Let's Define the Chosen Term

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Diversification

Diversification in the realm of Crowdlending refers to the strategy of investing in a wide range of loan projects to minimize risk. In principle, it is widely recognized that when maintaining consistent investment amounts across various loan projects, the risk is optimized at approximately 40 investments. In the context of Crowdlending, this implies that the investment sum should be divided into multiple partial investments to mitigate the impact of a loan default. For more specific insights, please refer to our blog.

Ensure a solid foundation for your Crowdlending portfolio through extensive diversification. Spread your investments across various loan projects to reduce the potential for losses. Discover the significance of diversification in Crowdlending and explore the advantages of this effective risk-minimization strategy in our blog.