Allocation vs Diversification

Quick comparison to help you distinguish these two crypto terms.

Allocation
beginner
strategy

Allocation is the percentage of your total portfolio value assigned to each individual cryptocurrency, expressing how your investment capital is distributed across different assets.

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Diversification
beginner
strategy

Diversification is the practice of spreading investments across multiple different cryptocurrencies or asset classes to reduce the risk that any single asset's decline damages your entire portfolio.

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