Do we need to diversify? - page 56. | Bitcointalksearch.org

Jalum

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Look ARROUND!

Quote from: Johnnywelsh on March 26, 2018, 06:18:21 PM

Important thing to remember it's not just about buying into different tokens you need to buy into tokens in different sectors. If you put all your eggs into tokens associated with energy or utility and a big player fails it's likely the price on all the others will come down with it.

Take Bitconnect as an example, one scam coin got found out and it brought Tether with it.....oh wait no it didn't. Ignore any signs of common sense in crypto world!

There's usually a coin that is going to get famous for scamming people. It's better to just not promote it.

Johnnywelsh

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Important thing to remember it's not just about buying into different tokens you need to buy into tokens in different sectors. If you put all your eggs into tokens associated with energy or utility and a big player fails it's likely the price on all the others will come down with it.

Take Bitconnect as an example, one scam coin got found out and it brought Tether with it.....oh wait no it didn't. Ignore any signs of common sense in crypto world!

$$$sparkles$$$

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Quote from: islakevin on March 26, 2018, 07:57:48 AM

Why 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...

Tumanggor

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Quote from: islakevin on March 26, 2018, 07:57:48 AM

Why do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.

the coin that gives me a lot of profit is just Bitcoin, I just focus on Bitcoin, although up and down its price like a roller coaster, I do not want to hold another coin, because I'm afraid it will only make me lose.

Lonsdayl

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I can't hold everything in one coin. It won't be clever enough. All money love diversifying, both digital and fiat. So you should use coins from top10 and top 30 to create save investment profile.

Stimah24

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If there's a better project to invest and you're really sure of it 100%. You may not need to diversify, but it's necessary to diversify in the cause of doing business because it's minimize risk of loss. So it's better to diversify your investment.

Idun

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I have my diversified investment, so the oscillations in both profit and loss are lower. I think that the risk is decreased.

Superzpay

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Quote from: islakevin on March 26, 2018, 07:57:48 AM

Why do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.

If a person know about a coin and know about the details of its future that it will go more higher than any other then he can go but it is also sure that there are many coins and at a same time not only one coin go much higher but at a same time we have saw a number of potential coins going increasing much higher that is why we often suggest for to diverse.

yura_878

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Quote from: islakevin on March 26, 2018, 07:57:48 AM

Why do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.

Of course, you need to diversify, because if you have only one coin, you are very much at risk of losing a significant portion of your money, usually the gain will also be great.But now almost everything is falling, and hoping for strong growth is very risky

Bounty_Hunter

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Personally, I believe that it is necessary to invest no more than 40% of funds in crypto. And divide these funds among 5 or more cryptocurrencies. I think this is the best strategy for risk diversification.

dashunka

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I keep my money in the ETH and BTC, and I also have 5 coins for a long line, in which I'm sure. in the rest I'm just afraid to keep my savings.

aoluain

legendary

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yes it is considered good practice to diversify but you can choose
to put all your attention into one coin and play it very safe.

Personally I have diversified but not by too much, meaning I dont
hold any more than 15 tokens, there are those who hold a small
amount of a lot of different coins in the hope that at least 1 will
make a big return.

Rodimill8

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Quote from: islakevin on March 26, 2018, 07:57:48 AM

Why do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.

sure you are right.We need to diversify our holdings. Dont enter in 1 coin with all money. Take 5 or more coins. . If some coin fall down other coin can grow up and save your money. Also if you buy many coins you have chance to catch a good coins in future like neo or verge.

chesatochi

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In any market, you have the same rule that applies when investing in stocks, bond or crypto. You need to dilute the risk against the ones that have the risk to fail in the long run.

sammyp

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Diversifying your holdings is best one can do to minimize risks. No cryptocurrency is predictable so you can not really say a particular coin will keep rising and thus fetch you profit. You need to have several of them so that as some decrease in value, others will increase thus making your holdings a bit stable.

Livermore_

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We do not need to follow any concept or rule, we only follow the fact of being tested several times. To explain better we should have mind the idea of balance and the idea of eggs in a basket can help, so when we put all our eggs in a basket and when we lose or something go wrong the frustration always appears. Diversifying is the way to possible alternative profits and avoiding frustrations.

TheFirstCreator

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I think it's worth keeping an average of 3-4 coins, but you need to invest in them to make a profit in months 5-6 with long-term investment.

DUCAT COIN

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Clearly haven't heard not put all your eggs in one basket. Its the same principal. If you put all you money into one currency and that currency drops by 50% you loose 50%
of your investment. If your money is spread evenly over 5 currencies and the same one drops by 50% you ultimately only loosing 10%. But i mean its still your own choice how you want to do it. I prefer having my funds spread a bit for security, but don't get me wrong, there is still a chance all 5 investments drop at the same time, it to unpredictable.

bob3772

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Quote from: seo-maestro on March 26, 2018, 01:54:45 PM

Need to diversify because it is the only way to decrease our risks in crypto

Pretty much this is it. We do not know with certainty how our different coins will perform, if we did then we would invest entirely in to the best performing coin. Given we do not know we can spread our investments to limit risks, this is because crypto projects can succeed or fail for a variety of reasons we cannot see or control.

seo-maestro

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Need to diversify because it is the only way to decrease our risks in crypto

Topic: Do we need to diversify? - page 56. (Read 3740 times)