Diversifying Your Portfolio in Crypto - page 8.

TinaK

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Quote from: galambo on November 27, 2021, 01:11:39 PM

Quote from: Poker Player on November 24, 2021, 03:00:38 AM

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.

I would rather agree if we put 100% of our investment was on bitcoin and just fully ignore altcoin because they are completely useless without bitcoin.
You will diversify your portfolio if you are not in crypto and stick to bitcoin investment only if you invested in stocks and real estate but don't have profit yet, I would go in bitcoin. Last month, some of my friends diversified there investment from stock to bitcoin because they realized that bitcoin has the potential to gain more profit.

Diversification really helps when you know that the price will be going down, but how you can predict them if the price is unpredictable.

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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 "

Yes, this is one of the wise strategies for implementing this idea.
It is actually to lower the risks.
And so far, I am also using this management by diversifying my portfolio. But what makes to pay attention is what kind of portfolio, not all altcoins are worthy to invest in. That is why we must be smarter and more careful when choosing the altcoins themselves.

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

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

At least, we can have a wider percentage of Bitcoin in our portfolio and make some targets when to sell them.
Second, we should know the right altcoins to invest also based on percentage and what kind of trading or investment it will be.
I will prefer to choose a bigger percentage on Ethereum and also BNB for longer-term investments like Bitcoin.
Then, I will put some in smaller percentage in the middle top altcoins that have good fundamentals and also some closely events that will probably rise up the price.
Third, I will also put in some altcoins for day trade in order to take profits even in small percentages.
This may not be easy, yes, of course, every strategy will always still involve risks. But at least, we can lower the risks.

galambo

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Quote from: Poker Player on November 24, 2021, 03:00:38 AM

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.

TheGreatPython

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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...

First of all you should be straight to the point with that statement – it is only coins that correlates with bitcoin to a certain high level would be doing that. If a coin has zero correlation with bitcoin, then it is not going to be moving together with it. So, it is up to you to select the coins you want to invest in carefully, and make sure that you’re selecting coins that would be worth investing, the ones that has potential to increase in the future.

You don’t just buy any coin you see in the market all in the name of diversification, that’s totally wrong and you will be making a mistake, because that puts you in the position of losing your money when the market is down.

Mahanton

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Quote from: freedomgo on November 27, 2021, 09:48:28 AM

Quote from: tippytoes on November 26, 2021, 06:59:42 PM

Quote from: sheenshane on November 26, 2021, 06:59:18 PM

Quote from: tvplus006 on November 26, 2021, 04:58:13 PM

Quote from: dunfida on November 26, 2021, 04:10:29 PM

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week. That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit.

If you want to diversify, better look for valuable projects with existing market applications. As we have seen, a lot of new projects can't implement their objectives. So if you want a lil bit of assurance, just venture on established alts that have long been in this market. Testing the waters in hype projects are quite risky. But if you have extra funds and your instincts is saying you can profit from it, why not? At the end of the day, you are the one managing your funds.

Of course, if you want to make profits, do not just invest in those newly projects who have no guarantees to succeed. Look for those who are already on top of others because definitely they are the ones who will mostly come up successful and profitable. And if you think of diversifying your portfolio, invest a higher percentage for bitcoin and a little portion for some established altcoins. As long as you hold them for long term, then you should not be triggered easily with price corrections or any price dumps that will make the market look bearish.

You should just make use of your common sense and just like others been on which you should really be wise on making decisions and also you shouldnt really make yourself in a hurry and we know that diversifying is always been a good idea but of course the risk is more higher but if you could able to handle that then its good to go
but if not then better stick with one investment and be sure on taking profits if you do ever make out some gains which as it should be always.

geegaw

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Diversification is not always about winning, most of the time its about having a good strategy on how to lessen the risk of losing money, so its advisable to diversify but I don’t suggest to over diversify, have at least 5 good options and you can be good. I diversify on every market, Bitcoin, altcoins, and NFTs, so far I’m still making money, you can also trade or hold depends on your goals and strategy.

The main purpose of diversification is not for us to win, its purpose is to mine more portfolios that are worth our current time and resources because with just one portfolio, our flexibility diminishes and sometimes our analytical skills cannot be practiced regularly, accompanied by inefficient exploitation is the sudden resistance and long-term strike of projects. Diversity allows us to deal with two problems at the same time, delay to resolve and other department to remain independent so as not to lose target profit but as you say, many people probably still overestimate their diversity, do not know which is mainly consumed and what is garbage

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Quote from: tippytoes on November 26, 2021, 06:59:42 PM

Quote from: sheenshane on November 26, 2021, 06:59:18 PM

Quote from: tvplus006 on November 26, 2021, 04:58:13 PM

Quote from: dunfida on November 26, 2021, 04:10:29 PM

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week. That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit.

If you want to diversify, better look for valuable projects with existing market applications. As we have seen, a lot of new projects can't implement their objectives. So if you want a lil bit of assurance, just venture on established alts that have long been in this market. Testing the waters in hype projects are quite risky. But if you have extra funds and your instincts is saying you can profit from it, why not? At the end of the day, you are the one managing your funds.

Of course, if you want to make profits, do not just invest in those newly projects who have no guarantees to succeed. Look for those who are already on top of others because definitely they are the ones who will mostly come up successful and profitable. And if you think of diversifying your portfolio, invest a higher percentage for bitcoin and a little portion for some established altcoins. As long as you hold them for long term, then you should not be triggered easily with price corrections or any price dumps that will make the market look bearish.

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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...

Any strategy that's on your mind will do. The result will now be based on how you will apply it.

The famous advice "Don't put all your eggs in one basket " or " Diversify your portfolio" won't be recommended if it's not effective.

Try to make it effective by doing a self-research and some studies.

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

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

For crypto portfolio, you may not need to go beyond bitcoin. Some people may suggest to go with ethereum or bnb but I remember these same people were suggesting about litecoin some 3 to 5 years back but as of now litecoin investments are in negative in BTC value.

It would be a better practice for not looking into diversifying within crypto investments but you may extend your portfolio with stocks/bullion/real estate. A truly diversified portfolio must include all types of investments and not just one segment like cryptocurrencies. So, for crypto segment, choose only bitcoin and for stocks go with your countries fundamentally stronger projects. In some culture, people do treat gold and real estate investments as part of their spending like life's basic need but I recommend to do that purposefully.

Overall, diversifying portfolio after bitcoin investments may get negative growth in long run. Because, 99% of altcoins may not sustain in long run.

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Quote from: sheenshane on November 26, 2021, 06:59:18 PM

Quote from: tvplus006 on November 26, 2021, 04:58:13 PM

Quote from: dunfida on November 26, 2021, 04:10:29 PM

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week. That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit.

If you want to diversify, better look for valuable projects with existing market applications. As we have seen, a lot of new projects can't implement their objectives. So if you want a lil bit of assurance, just venture on established alts that have long been in this market. Testing the waters in hype projects are quite risky. But if you have extra funds and your instincts is saying you can profit from it, why not? At the end of the day, you are the one managing your funds.

sheenshane

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Quote from: tvplus006 on November 26, 2021, 04:58:13 PM

Quote from: dunfida on November 26, 2021, 04:10:29 PM

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week. That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit. But Bitcoin for sure is the safe haven if your purpose is a long-term holding, as we can see there's good news to it that for sure it will raise after this correction right now.

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Quote from: dunfida on November 26, 2021, 04:10:29 PM

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

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Diversifying does not mean you make an equal percentage on coins you invested, since you understand that bitcoin dictates the entire market, then you should put a higher percentage on bitcoin for your investment.

you can do the following.

50% - Bitcoin
30% - high volume and high market cap altcoins.
20% - low volume and low market cap altcoins.

That's my personal strategy only, it does not guarantee a profit but it works for me.

dunfida

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Quote from: Ararbermas on November 26, 2021, 02:14:39 PM

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...

it depends actually if you really know how to identify scam project. Because indeed mostly scam project nowadays were copy paste in order to get more attention in the internet. But using research you can actually obtain specific information wherein to identify new or a scam project. That why its always highly recommended to make TA when it comes investing and etc so be aware.

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not.

Diversifying is always been good if you do really have the chance because you would really be having that possible chance of recovery if one of your investment do fails.

So its up on personal choice and capability of course since not all would really be having the money.

Ararbermas

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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...

it depends actually if you really know how to identify scam project. Because indeed mostly scam project nowadays were copy paste in order to get more attention in the internet. But using research you can actually obtain specific information wherein to identify new or a scam project. That why its always highly recommended to make TA when it comes investing and etc so be aware.

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Quote from: tvplus006 on November 24, 2021, 05:57:30 PM

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

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

Regardless of which way the market is moving, you need to keep part of your deposit in stablecoins. And if the market unexpectedly undergoes a dump, in this case you will have a great opportunity to buy coins at a reduced price. In addition, part of the deposit should be directed to the purchase of BTC and ETH for long-term hold.

Despite the fact that we don't know when to move it to a stable coin is something that is difficult to predict. At least 50% of all portfolio balances there is always an alternative on Stable Coin. I still do it all as a form of vigilance, so that whenever the market experiences an unconscious dump, there are options that have secured our assets at a stable value.

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Quote from: goinmerry on November 24, 2021, 06:54:24 PM

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...

No one can tell you the right strategy, make your own instead. We have our own strategy Even we do the same strategy here, the ways and methods will be different. Give some tests. Risk some money and observe in the long run if you are making a good following on that test strategy.

Yes, exactly. Only when real money is at play and you living the experience you tend to learn much faster much quicker. Everyone is in a different situation, so it is best to devise strategies that fit around your situation, your needs.

Test strategies are the best before implementing any long term methods.Take your time, work out what works for you and stress-test before going in with large amounts.

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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...

Applying those famous quotes in crypto has a different approach. That's where our fearless analysis will take place. Either of those is proven and effective in the long run. It's just a matter now when should we do it.

Why not try diversifying your portfolio for about a year and see the result for yourself. It might be a long period but that will give you a whole overview of whether that strategy is worth continuing or not. On the way, it won't need a year around to see if that strategy will be effective to you.

GreatArkansas

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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 "
(....)

There are also some people who are not believing here.
Their quote is "You don't need to diversify once you are in a good position and sized in", something like that.

Diversifying a portfolio is pretty good since this is applicable even you have a huge or small portfolio or capital.
But overall for me, the best is always "knowing or doing research first before putting your egg on a basket".

goinmerry

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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...

No one can tell you the right strategy, make your own instead. We have our own strategy Even we do the same strategy here, the ways and methods will be different. Give some tests. Risk some money and observe in the long run if you are making a good following on that test strategy.

There's no specific strategy you can rely on like copying others' way during the situation you have mentioned.

Topic: Diversifying Your Portfolio in Crypto - page 8. (Read 1278 times)