Definition ∞ Single asset holding refers to an investment strategy or portfolio composition where an individual or entity maintains exposure to only one specific digital asset. This approach concentrates all investment risk and potential returns into that sole asset. It contrasts with diversification, which involves holding multiple assets to spread risk. This strategy reflects a high conviction in a particular asset.
Context ∞ In the digital asset investment landscape, single asset holding is a common topic in discussions about portfolio management and risk. News often features analyses comparing the performance of single asset portfolios against diversified ones, especially during periods of market volatility. While it can lead to substantial gains if the chosen asset performs exceptionally well, it also carries concentrated risk, making it a subject of continuous debate among investors.
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