Topic: Diversifying Your Portfolio in Crypto - page 10. (Read 1250 times)
Don’t create the fuzz of alts and it’s dependent nature on bitcoin. Simply consider every coin as different one and then invest. It would be seriously damaging if you gonna predict the future of altcoin based on bitcoin data itself. I mean what do you know about the altcoin? That project might be booming this year, there might be bigger developments as compared to the previous year or even month which may bring good economic conditions to that project. It may just show different % movement in the coming days. That’s why you should not create portfolio based on bitcoin movement’s at all.
All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
But how we Apply these rules in Crypto Market.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
So what would be the right strategy of Diversifying Crypto Portfolio...
But how we Apply these rules in Crypto Market.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
So what would be the right strategy of Diversifying Crypto Portfolio...
Not all altcoins is dependent on Bitcoin price movement. Some of them are in opposite trend to Bitcoin during dump, It depends on how the community of the project support and value the project. Most of the supporter of coin usually consists of just traders that's why it was weak everytime Bitcoin showing a strong selling pressure.
Diversify portfolio is good but don't do it on a bearish market because it will just hurt you badly. Diversify when the market starts to recover. When market is in bloodbath its much better to change asset to stablecoins.
Thank you for this Helpful advice.
Some Youtuber or crypto Analyst says. put your money in different coins, memes, Exchange coins, Metaverse and gaming coins, DeFI coins etc
What is the Psychology behind that advices.
Some Youtuber or crypto Analyst says. put your money in different coins, memes, Exchange coins, Metaverse and gaming coins, DeFI coins etc
What is the Psychology behind that advices.
I don't know about the psychology, but as I said before, diversifying is about reducing risk, but reducing the potential return as well.
In classical investment theory, one must diversify to avoid losing everything. If you put your money in shares of a single company, there is a very high risk that you will lose it all, even if the company is a good one. However, if you divide your investments among several stocks, properties, commodities, etc. you reduce the risk a lot.
In the crypto world this seems silly to me, as all alts have been proven time and time again to lose against Bitcoin in the long run. The only more or less solid contender is shitEthereum. There are many fancy alts that promise they are going to be the next Bitcoin but just as quickly go up as they go down.
I would recommend you diversify but into other assets. If buying crypto buy Bitcoin, and if anything a bit of Eth or some other you trust (lol) and if you want to diversify more, buy stocks, mutual funds, RE or commodities.
All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
We also hear:
“Diversification is protection against ignorance,”
or:
Diversification is selling the winners to buy the losers.
But how we Apply these rules in Crypto Market.
So what would be the right strategy of Diversifying Crypto Portfolio...
Buying only Bitcoin or at least 90% Bitcoin.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
That is why it is better to invest than to play roulette (a.k.a. trading).
Thank you for this Helpful advice.
Some Youtuber or crypto Analyst says. put your money in different coins, memes, Exchange coins, Metaverse and gaming coins, DeFI coins etc
What is the Psychology behind that advices.
All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
We also hear:
“Diversification is protection against ignorance,”
or:
Diversification is selling the winners to buy the losers.
But how we Apply these rules in Crypto Market.
So what would be the right strategy of Diversifying Crypto Portfolio...
Buying only Bitcoin or at least 90% Bitcoin.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
That is why it is better to invest than to play roulette (a.k.a. trading).
All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
But how we Apply these rules in Crypto Market.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
So what would be the right strategy of Diversifying Crypto Portfolio...
But how we Apply these rules in Crypto Market.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
So what would be the right strategy of Diversifying Crypto Portfolio...
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