Zero Equilibrium Crypto-Currency Alternative Asset Series: Undemanding Cryptocurrency Diversification Plays. Owning six cryptocurrencies doesn't necessarily mean you have a diversified crypto portfolio. Every investor insitutional or retail, applies a degree of diversification to its their portfolios. In ZE terminology, this diversification could be in one of two forms (we recommend both); - a vertical diversification, which involves diversifying (spreading capital) within an asset class. Say owing 5 different sectors in the equtiy portion of your portolio, - a horizontal diversification, here monies are spread across asset classes. So instead if just stocks, the portfolio includes fixed income, commodities, and crypto. A combination of both fortifies your investment portfolio on two fronts: The vertical diversification protects you from industry-specific risks, and asset class specific risks. If there's a fixed income selloff, the market cukd experience a commodities, equity, or Crypto bullring. So a portfolio with just one asset is only half diversified. Below we discuss and apply the vertical diversification rhetoric to Crypto. 1/8