Topic: Diversifying Your Portfolio in Crypto - page 3. (Read 1222 times)
Man is by nature an extremely lazy being. People work around the clock just to eat delicious and please others. They work for a whole year for a two - week vacation . Everything is done just for the sake of arousal and getting pleasure hormones. Think about it. please. I doubt there will be any objections. Portfolio diversification is a salvation from poverty in the future. The endless search for new tools develops the brain. I apologize for making a permanent translation through Yandex translator. Thoughts are distorted very much.
Investing in Bitcoin with a little fund is like crawling your way to the top. If you must hold Bitcoin, to and make good returns then you should have massive capital to fund your way up. To curb this issues there are projects that has a promising end so its more wiser to do a portfolio diversification. Now different coins are built on different smart chain network so it's good enough to do enough research and make an investment ignoring if the dip along Bitcoin if it dips also remember most of this projects will also upsurge once the price inflates
Huge capital = huge return but can be of huge losses as well if got mistaken.Small capital = small returns but can be of small losses as well.
Thus, if you were afraid to lose more then they have to choose to invest only a small amount. In fact, the majority of the investors had to start with small capital until such time that they can afford to lose more. It possibly happens to other people, for the starters. This is not a contest and what is important is we are already equipped with knowledge and skill in trading, not just money.
It does need to have a huge capital in investing in bitcoin, it should always be of what you can afford and not beyond that. Because if ever you will lose your capital due to the unpredictable price, you can still be able to move on and find another investment. Remember do n to put all your egg in one basket and diversification sometimes will help but this is very crucial.
Investing in Bitcoin with a little fund is like crawling your way to the top. If you must hold Bitcoin, to and make good returns then you should have massive capital to fund your way up. To curb this issues there are projects that has a promising end so its more wiser to do a portfolio diversification. Now different coins are built on different smart chain network so it's good enough to do enough research and make an investment ignoring if the dip along Bitcoin if it dips also remember most of this projects will also upsurge once the price inflates
Huge capital = huge return but can be of huge losses as well if got mistaken.Small capital = small returns but can be of small losses as well.
Thus, if you were afraid to lose more then they have to choose to invest only a small amount. In fact, the majority of the investors had to start with small capital until such time that they can afford to lose more. It possibly happens to other people, for the starters. This is not a contest and what is important is we are already equipped with knowledge and skill in trading, not just money.
Investing in Bitcoin with a little fund is like crawling your way to the top. If you must hold Bitcoin, to and make good returns then you should have massive capital to fund your way up. To curb this issues there are projects that has a promising end so its more wiser to do a portfolio diversification. Now different coins are built on different smart chain network so it's good enough to do enough research and make an investment ignoring if the dip along Bitcoin if it dips also remember most of this projects will also upsurge once the price inflates
People shouldn't just diversify for the sake of the word. One should know why one is diversifying and what cryptos one is buying. Otherwise one will end up cutting short one's winners to invest in shitty cryptos. It doesn't even need to be diversification into Bitcoin. It could be into other alts but those alts shouldn't be worthless alts. I've experienced this first hand, and I know there are many veteran members here who have tasted this bitter pill too of diversifying and then losing out big time
Losing investments is something that there would be no exclusion when it comes to real experiences and stuffs on which they would definitely be able to get passed into these events or situationswhere on reality slaps into their faces no matter how good or experienced you are.Diversification is really recommended but of course you should really be sticking into those well known
and reputable coins in the market.
You could diversify as much as you can as long you do have the capital to invest on then it wouldnt really be an issue.
People shouldn't just diversify for the sake of the word. One should know why one is diversifying and what cryptos one is buying. Otherwise one will end up cutting short one's winners to invest in shitty cryptos. It doesn't even need to be diversification into Bitcoin. It could be into other alts but those alts shouldn't be worthless alts. I've experienced this first hand, and I know there are many veteran members here who have tasted this bitter pill too of diversifying and then losing out big time
I think. that the cryptocurrency market will be sideways for a long time. Or, most likely, it will go below 20,000 for bitcoin. 17000-30000 was poorly traded. A lot of people have invested credit funds, and they will certainly lose them. The big players will empty the change wallets to zero. Diversification into all possible alternative instruments of the financial and commodity market is the most reasonable solution today.
That task may be flourishing this year, there may be greater improvements when contrasted with the earlier year or even month which might carry great financial conditions to that undertaking. I decide to expand my portfolio rather than remaining on one cryptographic money.
Assuming you put your cash in portions of a solitary organization, there is an extremely high danger that you will lose everything, regardless of whether the organization is a decent one. Expand when the market begins to recuperate. At the point when market is in bloodbath its vastly improved to change resource for stablecoins.
It's true that this is a problem that sometimes arises when trading. If it is explained here, it seems like it will be too much and difficult to understand, I suggest you open a youtube channel about it. With an explanation accompanied by a video it seems it will be easier to understand. Diversifying the market is not an easy thing because it can happen suddenly following a volatile market.
Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.
What you've said is true but it also depends on the choices and the cryptos that you have in your portfolio. If you are mostly holding and diversified into altcoins that aren't so good and usually get into pump and dump, you're more prone to losses. But a portfolio that has bitcoin and ethereum, they're likely to survive more. They're the best balancer of portfolio and based on my experience, I'm satisfied that even if the bear comes and bitcoin and ethereum go down, they're able to recover so fast. 
one can always try to diversify by checking the top alts if he doesn't know where to start.
I agree. If it seems to be challenging in choosing what coins to invest with, with the goal of diversifying one’s portfolio in a profitable manner, but one way to make it easier is to research on the top alts on different websites and perhaps check on what the existing investors has to say with specific coins or projects. And of course, it doesn’t end on putting your capital on such projects, you should also monitor its progress and keep up with the projects updates so you could also make sound judgment and decisions.
If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!
But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.Well, the ones with skills have a higher success rate, the ones without for sure have some good hits! I think there are some basics when you are checking some project, you do some research, you try it if you can, if there's a product or not, etc... and of course, there's a risk!
BNB is a good example, did we risk buying BNB at a $1 price and trading it at the $10-$20 range for a long time... where it's now? So they had something good already, a big exchange, something was happening, and they made nice records last year. So it's simple, find something good that you like, that you tried and it's working well, that project probably has a big potential, risk it and invest!
be the result so its better to have different investments on different coins as long you do have the money to invest and tend to put lots of eggs on different basket on which it could
possibly give out chances to earn more.
one can always try to diversify by checking the top alts if he doesn't know where to start. i understand that with thousand of alts, definitely, people will be confused on where to put their money. if you are worried about investing on a crappy coin, check at least the top 20 and stream down your options. also, why not start with btc. if all else fails, btc will still be here. at least your portfolio will have value no matter what.
check the developments of each project and make sure to follow their socmed in order for you to keep up with their updates.
If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!
But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.Well, the ones with skills have a higher success rate, the ones without for sure have some good hits! I think there are some basics when you are checking some project, you do some research, you try it if you can, if there's a product or not, etc... and of course, there's a risk!
BNB is a good example, did we risk buying BNB at a $1 price and trading it at the $10-$20 range for a long time... where it's now? So they had something good already, a big exchange, something was happening, and they made nice records last year. So it's simple, find something good that you like, that you tried and it's working well, that project probably has a big potential, risk it and invest!
be the result so its better to have different investments on different coins as long you do have the money to invest and tend to put lots of eggs on different basket on which it could
possibly give out chances to earn more.
If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!
But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.Well, the ones with skills have a higher success rate, the ones without for sure have some good hits! I think there are some basics when you are checking some project, you do some research, you try it if you can, if there's a product or not, etc... and of course, there's a risk!
BNB is a good example, did we risk buying BNB at a $1 price and trading it at the $10-$20 range for a long time... where it's now? So they had something good already, a big exchange, something was happening, and they made nice records last year. So it's simple, find something good that you like, that you tried and it's working well, that project probably has a big potential, risk it and invest!
Using a diversification strategy in an investment portfolio is a good strategy, but it should be noted that this strategy certainly requires a large amount of capital, because it does not only buy one coin asset, but also buys several assets so that the capital is not only in one asset or not in one basket. Each coin certainly has a different chance. When the market is bearish as it is today, there will be several altcoins that have increased, because not all altcoins have experienced a significant decline. Good research needs to be done to implement this diversification strategy
As long you do have funds to do so then diversification would be the best but if not then there's nothing you could do to make those plans real and this is why diversification kind of act would really be varying on your finances and we know that not all would really be having that buying power and next priority would be choosing on what project you would really be investing in and considering on how many projects in the market
today then finding the best one wouldnt really be easy and if you do really tend to purchase or buy those undervalued or low caps then this would be the toughest challenge of all.
Using a diversification strategy in an investment portfolio is a good strategy, but it should be noted that this strategy certainly requires a large amount of capital, because it does not only buy one coin asset, but also buys several assets so that the capital is not only in one asset or not in one basket. Each coin certainly has a different chance. When the market is bearish as it is today, there will be several altcoins that have increased, because not all altcoins have experienced a significant decline. Good research needs to be done to implement this diversification strategy
Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.
How can your losses be lessen when everything goes down ? but in a bear market I do not believe that everything goes down. Recently we are in a bear but some altcoins manage to stay pumped so yeah diversifying really works and helps reduced our losses and possibly gives us a profit when other coins that we picked are down.I think that diversification works better on investing than in trading because in trading we need to focus properly and the actions can be done quickly while investing usually takes a lot of time, and movements of the coins can change. Having enough capital is also recommended when diversifying so that you can access more set of coins.
Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.
Depending on the asset you choose to diversify, if the choice is shitcoins it does not reduce risk but increases risk because many choose shitcoins to get big profits in the short term.Diversification may be good but it doesn't always work, if you've been in crypto for a long time it's bound to experience how 2018-2019 diversification doesn't help at all to reduce risk because all altcoins including btc go down and worse when btc has gone up many altcoins never even touched their lastest ATH.
So you have to be smart in choosing a coin and I think diversification is only suitable for the long term with coins that have good potential.
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...
Bitcoin is the dominator in the market. The whole cryptocurrencies and all altcoins moves are dependent on the bitcoin movement. Altcoin rally up when bitcoin moves up and almost all altcoins are down when bitcoin is down. But this does not mean that we invest only in bitcoin and forget about the altcoins.
The advantages of having both bitcoins and altcoins in your portfolio mean that you can gain the advantage of the altcoin moves but at the same time you have the best asset bitcoin with you which will make you rich gradually. The returns on bitcoin may be slow as compare to altcoins but altcoins give much more returns when they pump.
My advice will be to hold 50 to 60 percent of your portfolio in bitcoin and with the rest of your money, diversify it in the best altcoins of your choice.
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