Diversifying Your Portfolio in Crypto - page 4.

globalpain

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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.

You will be able to diversify your portfolio if you know exactly how those coins move in the market in most cases, and that is why we need to be more knowledgeable first on the crypto coins and on the market itself. For me, I prefer to invest more in bitcoin like 60% of it and 40% for some solid altcoins as there are times that they can be more profitable than bitcoin. We have to be more careful when it comes to selecting altcoins as some are only good at first and once the market dumps, they can no longer recover. For newbies, check the history first of the coins so you will have more ideas which of them are have high potentials to survive whenever the market is in bloodbath.

I agree because after all having knowledge and skills is very important before starting whether it's investing or trading,
other than that before buying coins at least we need to do our own research,
and I'm sure everyone has their own way

pinggoki

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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.

That's what many people will tell you but before you can do that, you're going to need a lot of money to be able to spread your investments far and wide, this advice is good but the only problem is that it's going to take a long time before you're going to do it especially at the beginning where you're experiencing a lot of losses and you're more susceptible to frustration and losses because you don't have the emotional capacity yet to be strong during bear seasons.

TheGreatPython

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Quote from: iv4n on January 07, 2022, 04:10:12 AM

It's what most of us are doing for a long time, moving to the stable coin when the market crash is near! I believe before making a move everyone should draw some conclusions and do their homework or else we can lose money, making a mistake in trading always leads to some loss! I wanted to point out that diversifying can be good, I am not a maximalist of any kind, so I believe that many coins have a big potential! 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!

Just because market dropped doesn't mean that people should be moving to stablecoins, in fact they should be moving into crypto and out of stablecoins if you ask me. Since the price is low right now, or at least lower than expected, this means price will go up even higher, that is why we should be buying right now.

I have diversified my portfolio long time ago, at one point it was 100% bitcoin but slowly I traded some of it and got some other coins, and I also added more money and got some other coins as well and now it is more like 30% bitcoin and the rest is others. Up until this fall I had some stablecoins as well but just like I suggested, I ended up buying some crypto with it since I see it going down.

isaac_clarke22

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Quote from: 2girls on January 07, 2022, 12:37:43 PM

~

When Bitcoin dumps, many shitcoins just see their last days. It is just not that worth buying anymore even if you have a lot to buy any coins and no, from my experience, I was almost zeroed out when I bought some of the alts back then. I never bothered touching the altcoin side ever again after those days.
I don't even day trade anymore.

2girls

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It is true When Bitcoin dumps altcoins also dump, so when altcoins are down you can choose some great coins/tokens in the dip. After market recovering they will surely give profit. Recently BTC dumped to 40K, so altcoins also dump. Those who takes entry in some altcoins they have surely made profit.

jaberwock

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Quote from: iv4n on January 07, 2022, 04:10:12 AM

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.

Quote from: andriarto on January 07, 2022, 11:15:50 AM

diversification is an option to reduce the risk of drastic asset declines. but if bitcoin falls then in fact this will be followed by most other altcoins, but indeed with different percentages of decline.

This is the reason, diversification within crypto space is needless; we just need only bitcoin here. We must look to diversify our overall portfolio with all other investments like gold, stocks, bond and real-estate properties. This way most assets will not rise or fall simultaneously.

andriarto

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Quote from: iv4n on January 07, 2022, 04:10:12 AM

Quote from: DoublerHunter on January 05, 2022, 05:01:10 PM

Quote from: iv4n on January 05, 2022, 04:23:50 PM

Quote from: checkmatesir on January 01, 2022, 06:03:48 AM

...

^ Back up plan in diversifying a portfolio is a good move, because not all diversified portfolio has become profitable, sometimes you will be trapped with the thought that you are in the right move but in fact, you are in the trap. Diversifying needs to draw a conclusion before such action and decision because it will create a massive loss when you got your wrong move. I usually diversify my BTC holding into a stable coin when I saw there is a massive drop in the market price, to cut further loss, you can diversify your BTC to stablecoin.

It's what most of us are doing for a long time, moving to the stable coin when the market crash is near! I believe before making a move everyone should draw some conclusions and do their homework or else we can lose money, making a mistake in trading always leads to some loss! I wanted to point out that diversifying can be good, I am not a maximalist of any kind, so I believe that many coins have a big potential! 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!

various strategies carried out by an investor, diversification is an option to reduce the risk of drastic asset declines. but if bitcoin falls then in fact this will be followed by most other altcoins, but indeed with different percentages of decline. but if you want to take advantage of the moment to buy, then while waiting it's a good idea to put some assets on stable coins. but if we have placed the asset on the major coin, I think the bearish season will not be a problem, because we will continue to hold it until we reach the target

iv4n

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Quote from: DoublerHunter on January 05, 2022, 05:01:10 PM

Quote from: iv4n on January 05, 2022, 04:23:50 PM

Quote from: checkmatesir on January 01, 2022, 06:03:48 AM

...

^ Back up plan in diversifying a portfolio is a good move, because not all diversified portfolio has become profitable, sometimes you will be trapped with the thought that you are in the right move but in fact, you are in the trap. Diversifying needs to draw a conclusion before such action and decision because it will create a massive loss when you got your wrong move. I usually diversify my BTC holding into a stable coin when I saw there is a massive drop in the market price, to cut further loss, you can diversify your BTC to stablecoin.

It's what most of us are doing for a long time, moving to the stable coin when the market crash is near! I believe before making a move everyone should draw some conclusions and do their homework or else we can lose money, making a mistake in trading always leads to some loss! I wanted to point out that diversifying can be good, I am not a maximalist of any kind, so I believe that many coins have a big potential! 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!

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Quote from: Wawa2013 on January 02, 2022, 04:16:08 PM

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You're only going to lose them if you sell them at losses. But if not, you're still good in holding it until you see the profit for each of them. Everyone can diversify as much as they can but it's that, when you diversify, make sure that you're not overdoing it.
I've seen investors that are overdoing it and doing it wrongly because they thought that it's the best thing that they're doing. But with the looks of what they do, it's very wrong because you see them diversify with too many altcoins that are not even popular and familiar.

When we are going to diversify, we should only choose coins that have a high demand, usually the coins that are at the top of
the coinmarketcap rankings. Because it's useless if we diversify if we choose shitcoins, it will only make us lose more money. In addition
to choosing the right coins to diversify, we also don't diversify too much in choosing a lot of coins, it will only make it difficult
for us to monitor it. I think 3-5 coins is enough, and make sure Bitcoin should get a higher percentage. Because after all investing
in altcoins is indeed more risky than Bitcoin. Usually my capital will be invested 50% in Bitcoin and the remaining 50% in some altcoins.

There are holders that chooses those coins that are low capped because once it pumps and they're holding a lot of that token, they're in tremendous profits.
That's what the others are doing and they're like hunters of new projects because it seems to them that fortune can be made there just after that token hits on many exchanges and gets a pump from the new investors.

I admit that there is a very large profit generated from investing in new projects, but the problem is it's not easy to find new projects that really give
big profits. Moreover, we have to move quickly if we want invest in new projects, usually the increase will not take long and the price will fall
immediately after rising. Therefore, if we sell late, it will take a long time to wait for the price to recover. I do not recommend investing in new projects,
if we do not have good research and analysis skills. The risk is too high if we aim to invest in new projects, and I am not a person who likes to take
too high a risk. For me, it's enough to invest safely and with low risk, by choosing an investment in top coins. I also know that some investors are
hunting for new projects that will be listed on several popular exchanges, please just do it if they are ready to face the risk.

DoublerHunter

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Quote from: iv4n on January 05, 2022, 04:23:50 PM

Quote from: checkmatesir on January 01, 2022, 06:03:48 AM

By diversifying your portfolio you can make huge gain may be you are unaware of the fact that this technique can make you more profitable you can enhance your income as well as capital. By diversifying you have to engage into various portfolio it can be beneficial for you just because there will be chance of at least one portfolio to become greater in worth and you can then surely make profit.

I agree with you, diversifying a portfolio can lead to huge profits, simply giving new and unknown projects a chance they can turn big one day, and that can be very profitable if you are in from early stages!
Also diversifying is what keeps us safe! The old one "don't keep all of your eggs in one basket" means exactly that, don't have everything in just one asset, if that turns bad what are you going to do? You will be traped, that's for sure... with diversifying you always have a backup plan, in case if one fails you can turn to another!

^ Back up plan in diversifying a portfolio is a good move, because not all diversified portfolio has become profitable, sometimes you will be trapped with the thought that you are in the right move but in fact, you are in the trap. Diversifying needs to draw a conclusion before such action and decision because it will create a massive loss when you got your wrong move. I usually diversify my BTC holding into a stable coin when I saw there is a massive drop in the market price, to cut further loss, you can diversify your BTC to stablecoin.

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Quote from: iv4n on January 05, 2022, 04:23:50 PM

Quote from: checkmatesir on January 01, 2022, 06:03:48 AM

By diversifying your portfolio you can make huge gain may be you are unaware of the fact that this technique can make you more profitable you can enhance your income as well as capital. By diversifying you have to engage into various portfolio it can be beneficial for you just because there will be chance of at least one portfolio to become greater in worth and you can then surely make profit.

I agree with you, diversifying a portfolio can lead to huge profits, simply giving new and unknown projects a chance they can turn big one day, and that can be very profitable if you are in from early stages!
Also diversifying is what keeps us safe! The old one "don't keep all of your eggs in one basket" means exactly that, don't have everything in just one asset, if that turns bad what are you going to do? You will be traped, that's for sure... with diversifying you always have a backup plan, in case if one fails you can turn to another!

Either could give out profits or would really make your losses more and this would really depend or vary on how you do handle out your investment because not all diversifying condition would result
into positive ones which means risk is doubled but also rewards or profits could be doubled too which you should take up consideration whenever you do make out other investments too
and don't rush up just because you've seen someone had able to do so.

Any situation would vary because we don't make out similar decisions and takings on things here on investing.

iv4n

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Quote from: checkmatesir on January 01, 2022, 06:03:48 AM

By diversifying your portfolio you can make huge gain may be you are unaware of the fact that this technique can make you more profitable you can enhance your income as well as capital. By diversifying you have to engage into various portfolio it can be beneficial for you just because there will be chance of at least one portfolio to become greater in worth and you can then surely make profit.

I agree with you, diversifying a portfolio can lead to huge profits, simply giving new and unknown projects a chance they can turn big one day, and that can be very profitable if you are in from early stages!
Also diversifying is what keeps us safe! The old one "don't keep all of your eggs in one basket" means exactly that, don't have everything in just one asset, if that turns bad what are you going to do? You will be traped, that's for sure... with diversifying you always have a backup plan, in case if one fails you can turn to another!

milewilda

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Quote from: fullhdpixel on January 04, 2022, 03:48:07 PM

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To be honest, I am not yet ready to fully switch to crypt. Still, stocks are also quite a good option now.

Nobody is telling you to leave the stock market. Even till now I am still investing in the stock market; I invest in gold and I also invest in bonds. They are all still good investments, and it is not bad when you try to diversify by buying cryptocurrency and also investing in the stock market. That’s where you would be sure of more success rates and knowing that you would be generating income from different sources.

There are times that the crypto market might not be doing quite well, but the stock market would be doing very well, depending on the stocks that you have invested in. And then As for bonds, you are certain about a particular percentage every year. Although the thing with bonds is that the profit you get is usually small.

Even myself do really consider out these options yet before this crypto market exist im already involved with stocks and forex which i did really tend to held it up and make out some active trades depending on the market condition and secure out profits if i do able to see some opportunity which people should really be minding off on doing this.Dont stick out or focus on single thing
in terms of income or resources because it would really fasten up your financial independence if you do know on how to play this one but of course this wont really be simple as it sounds
as this one requires extreme skill and experience for you to handle it out.

fullhdpixel

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To be honest, I am not yet ready to fully switch to crypt. Still, stocks are also quite a good option now.

Nobody is telling you to leave the stock market. Even till now I am still investing in the stock market; I invest in gold and I also invest in bonds. They are all still good investments, and it is not bad when you try to diversify by buying cryptocurrency and also investing in the stock market. That’s where you would be sure of more success rates and knowing that you would be generating income from different sources.

There are times that the crypto market might not be doing quite well, but the stock market would be doing very well, depending on the stocks that you have invested in. And then As for bonds, you are certain about a particular percentage every year. Although the thing with bonds is that the profit you get is usually small.

Desmong

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Don't always look for what it's right cause what is right might not determines the current action of the market. We should always look for what works rather. Recently, what moves the market is influence from big crypto influencers and traders because most people always look on them before pressing the buy or sell. Anything can happen in the market that's why we should follow the trend not going against it.

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Diversify portfolio is important, but not all of them are like that, so what's the situation, if needed please diversify it, but if it's not necessary, just go ahead because making them in different coins is conditional, IMHO
Like today when the market is uncertain, I only separate my assets into two or three types, but when the market moves quickly I can split my assets into dozens of types to pursue the maximum profit.
Trading is how we spread the net according to the waves, in my opinion.

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Quote from: rhomelmabini on January 02, 2022, 04:24:07 PM

Quote from: Rruchi man on January 02, 2022, 02:55:10 PM

Diversifying your portfolio is not a must, it is adviced but not a must for you to diversify especially when you are not in a position to manage or handle the financial and emotional risk involved. If you must diversify as well, do your research and make some few solid choices with projects that are promising, don't invest in too many alt coins so that you can keep proper track and not make unnecessary losses. If diversify, set durations to monitor your investment, if any seems to be going under the table with no hope, be sure to bail.

For a maximalist, I think it isn't a necessity but with an ever-changing society with the likes of crypto, I think for most people it's a must. Always the best course of advice to DYOR especially if you're new to the game and if you just blindly invest into some shitcoins then expect to wet your pants later on if your portfolio goes down to -80% or more and if you can't handle it then good luck.

People wont learn until they do get the experience which it is a really common scenario on where everybody is heading up specially when you are just new into crypto.
You would really be seeing those kind of volatility that you havent seen before and would realize that making money or profits wont really be simple as it sounds.
Diversify while you can because things arent sure to happen if you dont put up much work and effort.

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Quote from: Rruchi man on January 02, 2022, 02:55:10 PM

Diversifying your portfolio is not a must, it is adviced but not a must for you to diversify especially when you are not in a position to manage or handle the financial and emotional risk involved. If you must diversify as well, do your research and make some few solid choices with projects that are promising, don't invest in too many alt coins so that you can keep proper track and not make unnecessary losses. If diversify, set durations to monitor your investment, if any seems to be going under the table with no hope, be sure to bail.

For a maximalist, I think it isn't a necessity but with an ever-changing society with the likes of crypto, I think for most people it's a must. Always the best course of advice to DYOR especially if you're new to the game and if you just blindly invest into some shitcoins then expect to wet your pants later on if your portfolio goes down to -80% or more and if you can't handle it then good luck.

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Quote from: AmoreJaz on January 01, 2022, 06:58:13 PM

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Quote from: checkmatesir on January 01, 2022, 06:03:48 AM

By diversifying your portfolio you can make huge gain may be you are unaware of the fact that this technique can make you more profitable you can enhance your income as well as capital. By diversifying you have to engage into various portfolio it can be beneficial for you just because there will be chance of at least one portfolio to become greater in worth and you can then surely make profit.

But don't diversify that much. Because too much is also not that good. If you diversify too much, your portfolio will be divided and it could be the reason why you won't get that much gain. The others might get a gain and the others won't, so let's say that you get a balanced portfolio but you have to act on it for you to have the best coins in your portfolio. It's important to diversify but it's also important to take note that too much won't be the best idea for you.

diversify only if you can keep up with each of them. because if not, you will likely lose them. so choose only projects that you can keep up with their progress and developments. because without knowledge of where they are, you can very well lose your investments.
diversifying is indeed advisable, but you should know the status of each project that you are holding. no one can take care of your business but yourself. so it is only you that can keep up with your holdings.

You're only going to lose them if you sell them at losses. But if not, you're still good in holding it until you see the profit for each of them. Everyone can diversify as much as they can but it's that, when you diversify, make sure that you're not overdoing it.
I've seen investors that are overdoing it and doing it wrongly because they thought that it's the best thing that they're doing. But with the looks of what they do, it's very wrong because you see them diversify with too many altcoins that are not even popular and familiar.

When we are going to diversify, we should only choose coins that have a high demand, usually the coins that are at the top of
the coinmarketcap rankings. Because it's useless if we diversify if we choose shitcoins, it will only make us lose more money. In addition
to choosing the right coins to diversify, we also don't diversify too much in choosing a lot of coins, it will only make it difficult
for us to monitor it. I think 3-5 coins is enough, and make sure Bitcoin should get a higher percentage. Because after all investing
in altcoins is indeed more risky than Bitcoin. Usually my capital will be invested 50% in Bitcoin and the remaining 50% in some altcoins.

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Quote from: OgNasty on January 02, 2022, 02:15:48 PM

Diversification is always important. For me, I think owning Bitcoin is a good idea, but so is having some ETH staked at 4.5%, having some BNB staked at 20%, having some CAKE staked at 60%, owning an NFT, owning a micro cap like Namecoin, lending out MATIC at 1.5%, and providing liquidity pairs like SAND/USDT is probably a good idea too.

Those are just some ways that you can diversify not just your holdings, but also your revenue in crypto. So many people want to trade their way to riches, but it really isn't necessary. The crypto infrastructure has advanced to the point where there are plenty of opportunities to let your crypto work for you while you relax and watch your holdings grow.

Just look on wider picture and you would able to see those opportunities because its true that people do really focuses on something only on various or few ways which they could actually make more revenue on more

other possible sources of income if they do make out some wise moves in terms of diversification even though its hard since this one really requires funds for you to invest on which we know that not all

would really be having those funds for them to diversify even if they wanted to do so but well its up to someones effort on how to deal with this kind of situation.

Topic: Diversifying Your Portfolio in Crypto - page 4. (Read 1250 times)