it is important to stay open-minded in life, also when it comes to cryptocurrencies. In general, becoming a maximalist of anything is dangerous.
This is also 100% the case when it comes to cryptocurrencies. Of course, you can be a fan of one specific cryptocurrency but thinking that one cryptocurrency like Bitcoin, or Ethereum, or Cardano, or whatever is the one and only coin then you are thinking too shortly.
Then you are biased and blind to certain risks and possibilities. Staying open-minded and taking a non-biased approach to all scenarios is the correct approach.
Maximalists also tend to go all-in which is, in general, no good idea, inside and outside the crypto space. You always can read about horror stories where investors lose everything because they had put all their lifetime savings into one single investment product.
2. Beyond The Crypto Space
Like most of us, I currently see the biggest potential for investors in cryptocurrencies. The market is still very young compared to others, so the potential is huge. At the same time, there is also risk involved and the fluctuations of the assets are high. That is the price that you have to pay if you like to play the game of crypto.
The reality is, that there are not only massive gains but also brutal drops in the crypto space, especially when a coin is over-hyped or a project misses some technical deadlines, massive drops are happening. Be smart and diversify your portfolio to lower the risks.
If you can not handle a 50% dip, you do not deserve a 1000x gain.
However, it is important to look beyond the garden fence of cryptocurrencies from time to time. The world does not only exist of cryptocurrencies.
Ask yourself this simple question: Do I really want to get married to my crypto and hodl them forever?
I personally would answer this question with a clear "NO" because at some point I want to make a profit. You can secure your gains by going into stablecoins or you can start investing the profit (and only the profit) that you made with your crypto outside the crypto space like in gold, silver, stocks, housing, or your own business.
3. Using Different Wallets
There are some good wallets out there that you can use, not only for your Publish0x payouts. Personally, I am using more than just one cryptocurrency wallet and there are two reasons for this. First of all, different wallets have different features. For example, my first choice for staking is Atomic Wallet, my first choice for swapping BEP2 tokens or interacting with the Binance Smart Chain is Trust Wallet, and my first choice for connecting to decentralized applications is MetaMask. For holding bigger amounts in the long term, I have a Ledger Hardware wallet.
The second and more important reason is to lower the risk of losing all my precious cryptos at once. If your one and only wallet gets compromised in some way, you lose all your cryptos at once.
This is considered a serious loss when all your crypto fortune is gone at once. It is going to be extremely hard to recover from such a serious loss. Visiting a fake website, downloading a fake wallet from the internet or the google play store, and the damage is done.
That's the second reason why I prefer not to carry all my eggs in one bag. Do not carry all your eggs in one bad to spread the risks.
4. Using Different Platforms
For the same reasons, you should not only use different wallets to hodl your crypto but you should also use different platforms to put your crypto to work as well as different cryptocurrency exchanges.
Another benefit of using different platforms besides spreading the risks is that you can collect some sweet sign-up bonuses when you use an invitation link for signing up. These bonuses can add up quickly.
Just let me give you a few examples. CakeDeFi currently gives you $30 in DFI tokens after your first deposit of just $50 (best offer), BlockFi gives you a $10 bonus in Bitcoin after your first deposit of at least $100 in any supported currency, and HODLnaut gives you $20 after a deposit of $1000 in any supported cryptocurrency. I collected all of them and these are just three examples. 🤓
My Final Words
I am not the CoinBureau that starts every YouTube video with the disclaimer "I am not a financial adviser". However, do not sue me for any losses. You won't catch me anyway. 😅
However, jokes aside, my intention is NOT to replace your own research. Always #DYOR. I may look smart on my profile pic but I am not your financial sensei. You alone are responsible for your financial decisions and no one else. 🤓
My post simply reflects my own opinion. The intention of my post is just to help you when you are going to set up your own unique strategy.
If that's the kind of stuff that you like to read on Publish0x, also check out my previous posts and make sure to hit that follow button.
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