Diversifying and buying one thing after another are two different things that is not easy to differentiate. When we talk about diversifying this deals with the amount we have available in our life for Investments isn't it?. And I think diversifying is one of the best things to do when dealing with business or Investments, it help in reducing risk that associate with our business or Investments and help us to be financially stable in time if we are lucky. But did you think is just easy to diversify.
Diversifying our assets simply means acquiring multiple assets of different types in order to create a portfolio of investments, this also mean your are buying more than one thing at a time. But realized not everyone have the ability to buy different things at a time, we care to buy one after another to diversifying our assets. For instance I set a goal to buy more hive token this week and proceed to put Bitcoin in my wallet the following weeks is same diversifying and also looking similar to buying one after one.
Buying assets or things one after another is the common one we are use to and many people misinterpret it as diversifying and it's most common in the world of finance. They are essentially buying the same thing over and over or putting money on same assets to replace another. However the difference between the two is that diversifying is way of adding different things to your portfolio while buying after one is about replacing what you already have.
Having money and splitting it into multiple assets at once can be seen as buying an alternative known as diversification. But in reality, some people find it difficult to get familiar with different assets, I met a kind of investor who only invests in Bitcoin. I see it as putting all the eggs in one basket, but it's not true when I heard their side of the strategy. The way we all believe that crypto is here to stay, they believe that Bitcoin will drive the other cryptocurrency, which is the truth. If bitcoin succeeds, other cryptocurrencies will succeed and diversification is not necessary, which is why they focus all their attention on one asset. However, these are the kind of investors who essentially buy the same thing over and over again. They buy one to replace one.