I strongly believe that the best technology will be accepted in the long run, so I don't understand why Bitcoin is so heavily overweighted in a lot of portfolios.
I know being first is also important, but you can't call a portfolio with 90% Bitcoin diversified.
Another point is that Crypto currencies in general have a high correlation. So even if being diversified properly in Crypto currencies a portfolio with 100% Crypto currencies can hardly be called diversified and other asset classes might be a good addition to diversify properly.
Topic: Bitcoin/Altcoin Portfolio strategies - page 2. (Read 2023 times)
When pursuing a buy-and-hold strategy investing in crytocurrencies, what are the best practices for diversifying among them?
Ie.
Own by market cap' weight?
Own 10% of top ten (by market cap')?
Own varying percentages of your top 5 favourite projects?
90% Bitcoin, 10% new ICOs?
The idea is to mitigate some risk (Bitcoin is least volatile), whilst having exposure to alt-coins as 'emerging currencies' with high potential.
Any theories?
I'm leaning to one of weighted by market cap', but I'd like to hear other suggestions.
Ie.
Own by market cap' weight?
Own 10% of top ten (by market cap')?
Own varying percentages of your top 5 favourite projects?
90% Bitcoin, 10% new ICOs?
The idea is to mitigate some risk (Bitcoin is least volatile), whilst having exposure to alt-coins as 'emerging currencies' with high potential.
Any theories?
I'm leaning to one of weighted by market cap', but I'd like to hear other suggestions.
I'd say it's a weighted combination of all 4, with your own risk tolerance being key in determining percentages. For example, it's going to weigh on you if a favorite or two are not included due to them not being in the top 10. You might also prefer to exclude certain top 10 members for bad fundamentals or technicals, or simple being overvalued. A 10% figure for ICO's and other speculatives sounds reasonable. At the end of the day it's a very personal decision balancing risk tolerance and profit objectives . . . with risk tolerance usually winning out in my case.
Check out this thread for more ideas https://bitcointalksearch.org/topic/turn-10000-into-1-million-1936239 and good luck.
The third option you posted is the best. I would do some research and chose about 5-10 projects with active development a new features to be implemented. I would get into their slack channels to be aware of any news. I would study the charts to see if the coin is in the accumulation phase or if at least there has not been a pump recently. If these conditions are met I would invest in this coins. With 5-10 coins you could diversify your portfolio and wait for the respective prices to rise.
90% Bitcoin, 10% new ICOs?
This probably will be working way of playing securely. Moreover I like to suggest you to go only for 5% by increasing the share for bitcoins into 95%To be honest, I am not keeping any altcoin in my trading portfolio as I do invest only in bitcoins still I am hold few altcoins like doge and lite but I am not trading them regularly unlike how I am doing with bitcoins.
When pursuing a buy-and-hold strategy investing in crytocurrencies, what are the best practices for diversifying among them?
Ie.
Own by market cap' weight?
Own 10% of top ten (by market cap')?
Own varying percentages of your top 5 favourite projects?
90% Bitcoin, 10% new ICOs?
The idea is to mitigate some risk (Bitcoin is least volatile), whilst having exposure to alt-coins as 'emerging currencies' with high potential.
Any theories?
I'm leaning to one of weighted by market cap', but I'd like to hear other suggestions.
Ie.
Own by market cap' weight?
Own 10% of top ten (by market cap')?
Own varying percentages of your top 5 favourite projects?
90% Bitcoin, 10% new ICOs?
The idea is to mitigate some risk (Bitcoin is least volatile), whilst having exposure to alt-coins as 'emerging currencies' with high potential.
Any theories?
I'm leaning to one of weighted by market cap', but I'd like to hear other suggestions.
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