Diversification vs Portfolio Drift

Quick comparison to help you distinguish these two crypto terms.

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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Portfolio Drift
intermediate
strategy

The unintentional deviation from target asset allocation where winning positions grow larger while losing positions shrink, creating concentration unaligned with original investment plan.

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