The concept of diversification is usually talked about during discussions of the stock market. The basic gist of the idea is that you should never keep all your eggs in one basket. By allocating your resources across multiple investment vehicles, you reduce the overall risk to your entire portfolio.

So what does this have to do with online poker? Well, I’m here today to suggest the diversification of your bankroll. More specifically, I recommend that you avoid keeping your entire bankroll at a single poker site. There are several reasons why diversification of your bankroll is a smart idea.

1. Protection from the Unknown

Whether we are talking about online poker or life in general, it is never a good idea to keep all your money in one location. You just never know what might happen. You can keep your money in the safest poker site on the planet or in the biggest bank in the world and probably be safe, but there is never an absolute guarantee. Poker sites and banks alike can go bankrupt, governments can take action against businesses and natural disasters can strike at any time.

If you have a large bankroll, do not store it all at one online poker site. Even the safest poker sites in the world are not immune to every possible scenario. Spread your risk by keeping some of your money at one poker site, some of your money at another poker site and some of your money at the bank. This way you can stay in the action but not expose yourself to the same level of risk.

2. To Take Advantages of Good Deals

Bankroll diversification makes it easier to take advantage of good deals. Poker sites release new promotions and offer reload bonuses all the time. If you have all your money tied up in one poker room, it becomes difficult to move your money around to get good deals. I guess you could compare bankroll diversification to liquidity.

For example, let’s say you have your entire bankroll sitting at Party Poker. One day, Party Poker offers a new reload bonus that’s worth an extra $500. However, the reload bonus terms state that you cannot withdraw and then immediately deposit again to get this bonus. If you have money available somewhere else, you can move that money to Party Poker and claim the bonus. Without diversification, you would miss out on this deal.

3. Greater Game Selection

Even if you only break your bankroll up across two different poker sites, you get to take advantage of greater game selection. This makes it easier to find soft tables and soft tables make it easier to win more money. There are few tactics as simple as table selection that can have an immediate positive effect on your win rate.

All poker sites have natural busy periods and slow periods. By keeping a little money at two or more poker sites, you will find it easier to find good tables at all hours of the day. Plus, you gain the advantages mentioned above. Bankroll diversification is just a good idea no matter how you look at it.