When it came to investing for the longest time, the script was simple. You bought a house, maybe two if you were lucky, you picked up a few shares in steady companies, maybe some bonds, and that was it. Your investment plan sorted. Bricks and mortar for the long-term were security in your portfolio, while stocks were for growth. People swore by it, and for the most part, it worked for plenty of people.

Why it’s not working now…

By that was then, and this is now, and things aren’t quite the same. The world doesn’t play by the same rules anymore. Housing markets stall, interest rates creep up, and stock markets go sideways. Suddenly, that two-part plan doesn’t feel right and isn’t going to give you what you need, and your whole future is hanging on property values not dipping and your shares taking a hit at the same time. Nail-biting stuff.

Diversification makes sense

This is why more and more people are talking about and taking action on diversification. Diversification in investing is putting your eggs in more than one or two baskets; it’s about having options and choices that allow you to grow your investment as you need to. It’s not about taking away your shares and your property; it’s about adding something to it, so you’re not relying on them alone.

Because the more strings you have in your bow, the less rattled you’ll feel when one snaps.

The role of crypto in diversifying investments

Crypto isn’t anything new, but it is the most obvious answer when looking for different strings to add to your bow. It’s messy and unpredictable, and this understandably makes people nervous. House prices, for example, are tied to interest rates, but crypto runs on its own wild cycles, and one day you’re flying high, the next minute, literally, you’ve crashed and burned. Some investors like this. Those with a higher tolerance and who can play the long game are there for the extreme highs and the lows. But they’re not putting all of their money into crypto; they’re using a public or an OTC crypto exchange to help them jump in with a small percentage of their wealth to bring something different.

No crypto? No worries

Diversification isn’t just about adding crypto to your portfolio. It can mean anything. You can choose from commodities, bonds, art, and even backing small businesses. It’s entirely up to you based on what you need from your investment and what you think is a good deal for you. You simply need to be spreading the risk so that if one investment takes a hit, you don’t lose everything. It’s not about finding the magic, and it’s about not being exposed in one place.

Finding balance

Here’s the thing: there is no one single way to invest or diversify. No right or wrong answers or actions. For some, the classic rental is what they want and need, and it works for them. For others, it’s a handful of alternatives on the side of the rental, but the future is recognizing that property and stocks just aren’t enough now, and you need to move with the world and keep up, or you will be left behind, crying into your losses, wondering how and where it all went wrong.