Balance with Diversification

The first benefit of a balanced portfolio is diversity. Holding onto just one coin leaves you susceptible to the ups and downs of news that solely impacts that coin.

Another example of this dynamic is Ripple. Recently, U.S. governmental bodies were focused on whether Ripple was initially breaking their regulations. Ripple sold off on the news. Cryptocurrencies are largely unregulated, and the laws around them are still being created. Therefore, investment in just one coin pins the returns of your crypto investment to the performance of that one coin.