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I know you must have come across this sentence regularly which states; don't put all your eggs in one basket, have you ever pondered on what it means, it means putting all your hope on one thing, it can also be likened into investing, when thinking of investing, don't rely on one asset. Diversified investment is the best way to go, spreading all your funds in different assets, as an individual planning for a better and secured future, there comes a time when we begin to make plans about investing, the best way of investing is not relying on one source as I stated, as every investment will always have a percentage of risk involved no matter how stable it is, so its best to spread your wings to different assets.

Taking the hive block chain as an example, it has made it easier for us to choose how we want invest our funds, there are diversified ways either by staking your liquid hive by powering up, using the advantage of savings and earn the Apr percentage on it or by investing in hive engine tokens, buying and holding them incase of a future pump.

All these options seems juicy and inviting, but I think it's better for us to make use of at least two options instead of one in other to gain the benefits they all have to offer.

Reason for diversification

1 REDUCED RISK

Diversifying helps us to manage our risk well, so we don't lose all our funds at a go, when we invest on different assets, even if one is not doing well at a time, the other you invested in might be catching up fine and might even help in covering up for the loss sustained in the other one, but In case of when you rely on on just one means of investment, it's all as good as gone.

2 The higher your investment the higher your income

There is also the possibility of all your investments doing well at a point, although this cannot he guaranteed at all time, but it also an added advantage, the more investment you make, the more income you will expect. The risk involved is therefore reduced to a certain percentage because it has been shared among different assets.

A wise investor doesn't invest in one thing, he diversified, are you still thinking of where to invest in the block chain? Not a financial advice, but I think it's best to invest in more than one of all the numerous benefits presented for us.

Thank you for reading❤❤.

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