Diversification remains your first line of defense to protect against sectoral crashes. Concentrating 80% of your portfolio on a single crypto, even Bitcoin<\/a>, exposes your capital to considerable risk. Experience shows that during major corrections<\/strong>, certain assets outperform or resist better than others.<\/strong><\/p>\n\n\n\n A balanced portfolio<\/strong> typically combines blue chips like BTC<\/strong> and ETH<\/a> (50-60%)<\/strong>, high-cap altcoins across different sectors like DeFi, Layer 2 or AI (20-30%)<\/strong>, and a reserve in stablecoins (20-30%)<\/strong>. This structure allows you to absorb shocks without suffering irreversible losses on a single position.<\/p>\n\n\n\n Data from the last bear cycle<\/strong> of 2022<\/strong> confirms this. Diversified investors limited their average losses to 35-40%<\/strong>, while those concentrated on a few speculative tokens saw their capital melt by 70% or more<\/strong>. The correlation between crypto<\/a> assets often decreases during extreme stress phases, providing relative protection.<\/p>\n\n\n\n