The most important bitcoin trading tips are those that focus on mitigating risk, and diversifying your portfolio is one such tip.
Too many first-time traders develop an obsession with bitcoin’s potential and fail to address its downfalls.
By trading in other cryptocurrencies, you hedge your investments. If one falls in value, your loss may be offset from profit on another.
Diversification can also boost your profits in good market conditions. If you’ve invested wisely, you could well find yourself holding multiple assets of high value.
It’s important not to over dilute your portfolio, though. You still need to assign a worthwhile amount of capital to each trade. Find a balance that reasonably increases your profit potential whilst simultaneously minimising your exposure in any one cryptocurrency.