Add all your open positions and see your real total liquidation exposure, stress-tested.
This tool assesses the risk in a crypto portfolio by examining how concentrated your holdings are and how exposed you are to any single asset. It helps holders spot when too much of their value depends on one coin or a group of correlated assets.
It looks at each position's share of the total and flags concentration, since a portfolio dominated by one asset carries more single-point risk than a spread-out one. Because many crypto assets tend to move together, apparent diversification across correlated coins may reduce risk less than it appears.
Concentration risk is the danger that comes from having a large share of your value in a single asset or a few closely related ones. If that asset falls sharply, the whole portfolio suffers because so much depends on it.
Not necessarily, because many crypto assets are highly correlated and tend to rise and fall together, especially with Bitcoin. True diversification depends on holding assets that behave differently, not just on holding a large number of them.
Common approaches include limiting how much any single position represents of the total and being aware of correlation between holdings. Reducing concentration and avoiding leverage are general ways to lower risk, though no method removes it entirely in volatile markets.