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Topic: Diversifying Your Portfolio in Crypto - page 6. (Read 1222 times)

hero member
Activity: 2492
Merit: 542
December 23, 2021, 11:10:58 AM
#86
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.   
hero member
Activity: 1344
Merit: 502
December 23, 2021, 09:38:58 AM
#85
Diversification of portfolio is technology to get advantages from different platforms. Selection of multiple portfolio is fantastic In contrast with investment in one and only one product as its yield will be greater. I think that this is not an innovative way because so many individuals have adopted this way. It is important to get advantages by make put cash in so many stock since it is very advantageous.
full member
Activity: 616
Merit: 100
December 14, 2021, 04:06:47 AM
#84
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...
actually diversifying aims to control the risk of loss. but there is nothing wrong if you want to put in one basket of eggs. but the most important thing is the selection of coins that are in one egg really must be a strong coin to face the market situation.
i see if there are thousands of coins in crypto market not 100% affected on btc drop activity completely.
hero member
Activity: 2926
Merit: 640
December 14, 2021, 01:05:52 AM
#83
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...
A right strategy in crypto investment is, you do not need to diversify if you invest in bitcoins. But, you need to diversify your portfolio with all other investment types along with bitcoin. It means, in crypto space, bitcoin alone is more than enough for any investor and to minimize risks, you may look for other opportunities like stocks or real estate.

Bitcoin alone got the potential to sustain and all other altcoins do come and stay but may vanish at any time when a new "better" altcoin arrives which is the reason, you may completely ignore altcoins. You may see some altcoins may grow 2000% overnight but such things are pure gambling and here we are discussing about legit things. Still, you are ready to risk then you may allocate less than 10% of your crypto capital for altcoin investments (please note less than 10% is not in your total portfolio but only in your crypto allocation).
newbie
Activity: 37
Merit: 0
December 13, 2021, 09:38:34 PM
#82
Not all altcoins will change with the price of Bitcoin. Investment diversification can reduce risks. When the price of Bitcoin drops, you can also obtain certain benefits by investing in other altcoins and reduce risk losses.
legendary
Activity: 3150
Merit: 1125
Leading Crypto Sports Betting & Casino Platform
December 06, 2021, 07:23:20 PM
#81
this is not diversification, when the price of bitcoin drops all altcoins drop too so where is the diversification in it? people need to buy cryptptos, but investing in the real world as well and other online investing, that's diversifying. getting stuck in crypts just isn't diversification
legendary
Activity: 2534
Merit: 1338
December 06, 2021, 07:15:05 PM
#80
Good point, many times people think of diversification only in terms of their portfolio, but it is also important to diversify our income streams, many people depend exclusively on their jobs to get some money, but regardless of the amount they earn if at some point they are fired they will find themselves facing huge economic issues really quickly, however if instead we have two or more income streams if one of them dries up we have another ready to help us out soften the blow, until we can find yet another income stream to replace the one we lost.

But there is a catch in crypto trading, alt coins are strictly dependent on BTC for there price gain or loss. Even if we diversify our portfolio, if btc falls all our coins will fall in price. So there is not much gain in diversifying your crypto portfolio. These are just my few satoshis.
And you are right about that observation, there is a very high correlation between bitcoin and the movement of altcoins, however there are more markets than the market of cryptocurrencies, you can choose other attractive assets from those markets and in this way achieve a true diversification of your portfolio, however while this could give you some protection against the volatility of the market, at the same time we need to think if this is the right time to diversify our portfolio, after all many are expecting for the bull run to continue during the next months and in that case it would be better to wait until the bull run is over before we try to invest in other markets.
sr. member
Activity: 1876
Merit: 318
December 05, 2021, 06:30:19 PM
#79
Good point, many times people think of diversification only in terms of their portfolio, but it is also important to diversify our income streams, many people depend exclusively on their jobs to get some money, but regardless of the amount they earn if at some point they are fired they will find themselves facing huge economic issues really quickly, however if instead we have two or more income streams if one of them dries up we have another ready to help us out soften the blow, until we can find yet another income stream to replace the one we lost.
But there is a catch in crypto trading, alt coins are strictly dependent on BTC for there price gain or loss. Even if we diversify our portfolio, if btc falls all our coins will fall in price. So there is not much gain in diversifying your crypto portfolio. These are just my few satoshis.
I get your point, of course, altcoins will also fall especially during the bear market, but when it comes to investment, we can invest in long term so the short term price volatility would not affect us. Once the market recovers and starts to be bullish again, altcoins will probably be benefited more as they are more profitable than bitcoin, and of course, we can verify that by looking at the top gainers this year so far and comparing it with bitcoin's total gain in percentage.

Actually there is nothing wrong if we invest only focus on Bitcoin, but if we want to make a much bigger profit, we have to be willing to take risks
by investing in altcoins as well. As you said altcoins have been proven to be able to provide much greater profits than Bitcoin. So it is very important
to diversify when we are going to invest in crypto, so when the market is bullish and makes all the coins pump, of course this will give us
a big profit. Most importantly we have to choose the right coins in our portfolio list, because not all altcoins are good for investment. My advice is
to invest 50% in Bitcoin and another 50% in some potential altcoins. So we can generate large profits when bulls occur.
legendary
Activity: 3080
Merit: 1292
Hhampuz for Campaign management
December 05, 2021, 05:39:31 PM
#78
Good point, many times people think of diversification only in terms of their portfolio, but it is also important to diversify our income streams, many people depend exclusively on their jobs to get some money, but regardless of the amount they earn if at some point they are fired they will find themselves facing huge economic issues really quickly, however if instead we have two or more income streams if one of them dries up we have another ready to help us out soften the blow, until we can find yet another income stream to replace the one we lost.

But there is a catch in crypto trading, alt coins are strictly dependent on BTC for there price gain or loss. Even if we diversify our portfolio, if btc falls all our coins will fall in price. So there is not much gain in diversifying your crypto portfolio. These are just my few satoshis.

I get your point, of course, altcoins will also fall especially during the bear market, but when it comes to investment, we can invest in long term so the short term price volatility would not affect us. Once the market recovers and starts to be bullish again, altcoins will probably be benefited more as they are more profitable than bitcoin, and of course, we can verify that by looking at the top gainers this year so far and comparing it with bitcoin's total gain in percentage.
newbie
Activity: 2
Merit: 0
December 05, 2021, 04:08:32 PM
#77
Wasn’t Andrew Carnegie the way to become rich is to put all your eggs in one basket and then watch that basket? If you buy an alt for pennies and sell for dollars in a bear market your lucky. You don’t need much diversification. I prefer Bitcoin and platforms Ethereum, Solana, Binance and in the next bear markets I’ll be buying more of each and exchange tokens especially FTT.
full member
Activity: 1050
Merit: 110
December 05, 2021, 04:48:39 AM
#76
Good point, many times people think of diversification only in terms of their portfolio, but it is also important to diversify our income streams, many people depend exclusively on their jobs to get some money, but regardless of the amount they earn if at some point they are fired they will find themselves facing huge economic issues really quickly, however if instead we have two or more income streams if one of them dries up we have another ready to help us out soften the blow, until we can find yet another income stream to replace the one we lost.

But there is a catch in crypto trading, alt coins are strictly dependent on BTC for there price gain or loss. Even if we diversify our portfolio, if btc falls all our coins will fall in price. So there is not much gain in diversifying your crypto portfolio. These are just my few satoshis.
hero member
Activity: 2996
Merit: 609
December 04, 2021, 05:58:33 PM
#75
This is true. 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.
When we do consider about diversification then this is such action that shouldnt really be hurried or for you to rush up because this would really result into mistakes because you would really become that desperate nor become careless on making out decisions.On times like these

then you should really take all consideration before making such step because this isnt something that you do put and then leave it the rest.

You should be wise on taking such step because this would one cost if you dont know on what you gonna do.

bottomline, each alt or coin that you want to explore with, you also need to do your own assessment and not rely on someone else. the term diversification may be simple but when it comes to actual activity, one may be confused on what coins he needs to get a hold of. the list of coin is long but from that list, you only need to select few coins to invest with. and that is the hard part, how to select from those thousand alts. better go for projects with strong presence in the market, that means, they are actively used because of their application.
Dont ever tend to listen into others because nothing beats out if you do follow on what you had made out some analysis based on your own and decide based on your knowledge and guts been telling you.

Diverisfying is best but be sure to find or seek the best ones because diversifying into several shit coins doesnt really make any difference.

Its suggested but doesnt mean its simple for you to be done.
legendary
Activity: 2562
Merit: 1873
Leading Crypto Sports Betting & Casino Platform
December 04, 2021, 05:46:51 PM
#74

Buying only Bitcoin or at least 90% Bitcoin.
I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.
You should allocate good percentage with Bitcoin since this can be your safe haven while the altcoins are not working properly, holding Bitcoin is always advisable same thing on diversification. Never go all in even on Bitcoin, that’s still risky and not a good way to invest. I do hold Bitcoin and trade altcoin as well, this is very effective for me.

As we have observed throughout the years, bitcoin has been tested by time. There will be ups and downs, but that's just part of the market. But its value has tremendously increased as compared the last 5 years or so. It is the top alt, so we can assure ourselves that this will not disappear when we are sleeping. And then to diversify your portfolio, look at top 10 alts first and evaluate which one will have the strongest applications in the market. Because with strong app, you know they can survive even with bearish market.

Diversification is very good, although I think that internal diversification in crypto is something else, when we diversify in crypto we think of altcoins, and altcoins are usually a direct consequence of the movements of bitcoin and bitcoin is the boss. Currently there is the market for NFT games which has capitalized a lot of money in projects which is a similar fever to those of ICOs in 2017-2018, which is based on tokens that are relatively new, some people have capitalized money there and have done enough, but the investment and the risk is high.
legendary
Activity: 2534
Merit: 1338
December 03, 2021, 07:50:31 PM
#73
True. Diversification is a strategy and like all strategies these have to be moulded to each individual. There is not point buying anything you see just for the sake of being spread in shit markets. Wise choosing still applies.

Some people understand the word 'diversification' by exposing themselves not only to traditional markets in stocks and shares but also in the suit of strong projects in the crypto space. This is true diversification - or at least the way I see it Grin

I think diversification goes deeper then just your holdings as well.  Income should also be diversified.  If you're investing into the crypto space for example, you likely don't want your entire investment based on buying and holding.  You might also want to purchase some miners and mine Bitcoin, as well as some GPUs mining altcoins.  You may want to advertise for services or sell your own products.  You may want to stake some altcoins or provide liquidity pairs.  You may even find yourself investing in DAOs, creating NFT collections or building projects in the metaverse.  Going outside of crypto this same thing can apply.  Most people buy stocks and bonds that pay dividends, but they could also be selling covered call options for additional income, or buy real estate and rent it out in addition to having a regular job.  There are so many ways to diversify yourself.  Do yourself a favor and do them all.
Good point, many times people think of diversification only in terms of their portfolio, but it is also important to diversify our income streams, many people depend exclusively on their jobs to get some money, but regardless of the amount they earn if at some point they are fired they will find themselves facing huge economic issues really quickly, however if instead we have two or more income streams if one of them dries up we have another ready to help us out soften the blow, until we can find yet another income stream to replace the one we lost.
full member
Activity: 1526
Merit: 111
Pepemo.vip
December 01, 2021, 06:52:43 AM
#72
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
full member
Activity: 2478
Merit: 215
★Bitvest.io★ Play Plinko or Invest!
December 01, 2021, 04:37:08 AM
#71
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...
These perceptions only applied to those who does not Trust Bitcoin that big , because if you are then surely you will never try investing in shitcoins and will just put all your funds in bitcoin.
Yeah the price dumps at certain time , but also the value increases so high in perfect time, meaning since you are talking about Investing  then why just HOLD and only Bitcoin?
and also never try to make exemption in ranking altcoin because still Bitcoin is the best.
member
Activity: 1162
Merit: 58
December 01, 2021, 04:26:24 AM
#70
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...
Put majority of your funds inside Bitcoin , at least 50-70% .

then diversify your remaining funds in 4 equal parts (in coins that you deeply researched and not just those shitcoin advised here .)

if Bitcoin increases then sell all of the funds, then wait for the altcoins to pump.
full member
Activity: 1834
Merit: 166
December 01, 2021, 02:01:48 AM
#69
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...
Most of the altcoins follow btc path as when it's up they are green and vice versa and it is usually adviced by traders to diversify your portfolio with different coins that all your funds are not lost at once only.Suppose you invested $1000 in one altcoin only and it crashed to zero or low targets your $1000 are gone immediately with that but if you have scattered $1000 among different coins some would go up and some down you will still have something left with you.So it's advisable for having diversified portfolio to save you from major loss.
hero member
Activity: 2912
Merit: 613
Winding down.
November 30, 2021, 10:15:38 PM
#68
True. Diversification is a strategy and like all strategies these have to be moulded to each individual. There is not point buying anything you see just for the sake of being spread in shit markets. Wise choosing still applies.

Some people understand the word 'diversification' by exposing themselves not only to traditional markets in stocks and shares but also in the suit of strong projects in the crypto space. This is true diversification - or at least the way I see it Grin


When we think of diversification, first of all you need to have larger funds so you can widespread your range of investments and not just focus on a single investment. This will definitely reduce the risk and increase your sources of income. But it does not mean that you have to put on your funds on different investments regardless of their potentials. Of course there should be a proper DYOR before deciding which way to invest. And i suggest maximize your investments in bitcoin and put a little amount on various promising altcoins that you think will prosper in the long run even if your strategy is simply buying and hodling.
donator
Activity: 4760
Merit: 4323
Leading Crypto Sports Betting & Casino Platform
November 30, 2021, 08:05:40 PM
#67
True. Diversification is a strategy and like all strategies these have to be moulded to each individual. There is not point buying anything you see just for the sake of being spread in shit markets. Wise choosing still applies.

Some people understand the word 'diversification' by exposing themselves not only to traditional markets in stocks and shares but also in the suit of strong projects in the crypto space. This is true diversification - or at least the way I see it Grin

I think diversification goes deeper then just your holdings as well.  Income should also be diversified.  If you're investing into the crypto space for example, you likely don't want your entire investment based on buying and holding.  You might also want to purchase some miners and mine Bitcoin, as well as some GPUs mining altcoins.  You may want to advertise for services or sell your own products.  You may want to stake some altcoins or provide liquidity pairs.  You may even find yourself investing in DAOs, creating NFT collections or building projects in the metaverse.  Going outside of crypto this same thing can apply.  Most people buy stocks and bonds that pay dividends, but they could also be selling covered call options for additional income, or buy real estate and rent it out in addition to having a regular job.  There are so many ways to diversify yourself.  Do yourself a favor and do them all.
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