Topic: Do you use diversification? - page 30. (Read 4398 times)
I find your investment perspective very correct. Should sell as soon as cryptos are profitable and reinvest in many different cryptos and cryptos are at low prices. And the cryptos you listed are very good to invest in at a time when market rates are declining.
Expanding is one of the demonstrated methods for making due in the crypto advertise, it is anything but a simple thing yet spreading your dangers equitably over various crypto coins shields you from influencing monstrous misfortunes when a portion of the coins to plunge in esteem. Not every one of them will lose an incentive over the long haul, in the meantime, a portion of the coins may do well than the others procuring you more returns over the long haul
I use diversification because I understand that investing in one coin all the money is very risky and not profitable so I diversify into a lot of top coins.
Absolutely. Diversification lowers the risk factor by a huge margin compared to investing all of the money in a single project. But this risk also comes with the according rewards. As in there are chances that by diversification, there are some projects which performs exceptionally well and some fail. Which kind of lowers the overall profit which you could've made by investing in that one project.
Surely, it is very useful advise not only for crypto business, it is also very good advise for common life questions. diversification is the same for me as the sentence - Dont put all eggs in one basket))
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?
Diversification is quite simple in its definition but is very to implement it. Diversification is definitely needed for succeeding in this market, but it should be done wisely. You just cannot invest your amount in anything you come across only for the sake of diversification. You should do proper research about the coin or project before investing it. It is not easy to diversify the investments.
I commonly will use the diversification. In crypto, many things can happen. Therefore, to face all possibilities, in my opinion, diversifying the coins is the right choice to do. I will diversify my coins which are for trading, long-investing, and also some parts for short investment. So, I will diversify some coins although they are cheap, middle, and high price.
Diversification only decreases your chance of complete elimination in the event a coin collapses. It is good when you get a cluster of high probability trades at once. diversification is important and yes I do diversify.
Diversification of its risks is mandatory for all those who are engaged in investment. I personally hold 17 coins and still have 10 tokens of different projects.
Yes, I think diversification can reduce risk. If you invest all your money in a cryptocurrency, it is very dangerous. If you die, you may lose all your money, so diversification is a very good investment. Choice, but also need to invest carefully.
No matter where you invest, diversification is the key factor.
You cannot rely on a single coin because of the volatility. You really need to limit your risk by investing in multiple coins because that would minimize your risk.
If one coin fails to perform, then the other one will make up for it.
You cannot rely on a single coin because of the volatility. You really need to limit your risk by investing in multiple coins because that would minimize your risk.
If one coin fails to perform, then the other one will make up for it.
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?
From what you said and knowing how well it is good to always diversify and not keep all your eggs in one basket, I will also say that it is better to leave and hold a strong asset because it will become great in future as crypto grows rather than buying a weak one that might likely not be able to survive the crypto market.Yup. I would add that if you believe in the asset you hold, there's nothing wrong with doing a little more gambling and putting more into that asset. Too diverse can sometimes mean less profit because of less risk taken..
Diversification is a must in any investment really, you shouldn't put all your eggs in one basket.
This doesn't mean that you should spend your money everywhere without doing any research though. The projects must be rock solid with a good roadmap and a strong team otherwise It's not different then investing everything you have in one alt.
This doesn't mean that you should spend your money everywhere without doing any research though. The projects must be rock solid with a good roadmap and a strong team otherwise It's not different then investing everything you have in one alt.
True but I find that too many people here tend to over diversify their investments with dozens to hundreds of coins which is not a good idea
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?
From what you said and knowing how well it is good to always diversify and not keep all your eggs in one basket, I will also say that it is better to leave and hold a strong asset because it will become great in future as crypto grows rather than buying a weak one that might likely not be able to survive the crypto market. 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?
Yes we need to diversify our holding but we need also to select the top ten altcoin which I think it's have a bright future, so that in case if there's a dump of one of our holding coin, we can avoid a huge looses, and we can recover quickly because of the remaining coin in our wallet.
Of course, diversification is the primary factor in encryption investment. This can effectively avoid risks and allow investment funds to fully play their role. Remember that diversification is not decentralized and cannot be confused.
I think diversification is a very good option because it reduces investment risk and maybe you can get more profit. Of course, it is very important to choose a good cryptocurrency. Don't just invest in some cryptic currencies that are very tempting. Prudent investment will make you more secure.
I always said and govrju all people! that one should never keep eggs in one basket! it is always necessary to divide your capital into different sources of income, as well as to divide into different crypto coins, projects and funds! this is the main rule of any investor!
Even the best traders are not always right. According to statistics, if you have 54% of successful trades, you are quite a talented trader. I'm not too keen on risking more then i should.
I think too much greed leads us to loss. if you are in some good profit sell them and buy some other altcoin with potential of growth or at least sell 50% of your holding. and don't get emotionally attach with some altcoin
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