Five coins, one bet
Different names, same direction
Most coins rise and fall together, and Bitcoin usually leads. Holding five coins can feel diversified, but on a bad day all five tend to be red at once.
When it drops, the small ones drop more
Over 2022 Bitcoin fell about 64%. Ether fell about 68%, Solana more than 90%. Smaller coins tend to amplify the big moves rather than escape them.
Count the bet, not the coins
Five long trades risking 2% each are one 10% bet that crypto goes up. Size the total like a single trade, because when the market turns, that's how it will behave.
Check yourself
You have long trades on five different coins, risking 3% on each. The whole market drops sharply. What's your realistic risk?
- 3%, because each coin is separate
- Close to 15%, because they'll likely fall together
- Nothing, five coins cancel each other out
Show the answer
Close to 15%, because they'll likely fall together — In a sell-off, crypto moves as one. Five positions in the same direction add up to one big position.