Topic: Do you use diversification? - page 27. (Read 4365 times)
It could be that this would be a good strategy or even will make be detrimental. It would be nice if selected right and indeed a good altcoin then managed to get results from it. the next step is to select the weak and if it turns out that this choice is not appropriate then certainly will stop at this stage or may be experiencing a lull in quite a long time. may indeed everyone has their respective strategies and certainly have to understand also about the risks that could be a possibility for the obtained.
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's a good thing to have a diverse portofolio. You have bigger chances for profit if you hold more that only one kind of token.
Yes I do apply diversification on my coins, but when I see that a coin is promising, I dont replace it with other coins. Instead I try to invest another money for other coins I may find good enough to hold.
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?
I think diversification is very important too, you cannot avoid big loss if you only hold 1 coin.
Even a good coin like bitcoin can falling from $20k to $6k too. So, you will need to hold several coins to prevent loses i think.
It is encourage to do diversification because there is no guaranty of big profit from one coin, even Bitcoin suffer price dip, so the best strategy to make a profit is to diverse, it's up to you how to vary your coin selection but it should be wide to cover ICO and some so called pump and dump coins.
I use diversifications. A lot of price movements these days are manipulated by some traders, which can lead to a loss in a guaranteed trade. So diversify and keep an eye on these manipulators.
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?
The very word implies that these are investment strategies. I understand this as an expansion of the contribution to different currencies, in order to reduce the risk. Investing in one asset, I think not the best option. I begin to study this topic in more detail. Please, tell us, useful literature related to investment. Thanks in advance. I have no doubt that diversification is an appropriate strategy for any responsible investor looking for a way to minimize risks, however, seeing the behavior of the crypto market, where there is a clear dominant (bitcoin) whose behavior has a drastic and direct influence on the behavior of all the other altcoins, I believe that adequate diversification does not mean buying numerous unknown altcoins, but investing in other less volatile investment instruments, such as metals, currencies or stocks.
What metals have you seen on the crypto currency market?
I diversify my portfolio constantly. This is the key to success. Usually 5-7 projects out of 10 in which I invested do not bring any profit, but the remaining projects give such a profit that they cover all my losses.
What do you think about this?
Yes, diversification is very important to avoid a loss. If you hold one coin and it fails you have a complete loss. To avoid this loss you can invest in different ones. And it's also no surprise, that projects with a low marketcap are more likely to fail than big ones. Little ones are more risky. I have no doubt that diversification is an appropriate strategy for any responsible investor looking for a way to minimize risks, however, seeing the behavior of the crypto market, where there is a clear dominant (bitcoin) whose behavior has a drastic and direct influence on the behavior of all the other altcoins, I believe that adequate diversification does not mean buying numerous unknown altcoins, but investing in other less volatile investment instruments, such as metals, currencies or stocks.
What metals have you seen on the crypto currency market?
I diversify my portfolio constantly. This is the key to success. Usually 5-7 projects out of 10 in which I invested do not bring any profit, but the remaining projects give such a profit that they cover all my losses.
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?
No matter which way you would go as long you do see that you will able to benefit or simply you can make profits then you are in a good path. Diversification is always the best not only partitioning on possible profits but also reducing up the risk on getting wrecked on a single coin.Just always remember that not all the times those expectation of yours will be precise. 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?
If I have a good capital, I try to buy at least three different altcoins. But if I have some good coins like bitcoin and ethereum, I try to wait untill a bull season, because this two are very reliable according to me.
I think that diversification helps to stabilize your balance and not go bankrupt completely at the moment. The market is very volatile and so now diversification is not much help, as in my balance still jumps up and down every day pretty much.
Diversification is a good strategy to employ in your Cryptocurrency investment. The rationale behind diversification is that, given the circumstances that there is downtrend in the prices of your coins, not all of your coin will decrease in price at the same time!
Yep I diversify my portfolio in every way! Even when I really needed some cash this year and didnt have other place to pinch, I sold few % from about 10 coins that I have the most, and solve my financial problem. I dont think I will ever let any of them 100% go!
Cryptocurrency market is quite volatile and changes occur constantly. Let's say for example you invest all your money in a particular coin and the coin went down hard that means you have lost all. But when you diversify you tend to manage your risks putting your money into different coi. Is quite advisable
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?
This action is called rebalancing. Of course, you need to do it, it allows you to increase the indicators hold. This is a very important tool for this strategy and it is used by all investors. 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?
I agree more with using a diversification strategy. Many investment experts say that don't trust too much in one type of investment. Blockchain technology is the future, but we have to diversify our investment in at least 10 different types of crypto.
I do not support and do not use diversification. Because I think that it's worth investing only in proven coins that show good results in the market.
One coin can not rise all the time, that is you need to go into some other coins. You should remember that every good pump is followed by the dump, especially on the market that is so unstable nowadays.
I have no doubt that diversification is an appropriate strategy for any responsible investor looking for a way to minimize risks, however, seeing the behavior of the crypto market, where there is a clear dominant (bitcoin) whose behavior has a drastic and direct influence on the behavior of all the other altcoins, I believe that adequate diversification does not mean buying numerous unknown altcoins, but investing in other less volatile investment instruments, such as metals, currencies or stocks.
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