Diversifying Your Portfolio in Crypto - page 5.

suzanne5223

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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.

Yes, diversification of portfolio is good because it reduces risk and also provides the chance of not missing out on what some benefit other cryptos have to offer but nothing in this world that comes with a favorable condition that won't have some drawback.
The major drawback of diversification of portfolio is management and before anyone would try all that you said she need to have adequate knowledge of managing 2 or more assets.

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

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

tbh, I am one of the people that don't believe in trading your way to being riches in crypto because those days seem to have gone.

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Quote from: VuSpark on November 24, 2021, 02:51:26 AM

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

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.

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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.

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Quote from: VuSpark on November 24, 2021, 02:51:26 AM

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.

I’m sorry, but was it every altcoins in the market that got dumped when Bitcoin increased in value? I am very sure that there are a lot of them that increased in value as Bitcoin was increasing, so many of them like Ethereum, Polkadot,Doge coin, NEO, ripple, Cardano, and I can go ahead to mention a lot more of them. And of course there are also coins that decreased in value as Bitcoin increased, but that is not what happened to every coin in the market.

There are some of them that collaborates with Bitcoin’s price and as it increases, they also follow it to increase. And there are those that are entirely different from it and might go down if Bitcoin is increasing in value, because investors are going to dump these coins to invest in other coins that are increasing in value. Why you are told to diversify your investment is in case that one happens not to be successful, the other would be. So you just have to look for coins that are really good and invest in them.

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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.

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Diversification is one of the ways I always do so far when investing or even trading in cryptocurrency. That I do because I only want to manage my capitals. I know that the big or small capitals will need some money management. And all in concept is not here wiser. Diversifying will lower the risks. Although all in may sometimes give very bi profits, but ti means also high risks.
So, just do your own best management of capital and also risks.

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Not all coins dumps there are still some coins that was left going up along with the Bitcoin the reason why you shouldn't put it all along in one basket is that if the not all coins dumps at the same time and some are still going up. It's good for your fund so it will not be easily lose a position that was just my personal opinion and I choose to diversify my portfolio rather than staying on one cryptocurrency.

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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.

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Quote from: barbara44 on December 24, 2021, 05:20:30 AM

Quote from: milewilda on December 23, 2021, 06:32:13 PM

Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really vary on how you do handle up yourself on these kind of situations.

Yeah, there are lots of factors we need to consider before diversifying our portfolio. Budget must be the first criteria but people go for arranging new fund for the reason of diversification but they should start investing from the beginning by keeping diversification in mind. But, people do buy bitcoin for $1000 and then think about diversification then going for new funds for altcoins to diversify their portfolio which may not eliminate the risk but will add up another layer of risks.

After budget, investor must take time to find real potential coins while diversifying. But, most new investors choose random coins just for the reason of not investing in one or same coin which eventually ending up in investing in shitcoins.

Lots of factors indeed when it comes to consideration because you do need sufficient financing plus having that good research plus success wont be a guarantee no matter how good the project is but at least choosing

the project which does have potential could really give those odds of having profits at least.Diversification is always been recommended plus you could really have the chance to recover if one of your investment had

failed down on which you wont really be worrying up that much not compared if you do have only one which it would really be putting you on hard situation.

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Quote from: Accardo on November 24, 2021, 06:01:56 AM

Keep building your portfolio and know the exact time to sell a specific coin. The cryptocurrency market cannot be predicted so, I cannot state exactly what coin will make it to the top or to $15 from 5 cents. So watch the market and read more of white papers. this practice will guide you about different projects. listen to your instinct only. When you are told not to put all your eggs in one basket do not ignore the advice because the volatility of cryptocurrency is unpredictable. If you have let's say 2k to invest watch the coins that have pumped and stayed for quite sometimes before going bearish, check the interval at which it took for the coin to go back to it's previous ATH.

Because, I remember a specific coin Nano that made it to $15 when bitcoin was at 50k early this year, but fell back to $5 when bitcoin slacked back to 29k but after the wave of bitcoin to 59k again the coin remained and was dangling at $5 - $6 which was not a good sign. Altcoins cannot be predicted like bitcoin, but it is better to spread your net of baits (funds) to the river of cryptocurrency. they is no way the fish (profits) won't get to you. Good luck

Very well said mate, I totally agree with you, and your last words which said to

Quote

spread your net of funds to the river of cryptocurrency, there is no way the fish(profit) won't come

this statement made me remember one time I had invested in more than 11 different crypto coins, a bear month came and about 7 or 8 of my coins were in red while the rest remained in green, few days later, 2 out of the 11 different coins I hold mooned hard and made me alot of profit which even covered all the losses I was recording in other coins.... This experience made me agree for sure that nothing is like diversity in investment, it makes no sense to tie all your money down in just one or two coins.

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Quote from: barbara44 on December 24, 2021, 05:20:30 AM

Budget must be the first criteria but people go for arranging new fund for the reason of diversification but they should start investing from the beginning by keeping diversification in mind.

Unfortunately people come to know about diversification principal only after making their first investment (in most cases and I am talking about myself as well). For example, when people do hear about bitcoin then they will go for investing with it if they do get convinced by the potential of bitcoin and in mean time definitely they will not get time to go for studying the principles of investment which must be the problem you have notified.

Quote from: barbara44 on December 24, 2021, 05:20:30 AM

most new investors choose random coins just for the reason of not investing in one or same coin which eventually ending up in investing in shitcoins.

Valid point and I agree which is the reason we are having bitcoin still around $50k levels if there would be no other major options in this crypto space then we might have bitcoin to be trading above $100k levels by this time for sure.

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Quote from: milewilda on December 23, 2021, 06:32:13 PM

Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really vary on how you do handle up yourself on these kind of situations.

Yeah, there are lots of factors we need to consider before diversifying our portfolio. Budget must be the first criteria but people go for arranging new fund for the reason of diversification but they should start investing from the beginning by keeping diversification in mind. But, people do buy bitcoin for $1000 and then think about diversification then going for new funds for altcoins to diversify their portfolio which may not eliminate the risk but will add up another layer of risks.

After budget, investor must take time to find real potential coins while diversifying. But, most new investors choose random coins just for the reason of not investing in one or same coin which eventually ending up in investing in shitcoins.

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Quote from: VuSpark on November 24, 2021, 02:51:26 AM

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...

There is no big deal for me even bitcoin price value get dump in the market, due to as long as your not selling I cannot consider it that you as a holder is losing the assets, of course not! In fact, nowadays, this is the right time for us to buy altcoins while we are in the alts season. As you can see there are a lot of potentials coins in the market almost all of them got dumped their price where it is a good time to buy then hold in the long term.

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Quote from: milewilda on December 23, 2021, 06:32:13 PM

Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really vary on how you do handle up yourself on these kind of situations. Diversify while you can but be wise on taking such step.

Yes, but in the end still depends on how we looked at the situation. Sometimes I'm going all-in to a certain coin that I believe will be potential if I will keep my patience waiting for that day. Diversification is good but that's not my top task. Maybe between 2-3 coins but mostly, always going all-in.

Whatever our decision, to diversify or not, we just need to put effort into how can we manage our portfolio properly in the long run.

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Quote from: ice18 on December 23, 2021, 10:10:58 AM

Quote from: VuSpark on November 24, 2021, 02:51:26 AM

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.

No your wrong, look at the price history of bitcoin and alts from January this year bitcoin up and most alts also pump, I dont know where you get this observation btc up alts down, in a bull market when btc up alts also in uptrend look at eth, when btc pump eth also pump much higher than btc this year. Diversification is always the best strategy in investment tried and tested it really works.

Bitcoin is the main trend setter thats why altcoins would most likely be going up or on the same path but it cant really be denied that there are coins which are opposing into the movement.
Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really
vary on how you do handle up yourself on these kind of situations. Diversify while you can but be wise on taking such step.

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Still, it's good to follow that principle, maybe, for now, bitcoin is the most dominant but we don't know what would happen in the future.

And also, diversifying does not only minimize losses when the market is bearish but it also increases the chance to be more profitable if the market is bullish, I mean look at the bright side, when the altcoins season comes, some altcoins are way more profitable to invest than with bitcoin, so you'll end up getting more profits not putting your eggs in one basket.

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Quote from: fullhdpixel on December 23, 2021, 03:45:51 PM

Quote from: VuSpark on November 24, 2021, 02:51:26 AM

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...

Altcoins are NOT the right option to go investing with for the reason of diversification. Because, altcoins may induce your risks against rewards as 99% of altcoins do not survive over the time. So, never try to diversify your portfolio within crypto space.

You should go for diversifying your portfolio with all types of investment opportunities which includes skills and personal-development. If you develop any innovative skills then you can easily earn and save which must be a greatest investment for entire life. If your skills working for continuous income stream then probably you may never need to worry on ROI as you can wait for any good returns.

Because as Bitcoin drops, altcoins will follow, and selling Bitcoin just for the sake of investing altcoins have no sense at all, we just lose than making a profit. We'd rather invest more than diversify our portfolio that unless if we sell altcoins for long-term Bitcoin investment, that gonna be a good decision.

If I have $10,000 as capital, I sorted it out to different potential coins but then I take a huge share of Bitcoin 60/40 sharing. We have to invest those coins that have the ROI potentials so there is no need to diversify our portfolio but rather to keep adding more to it.

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Quote from: VuSpark on November 24, 2021, 02:51:26 AM

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...

Altcoins are NOT the right option to go investing with for the reason of diversification. Because, altcoins may induce your risks against rewards as 99% of altcoins do not survive over the time. So, never try to diversify your portfolio within crypto space.

You should go for diversifying your portfolio with all types of investment opportunities which includes skills and personal-development. If you develop any innovative skills then you can easily earn and save which must be a greatest investment for entire life. If your skills working for continuous income stream then probably you may never need to worry on ROI as you can wait for any good returns.

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Quote from: Mauser on December 23, 2021, 10:18:26 AM

the correlation between bitcoins and the alt coins is very high. That is why our investment into crypto currencies should be a large part into bitcoins. The diversification doesn't really work here, but it works in a broader spectrum like you diversify out of stocks, bonds and other investment funds. So bitcoin alone is already a diversification from your conventional assets. In my opinion diversification becomes important again when investing into alt coins, because when one alt coin is going to drop in price then this is not pulling down any of the other coins. Alt coins are much more risky and if we spread out our money across multiple coins the risk profile is much lower.

I would say that large part of it should be bitcoin because for me that is the only coin that I feel guaranteed to be strong and not have any problems and have the highest trust. Don't get me wrong ETH is great and all, and there are a few others, but BTC still is the coin that I trust the most.

Not because it would be the biggest earner, let's be honest in any given year there are other coins which gained a lot more than bitcoin ever did, we have seen 100x stuff in other places, bitcoin rarely ever does 100x in a single year, maybe on early times but not sure even if that happened. So, for me, we should invest into bitcoin because we trust it the most, not because it will earn us the most.

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Quote from: VuSpark on November 24, 2021, 02:51:26 AM

So what would be the right strategy of Diversifying Crypto Portfolio...

You are right that the correlation between bitcoins and the alt coins is very high. That is why our investment into crypto currencies should be a large part into bitcoins. The diversification doesn't really work here, but it works in a broader spectrum like you diversify out of stocks, bonds and other investment funds. So bitcoin alone is already a diversification from your conventional assets. In my opinion diversification becomes important again when investing into alt coins, because when one alt coin is going to drop in price then this is not pulling down any of the other coins. Alt coins are much more risky and if we spread out our money across multiple coins the risk profile is much lower.

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