The most loved scene among crypto traders is the day when the entire screen is filled with green—Bitcoin breaking through resistance levels strongly, Ethereum following suit and rising, and various altcoins soaring wildly without looking back.

This kind of market can easily create illusions. You start to ponder, since the overall trend is so good, why not split your money into five or even ten parts and go long on popular coins like SOL, BNB, PEPE, DOGE? It feels like "casting a wide net," trying to grab a share from every wave of the market.

But the truth is often harsh: the "multi-open" strategy in crypto sounds like risk diversification, but in reality, it’s more like planting a time bomb in your account. This is what is called synchronization risk in finance.

**Crypto assets are not as independent as you think**

Here’s a harsh reality—most crypto assets have a correlation coefficient close to 1.0. In other words, their price movements are almost synchronized. Using traditional financial thinking to diversify investments? That’s basically impossible here.

Look at Bitcoin, it’s like a vampire dominating the entire market. When BTC crashes, altcoins usually fall 2-3 times more. Liquidity is also drained away. In contrast, traditional stock markets can hedge through negative correlations between gold, tech stocks, and government bonds, but the crypto environment is completely different.

Many claim to be doing diversified allocations, but in reality, holding Layer 2 tokens and other mainstream coins all point in the same direction. It looks like five positions, but essentially, it’s just betting on the same thing again.