HCH
HCH
I somewhat disagree (mid-to-long term). Weightage to survivorship bias is justified for most of the retail traders. We mostly hear from the winners of concentration, not from the 90%+ who got wiped. As only winners make the headlines. See..data across markets shows most concentrated players underperform or blow up long-term. And given crypto tail risks (exchange collapses, protocol hacks, regulations, black swans), counterparty risk.. (e.g., holding LUNA, FTT). So all-in-all diversification isn’t just hedging but more of a survival strategy.
CounterParty
CounterParty
Jez explains why full-porting is the best way to make it “The only reason to put money in your 2nd-best idea is counterparty risk or liquidity constraints. I’ve seen way more concentrated portfolios make it than diversified portfolios”
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