I don’t know if I’m overdiversified or just confused?

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On a general note, Diversifying with cryptos... well, it could reduce slightly the risk, but not too much. You are in a volatile, high risk market. If you don't know what you are doing, it may be time to stop and reassess your objectives. If you truly want to diversify, move part of your inversions outside of crypto market. But if you remain, I'd advise you to divide your crypto funds in percentages: - 80% on big coins: BTC, ETH, XRP, DOT.... - 15% on promising projects: Alpha coins (VELO...), new coins with a promising white paper... - 5% on shitcoins. That bit is pure gamble: If they succeed, you earn big. But you'd likely lose everything. Then decide your strategy. Basically you can focus on three main strats: Day scalping Follow the big market fluctuations Hodl Add DCA to 2 & 3 "Day scalping" means you buy & sell fast, for small profit each time, many times a day. Requires a lot of work, market analysis and cold blood. Considering you "don't know what you are doing", I wouldn't recommend that. To "follow market fluctuations" is done in three steps: Fine out a good moment to buy a few of the big coins. Remember the price you bought. Decide a price increase in which you will sell. IE: Buy BTC at 65k, sell at 100k. Wait until price reaches sell objective. This requires some analysis, but as you focus on big price changes, it is way easier and more relaxed. You may do a trade today, and not make another one in months or years. HODL: Buy, and keep buying, hoping prices will go up. It worked wonders for those who did it for years, but you cannot know if it will work nowadays. The main advantage is that it is simple: You buy and forget you have criptos at all DCA: Dollar Cost averaging. But regularly the same ammount of fiat currency (USD for instance) of the cryptos you choose. This makes price dips & surges less step. It avoids the risk of putting all your funds in a moment when price is too high, but the opposite is also true. Basically, you sacrifice a bit of potential benefit to reduce potential loses. Anyway, stop, reevaluate your strategy, and carry on. Crypto is very volatile, no matter how much you diversify.