Topic: Do you use diversification? (Read 4330 times)
I think the diversification of the cryptocurrency market is necessary , there are many coins and it is difficult to guess which of the coins will be successful .
You !right want to reduce risk through diversification, but if you do not do the needed research before investment, you might then find yourself investing in so many scam or unprofitable projects.
So diversify with the assurance that you are on the right track.
So diversify with the assurance that you are on the right track.
This tool is only needed in order to reduce the risks that accompany almost any area of our life, especially as unstable as a cryptocurrency market.
If you want to have a safe investment, then you have to diversify, else you might stand the risk of losing your investment, most especially for those who chose in investing in just one coin. Sometimes, cryptocurrency is just unpredictable, which is why you have to invest in more than one coin, but not in shit coins, except you feel like taking the risk.
Diversification is an excellent investment strategy that helps reduce the risk of losses and expands your knowledge of cryptocurrency behavior by analytic comparison, provided that you will be careful when choosing coins.
I think diversification is the basic rule to make a stable income and not to lose your money , I think before you invest you need to read about deversification For example, you have some altcoin (in my case it's Metaverse ETP) and you expect it to grow. But in a weak market, this altcoin behaves like bull and you have the opportunity now to sell it and buy an asset that looks weak in the market (for example Qash, Tierion, Nem, Odyssey or Republic Protocol) in order to get the greatest possible profit. Or leave a strong asset and wait for its further growth. What do you think about this?
It depends a lot on your strategy but investing everything on a single coin/asset/stock can be a lot rewarding but you also risk to lose everything on a single trade. What I've learn in these years is that diversification and money management are the most important things in trading, unless you have access to insider infos which nobody else has access to.
I think the risk to lose everything is higher in proportion to gaining in this context. It can lead to instant death.. Hahaha.. But how can one even think that? Diversification is just the key.
More or less, diversification seems to be a good idea. But when you have too many coins in your portfolio it becomes difficult to manage all of them in time
You can diversify your assets either between different asset classes or within the same asset class. For example, diversification of your investment portfolio between fiat money and cryptocurrency is diversification between different asset classes, while diversification of your cryptocurrency portfolio between, let’s say, Bitcoin and Ethereum is diversification within the same class.
Diversification does not mean to spread your investment in shitcoins as they will all struggle on a weak market.
You have to diversify your investment between crypto, investment funds, stocs, savings, bonds etc.
In case of cryptocurrencies we can also invest in different coins but after a good research on them.
You have to diversify your investment between crypto, investment funds, stocs, savings, bonds etc.
In case of cryptocurrencies we can also invest in different coins but after a good research on them.
Diversification is needed in trading or investment but we have to choose others asset and never the same crypto for that, because all crypto has the same trend, bullish and bearish nearly the same times. We should be choose others asset for diversification like stocks, gold, ETF, etc.
but some of the other markets don't have good movement. like gold and oil market, they are more stable with little movement. possible to the stock market a little bit more like with crypto. but I myself am still comfortable with the market crypto.
I invest in weak coin that established coin. Though, the risk is higher, so it is the profit too, if things goes as you forecasted. Those new crypto grows faster than BTC, Ether etc. I have tried several and it worked. Recently, i have checked some newly added coins on Coinmarketcap; forecast some and ready to invest in them. But also know that it fails at times. The invisible hand of demand and supply plays role in the market as usual.
Diversification is needed in trading or investment but we have to choose others asset and never the same crypto for that, because all crypto has the same trend, bullish and bearish nearly the same times. We should be choose others asset for diversification like stocks, gold, ETF, etc.
Diversification reduces the risk but reduces the profit as well. But this is the only option because we don't know how coins will perform within the next few months. But if you are one of the coin's management team like Project Manager or something you would know where the coin will be heading within the next quarter or two then you have a chance with a non-diversified portfolio like betting to your own company's coin.
as works with tasks of evaluation shows as investors to gains within the lists of token of selection the decision might be as with of use with reference from personal strategy as demanding to request switches of position within the lists on order with the token on index as the group of collection on wallet.
Diversification is always a good and safe strategy. Never risk everything on any single coin or investment. Once crypto market matures and finacial products like mutual funds and ETFs are available, it will make diversifying very easy for all.
I agree with you completely. When I trade, I always try to diversify my cryptocurrency portfolio in equal shares. This greatly reduces the risk.Equal shares, I don't do that.
I see many opportunities in the market and I don't see and equal for every coin, I should be aggressive with some and conservative with others.
That's my strategy, if one can risk bigger to succeed, then I think we should not be afraid of doing it, just follow our guts.
Diversification is always a good and safe strategy. Never risk everything on any single coin or investment. Once crypto market matures and finacial products like mutual funds and ETFs are available, it will make diversifying very easy for all.
I agree with you completely. When I trade, I always try to diversify my cryptocurrency portfolio in equal shares. This greatly reduces the risk. Diversification is always a good and safe strategy.
This is not a strategy to be safe, but a strategy to minimize the risk. Investing is always risk, some just choose to minimize, while some just loves to take higher risk.
Never risk everything on any single coin or investment.
Well, we should follow this rule, to again minimize the risk. Once crypto market matures and finacial products like mutual funds and ETFs are available, it will make diversifying very easy for all.
ETF might be approved soon, we are talking of US ETF here, right?
Diversification is always a good and safe strategy. Never risk everything on any single coin or investment. Once crypto market matures and finacial products like mutual funds and ETFs are available, it will make diversifying very easy for all.
Diversification is an excellent investment strategy that helps reduce the risk of losses and expands your knowledge of cryptocurrency behavior by analytic comparison, provided that you will be careful when choosing coins.
Diversification is the key in crypto investment and putting all eggs to a single basket can hurt. Playing with fire is dangerous but using some tools can prevent the burning applied to this case.
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