I think this should be different from person. If you are more aggressive, then you put all the money in a basket. That's normal. If you want to stabilize it, then you should disperse your funds.
Of course, this is also related to how much money you invest. If you have very little money, then investing in only one breed is correct.
Topic: Do we need to diversify? - page 41. (Read 3740 times)
Why do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.
Intuitively, it should make sense. Do not put your eggs in one basket. Maybe some altcoins are suitable for long-term investments, and other coins are attractive for trading. But I believe basically diversification aims to reduce risk.
Yes all of us need it because in the market volatility can for all of us that is why we have to have firm management of a portfolio so that these failures don't influence ours of altcoins too much because I am sure that if you have good authors, these coins will recover from these accidents, and we shouldn't allow these to manipulation of the market and dictate to us that we have to accept as these people to think and move.
When investing in cryptocurrency, it is necessary to diversify your risks. You can not rely on the fact that some coin can rise in price and only. What if it falls in value? What then? That is why you have to invest in different coins or in different ICO projects, because if some coin collapses, then you have a chance of success in the form of other coins!
Do not put all eggs in one basket. -Warren Buffet
'cause when that basket fails, where else can you harvest? so you need to diversify your funds.
'cause when that basket fails, where else can you harvest? so you need to diversify your funds.
It is not always advisable to put all our eggs in one basket. If you have many cryptocurrencies even when the market is down. If you check the highest gainers in the coinmarketcap you will discover that one of your coin is among the highest gainers.
I do not think that now it is worth selling stable coins to buy something else. In today's market, this is too risky...
Yes we need to diversify since we do not know what will happen in the future because crypto fluctuates. We need to have a tecnique not to lost all our investment in just one time and to avoid the higher percentage of risk that we need to face.
It all depends on the coins themselves. Some of them remain or even fall off. Some well rise in price. We need to analyze the market.
Diversification reduces risks and allows us to be sure that we do not lose everything at once. In addition, the price of one coin can grow much faster than other, and to not regret about missed profit it is necessary that in a portfolio there were 5-10 different coins.
Why do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.
In addition to get income it is imperative that an investment that is only on one coin will not provide a greater profit. With that diversify of investments in some coins that have great potential to going up more profitable than with just one coin only. But remember we will face a big risk because holding many assets.
It is always necessary to diversify the risks and invest money in a few coins to protect yourself against large losses if one of the coins abruptly begs.
If you are 100% sure of one coin, then you can invest all funds in one coin.
For example, it seems to me that investing in such a coin as bitcoin will bring good profits in the future.
For example, it seems to me that investing in such a coin as bitcoin will bring good profits in the future.
We should'nt put all our eggs in one basket. In other word dont put all your capital or money in one coin. This is a strategy to distribute the risk. If one coin lost you still have other coin that will probably gain. It will compensate the loss of your other coins. It also applicable to any other investment like stocks and bonds
we need to diversify having many coin will reduce risk, if other coin fall other will rise diversification will really help in crypto currency market
It is good to diversify than putting all out eggs in one basket, market could be so funny most times, if you have many coins, while the other is losing the other might be gaining that's the essence of diversification
Diversification only reduces risk for randomly selected investments. If you have good knowledge and condition your selection on your knowledge, then the diversification math doesn't hold upWhy do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.
Again, the golden rule states to "never place all of your eggs/tomatoes in one basket." This has proven to be true time and time again. Diversifying your portfolio will increase your chances of earning profit in this market. If you stick with one coin, you may be fortunate if it sky rockets as "one time big time" would imply. But what if it doesn't? What if you got stuck and you couldn't get out because there is no one else to help you? This is the same with cryptocurrencies, you cannot rely on just one token/coin. We will always need some back up...
I think it is depend on your ability! You need to diversify if you want to make it easy and always be sure about your choice. If you are careful and want to try which other coins that is worth investing to also, you should diversify.
Of course! Diversification plays an important role of investing. Because risk exist in every single coin that could cause your loss! There is no certainty with the market movements, and that is why you need to have a good risk management to controll.
It is almost impossible for human being to guess which coin is absolutely worth for investing. Especially, if this investment is intended for long run. There are too many factors impossible to predict without having super information. That's why deversification is a reasonable thing (for most people at least).
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