Diversifying Your Portfolio in Crypto

milewilda

legendary

Activity: 3094

Merit: 1127

Quote from: MFahad on March 09, 2022, 11:19:21 AM

We have to divide our portfolio into about three or four parts. The One part is that we have to be fully Spare in which we can buy it from down market down, while the one parts should be invested on top ten coins.
Some Usdt for daily scalping but after proper strategy.
I think this will increase chance of profit One part is that we have to be fully prepared in which we can state if it closes, while the top ten coats in the front are to be invested in.

Easy to say but would really be hard to be applied because not all would really be having enough capital to invest on on particular parts which you had mentioned out and thats why most people do really
end up on holding or accumulating as much as they can which they've been thinking for long term rather than on making out some short term like of trading or buying or selling decisions.
Diversification is always been recommended but due to limitation of funds then its understandable that people wouldnt able to do so.

MFahad

hero member

Activity: 2506

Merit: 645

Eloncoin.org - Mars, here we come!

We have to divide our portfolio into about three or four parts. The One part is that we have to be fully Spare in which we can buy it from down market down, while the one parts should be invested on top ten coins.
Some Usdt for daily scalping but after proper strategy.
I think this will increase chance of profit One part is that we have to be fully prepared in which we can state if it closes, while the top ten coats in the front are to be invested in.

Sokoloau

newbie

Activity: 23

Merit: 0

Diversifying your portfolio effectively avoids all financial losses when the price of one of the currencies you invest in falls. Allocate funds to invest in different currencies to gain more benefits or reduce financial losses.

Etranger

hero member

Activity: 504

Merit: 816

Top Crypto Casino

Quote from: Fredomago on March 07, 2022, 02:01:32 PM

Else, better to keep your asset intact and wait for the pump to compensate you.

What can you say about the situation when the asset was bought, then its price dropped significantly, and you practically lost a large percentage of your investment? But at the same time, it's not quite so, because the asset can still grow and still give you a profit? What is the best time, in your opinion, that can be allowed for such a "stuck" and when you should still expect a rise, and when you should sell, despite the great loss?

Fredomago

legendary

Activity: 2996

Merit: 1054

Leading Crypto Sports Betting & Casino Platform

Quote from: stomachgrowls on March 07, 2022, 01:21:02 PM

Quote from: developeron29 on March 07, 2022, 05:23:10 AM

I agree on diverifying
Just look at how AXS (Axie infinity) which is just an altcoin
returned 1000% returns in just a year

https://everycoinprice.com/?symbol=AXS&interval=1year&exchange=0

Looking at this, makes me think, diversifying my portfolio and invest returns from altcoins to stack more sats

If you do able to get in on earlier on buying AXS on those early days then you had made out some big profits specially into it ATH but now im having no confidence on including it on my portfolio

but it would depend because there are rumors for for Axie Origin which might be possibly be launched on this year which it would be also a good boost up into its main token.

As for diversification then its recommendable as long you do have the money to invest on but of course it would be more risky.

Risk is always there. If you can't deal with it better not to enter or diversify your assets, though the riskier it is, the bigger the potential that you can earn. It's always depend from how you percept and understand the market that you into. Make sure that you properly assess and analyze if what asset to invest while doing your diversification.

Else, better to keep your asset intact and wait for the pump to compensate you.

Decide when you feel that you have that opportunity to earn far better than the current that you are holding.

stomachgrowls

hero member

Activity: 3010

Merit: 794

Quote from: developeron29 on March 07, 2022, 05:23:10 AM

I agree on diverifying
Just look at how AXS (Axie infinity) which is just an altcoin
returned 1000% returns in just a year

https://everycoinprice.com/?symbol=AXS&interval=1year&exchange=0

Looking at this, makes me think, diversifying my portfolio and invest returns from altcoins to stack more sats

If you do able to get in on earlier on buying AXS on those early days then you had made out some big profits specially into it ATH but now im having no confidence on including it on my portfolio

but it would depend because there are rumors for for Axie Origin which might be possibly be launched on this year which it would be also a good boost up into its main token.

As for diversification then its recommendable as long you do have the money to invest on but of course it would be more risky.

developeron29

jr. member

Activity: 48

Merit: 14

I agree on diverifying
Just look at how AXS (Axie infinity) which is just an altcoin
returned 1000% returns in just a year

https://everycoinprice.com/?symbol=AXS&interval=1year&exchange=0

Looking at this, makes me think, diversifying my portfolio and invest returns from altcoins to stack more sats

Raymond Gary

newbie

Activity: 28

Merit: 15

Diversification is good when you're into any crypto investment.
How do you diversify your portfolios ?,
For me I give attention and get more exposure to the projects I believe so much in, like Bitcoin having the largest share base on percentage share 40%,15%, 10% ,5%, to the list.
then second thing I do is , if it happens that we futunately finds ourselves in a Bull market , I use fear and greed index to reduce my exposure to Bitcoin and increase my exposure to altcoins and from altcoins to stable coins. Why I do this is most times I have been exposed to one or project and waiting for almost my whole life for the coin to rise but diversifying will give you edge over the market.

Etranger

hero member

Activity: 504

Merit: 816

Top Crypto Casino

Quote from: nurilham on February 27, 2022, 06:56:40 PM

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

I am convinced that diversification is not only about investing in different activities, but also about taking into account the term of investment, which is different for different coins. Thus, if you are stuck in a coin for a long time, you can cash out other assets and invest them in a more promising option. That is why diversification must meet the criterion of investment term - for some coins it may be a year, for some - a few months, and for some - just days.

Polkeins

legendary

Activity: 1540

Merit: 1457

Quote from: tippytoes on February 27, 2022, 07:00:06 PM

Quote from: nurilham on February 27, 2022, 06:56:40 PM

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

Diversifying is the key not to be bankrupt early. As you have no idea which asset will do good in the market, your losses will be minimized if your assets are scattered in various markets. But in doing so, you also need to be cautious which coins are worth to invest, because with thousands of alts that we have, only small percentage can survive in this market. And that means, most of them will not be valuable in the near future. You also need to be updated with their progress so you can sell off before it declines its value.

Diversification really helps to reduce the risks, but do not forget that over time in a crypto, any coins, except Bitcoin and ETH sooner or later begin to fall in price and yield the place to others.
For example, Litecoin, Monero, Bitcoin Cash 3 or 4 years ago were in the top ten coins in crypto but now they are somewhere in the third ten.
This is not counting other less well-known coins that fell even lower. I don't think that it depends from their progress or something. It's like as in surfing.
Good coins "catch a wave" and grow greatly in price, and those who do not have time to do this disappears on the next bear market.

Hobo66

hero member

Activity: 1344

Merit: 502

Most of the people prefer to use money to buy some of the beneficial coins of different project instead of buying one coin because it is something more beneficial as you know that if one coins go down then there is a chances to lose all the money which you have put into that single coin. diversification or portfolio is a good strategy to increase your profit and decrease your chances of failure.

fullhdpixel

hero member

Activity: 2828

Merit: 611

Quote from: JohnBitCo on February 28, 2022, 04:01:23 AM

We need to understand the meaning of diversifying the portfolio. I know a friend of mine who bought 15 - 20 differend altcoins and when i asked him the reason, he told that he was taught of not to put all aggs in one basket. I didn't like his approach as it is difficult to manage and track all these trades at a same time.
Ideally, 4 to 7 coins are enough to trade and for investment. Buying more coins just increases the complexity and not easy to manage, especially for a new trader.

Is your friend didn't know that you know something about crypto? better if he ask for your suggestions than seeking for other people that he didn't know because someone can fool a newbie to invest in the shitcoins. Not putting eggs in one basket doesn't mean you will invest in 20 kinds of cryptos but getting two basket (coins) and divide your egg (money) on it is already understood.

It's okay if you invest more than two coins but as long as these coins are top old coins and not those new meme coins or unpopular coins in the market. Not only that it will be hard to manage but new coins can often make changes and if you cant cope up to the change your gonna lose your coin.

Smitty Werben Man Jensen

full member

Activity: 1568

Merit: 100

COMBONetwork

Quote from: JohnBitCo on February 28, 2022, 04:01:23 AM

Quote from: Fredomago on February 11, 2022, 12:30:57 AM

Quote from: bhadz on February 10, 2022, 05:15:31 PM

Quote from: ?? on ??

Everyone should try to diversify their assets which doesn’t mean that you should end up buying hundreds of cryptocurrencies that will end up amounting to nothing. Like I do see some people who would buy more than 20 cryptocurrencies and store in their wallets, and it makes me wonder what the hell they’re really doing?
You can just buy few cryptocurrencies and store them, as long as you are very sure that they are really good and they’re going to make the profit you need.

This is the misunderstanding of others. When it's been said that they should diversify, they're going for tons of altcoins that they shouldn't really do. It's okay to diversify whether you only have 2 or 3 altcoins to diversify with.
With that strategy they do, they're going to learn from it and will eventually have to sell the others and will lessen the number of their altcoins and won't expand that much just to make themselves diversified.

Misconception in terms of choosing assets to hold, diversifying to a much lesser numbers of assets may also lessen your stress when the market dumped down that hard, you need to pick good coins to hold while diversifying your money, one the market start favoring you your assets will bring a decent amount of benefits.

More on your understanding of assets that you will hold and how you project the future of your investment.

We need to understand the meaning of diversifying the portfolio. I know a friend of mine who bought 15 - 20 differend altcoins and when i asked him the reason, he told that he was taught of not to put all aggs in one basket. I didn't like his approach as it is difficult to manage and track all these trades at a same time.
Ideally, 4 to 7 coins are enough to trade and for investment. Buying more coins just increases the complexity and not easy to manage, especially for a new trader.

If you look at what your friends are doing it looks like it's too much to invest in 15-20 altcoins,
it is not easy to manage it all and it may not be a profit that we will get but on the contrary, namely a loss,
4-7 coins is ideal indeed or at most 10 coins

JohnBitCo

sr. member

Activity: 2030

Merit: 356

Quote from: Fredomago on February 11, 2022, 12:30:57 AM

Quote from: bhadz on February 10, 2022, 05:15:31 PM

Quote from: ?? on ??

Everyone should try to diversify their assets which doesn’t mean that you should end up buying hundreds of cryptocurrencies that will end up amounting to nothing. Like I do see some people who would buy more than 20 cryptocurrencies and store in their wallets, and it makes me wonder what the hell they’re really doing?
You can just buy few cryptocurrencies and store them, as long as you are very sure that they are really good and they’re going to make the profit you need.

This is the misunderstanding of others. When it's been said that they should diversify, they're going for tons of altcoins that they shouldn't really do. It's okay to diversify whether you only have 2 or 3 altcoins to diversify with.
With that strategy they do, they're going to learn from it and will eventually have to sell the others and will lessen the number of their altcoins and won't expand that much just to make themselves diversified.

Misconception in terms of choosing assets to hold, diversifying to a much lesser numbers of assets may also lessen your stress when the market dumped down that hard, you need to pick good coins to hold while diversifying your money, one the market start favoring you your assets will bring a decent amount of benefits.

More on your understanding of assets that you will hold and how you project the future of your investment.

We need to understand the meaning of diversifying the portfolio. I know a friend of mine who bought 15 - 20 differend altcoins and when i asked him the reason, he told that he was taught of not to put all aggs in one basket. I didn't like his approach as it is difficult to manage and track all these trades at a same time.
Ideally, 4 to 7 coins are enough to trade and for investment. Buying more coins just increases the complexity and not easy to manage, especially for a new trader.

lienfaye

hero member

Activity: 3010

Merit: 629

Quote from: ?? on ??

For diversification, I think choosing bitcoin and some of the top altcoins will make our funds more secure and we will get a bigger profit as a result of the increase in altcoins. for me bnb and eth remain my favorite must-have altcoins

Diversifying our investment is often a good choice, as what other user's said its risky to put our eggs in just one basket. But we need to understand and make a strategy on what could be the effective thing to do in order to maximize our profit. Choosing the coins to invest aside from Bitcoin is important. Many alts are existing but not all of them are worth to invest in due to scam or shitcoins. Hence extensive research is needed to find a gem, its advisable to choose an established coins.

tippytoes

sr. member

Activity: 1988

Merit: 275

Quote from: nurilham on February 27, 2022, 06:56:40 PM

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

Diversifying is the key not to be bankrupt early. As you have no idea which asset will do good in the market, your losses will be minimized if your assets are scattered in various markets. But in doing so, you also need to be cautious which coins are worth to invest, because with thousands of alts that we have, only small percentage can survive in this market. And that means, most of them will not be valuable in the near future. You also need to be updated with their progress so you can sell off before it declines its value.

nurilham

sr. member

Activity: 1498

Merit: 443

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

TelolettOm

hero member

Activity: 2086

Merit: 553

Leading Crypto Sports Betting & Casino Platform

Yes, IMO< this advice is working enough.
We need to diversify our assets into several investment in order to minimize the risks of losing at all.
However, for me, the biggest percentage should be in Bitcoin. More than others.
And the following by the top coins that exactly will have potential in the future. We may also sometimes need a small investment for new coins if we are ready with the euphoria of the pump and dump tokens. But, this is too risky.
ANd if this is for a long term investment, I will prefer to choose Bitcoin and top coins for portofilo diversification, not the hype one

Ziskinberg

hero member

Activity: 3010

Merit: 666

Quote from: Sanitough on February 11, 2022, 02:31:13 PM

Quote from: ?? on ??

although altcoins follow the movement of bitcoin, they have a different percentage increase in movement, and usually the increase in altcoins is higher than bitcoin. For diversification, I think choosing bitcoin and some of the top altcoins will make our funds more secure and we will get a bigger profit as a result of the increase in altcoins. for me bnb and eth remain my favorite must-have altcoins

Since bitcoin always dominates the crypto market, bitcoin will always be my top investment with its highest allocation. And investing into leading altcoins like ethereum, BNB, and SOL will be good alternatives to diversify my portfolio.

Indeed, that was a good choice of coins.
Even me, I give more share into Bitcoin than altcoins and I don't invest a huge number of coins but just to choose a few of them where I can see huge market potential depending on the trend. I always check on the market chart to make an analysis and to be aware of what really happened. of course, it wasn't me to choose the same coin/s for the whole life, I'd often change it when seeing another opportunity. Sometimes it happens that I only invest in Bitcoin...lol

rojan

sr. member

Activity: 1554

Merit: 374

Vave.com - Crypto Casino

Altcoins are dependent on bitcoin and are considered as separate coins. It would be wise to invest in them. If Bitcoin can be the future of altcoins based on it then it can be seen that it can be seriously harmful so here you have to keep an eye on altcoins. And as you gain a lot of knowledge on altcoins, there may be bigger developments over the months that will bring better economic conditions to the project. And the movement of the coming days can be seen.

Topic: Diversifying Your Portfolio in Crypto (Read 1251 times)