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ASK LEO:WHEN YOU DIVERSIFY RISK;DO YOU STAND THE CHANCE TO REDUCE YOUR POSSIBILITY OF LOSSES?

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Peter Aleraiye Adekunle
@peterale
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2 min read

Undeniably! When you put your money somewhere as savings without no terms and conditions attached to it to make profit in the long-run,such money is bounds to stay stagnant or even reduced if funny enough your money is in the savings in the banking system; in the Nigeria banking system,you can't save #50,000 for 6months and expect to cash out that same #50,000, why is because some of your savings must have gone due to some bank charges like SMS charges,ATM maintenance charges,VAT charges and some other unnecessary bank charges that i see as means of exploitation. These are some of the annoying things most people encounter or must have encountered that made them to decide to direct some of their wealth towards doing business.

There are kinds of businesses that Investors see as an opportunity to invest their capital in other to make profit. And there are two forms of business Investment; that's online and offline businesses. Making this kind of decision to invest in these two form of business Investments, it's a typical example of risk diversification. For instance,some who has $2,000 as capital to invest on business. Such individual can split the capital 50/50,50% which is $1,000 can go to online business investment like investing in cryptocurrency while the other 50%,the other $1,000 can go to offline business. Even at that, investing in online business investment,one can also still diversify risk investing variety of cryptocurrency which we have many of them like hivecoin, litecoin, Bitcoin, ethereum etc Risk diversification can happen in every sphere of our business Investment. Splitting our capital for both online and offline businesses is a greater way of risk reduction.

Atleast if the offline, business is not heading towards the positive part yet,the online business investment will be doing fine or vice versa. So, for every business that we intend to invest,there's always risk attached to all forms of businesses either offline or online but when we diversify,then we have diversified the risk,the risk of losing all or making losses at once.

Thanks for stopping by to view my blog. Please do have a wonderful day ahead.@peterale cares🤭

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