Topic: Do you use diversification? - page 34. (Read 4398 times)
I will choose to buy coins when the price is cheap. after that, I will hold it for a while until the price goes up, so I will get the profit. when the prices are going down it would be better if we didn't sell our crypto assets because it would make us get the big loss.
I heard a guy on Youtube say on the ignorant diversify. Since I'm ignorant and have absolutely no idea what any of this is going to do I for sure diversify. It's saved me on quite a few occasions.
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 necessary, just because not all coins will grow as we expect. Maybe it will depend also on the amount of capital, but I think three will be better than two, and two will be better than one. Although everyone can be wrong, but I think diversification is a way to minimize 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?
I don't know most of your holdings but only NEM.I'm diversifying but not of that type. I'm diversifying with coins that are very popular and I'm very confident holding with for long term.
Diversification can be a strength and weakness depends on the 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?
Diversity is a good alternative on a weak market. You have to be creative in order to grow your resources. There is no constant market value in crypto world that is why you need to diversify to keep you moving.
Diversification is the key to a successful business. I do tell people not to put all their eggs in one basket. If you have the opportunity to invest with huge capital, try to split them into many investments so that they bring a stream of cash inflow.
Yes I use diversification. I think it is rigth. It make me stronger.Anyway you have some coins if another coins you loss.
I use diversification because I believe no one crypto has the ability to increase all year round. While one goes up the other could go down. Projects also differ and a breakthrough in one project could be key to becoming successful in crypto.
Diversification of the assets is the right way to make the investment less risky, because with diversification we can minimize the loss which is not a possible thing with the investment on a single asset. Also diversification helps with the trading possibilities and help in compensating loss with one another.
Yes I do use diversification, diversification is a way to get as many good coins as possible, and yes if i am the one, when my coin makes a good gain, I will sell off some part of it and use the proceed to invest in other coins
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?
Even a strong coin go down and weak coins getting a pump, it still depends on the development of the coin and how the community reacts to it, and of course the character of the people behind the coin you are in an advantage if you can follow updates about coin, one example of this is coinfi I always almost sell it because the price is getting nowhere but I'm getting a lot of updates about the project.
Diversification is one of the cardinal rules in investing. Never put all your eggs in one basket. The idea is pretty much self-explanatory. 
I struggle with how much to diversify and how to not over diversify.
Investing in one project and to follow the roadmap, social medias etc... But this way you loose opportunity to follow another nice projects while current project is in the development stage and no gaining any profits. At least this fact you have to consider when you invest in one project only. Another fact is that you should keep in mind, there is a risk that current project can not have success and you will loose all your money. Think about it. Good luck!
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 I will sell them in the suitable price to make the reasonable profit. And put a part of the money away, and then put the rest money to buy in some different coins to make the investment safer.
Best way to become wealthy is to consolidate into fewer investments, but obviously, that is a little riskier; requires a risk/reward analysis. Consolidation to attain wealth, diversification to retain wealth.
So depending on what stage you're at in life, diversification may or may not be the optimal strategy. Given that most people in crypto are young, I believe it's more appropriate for them to consolidate because they have time to overcome the downside. They could find just a few projects they've fully researched and firmly believe in, and invest all allocated crypto funds into those.
Side consideration though...an issue with many young people is that they are typically worse at assessing their risk profile due to lack of experience in investing. So, when consolidating their portfolio and taking on more risk, they tend to buckle under the pressure when things do go poorly, and emotionally fall apart / panic sell / etc.
So depending on what stage you're at in life, diversification may or may not be the optimal strategy. Given that most people in crypto are young, I believe it's more appropriate for them to consolidate because they have time to overcome the downside. They could find just a few projects they've fully researched and firmly believe in, and invest all allocated crypto funds into those.
Side consideration though...an issue with many young people is that they are typically worse at assessing their risk profile due to lack of experience in investing. So, when consolidating their portfolio and taking on more risk, they tend to buckle under the pressure when things do go poorly, and emotionally fall apart / panic sell / etc.
Even in the long run, there is no guarantee that bitcoin will reach $100k or anything. It's #1 right now because it's the only cryptocurrency the average person has heard of, but it's possible something with better technology and less political issues ends up surpassing bitcoin at some point. I think bitcoin's long-term success is quite dependent on the lightning network working. I guess bitcoin could end up being digital gold forever and be worth $1million+ per bitcoin, but I don't personally see that future.
XMR has gone up more in the past month than BTC has. ETH went from $10 to like $360 in a relatively short time span. Do good research and you can invest in stuff that will give you a higher ROI.
XMR has gone up more in the past month than BTC has. ETH went from $10 to like $360 in a relatively short time span. Do good research and you can invest in stuff that will give you a higher ROI.
you shouldn't keep everything in one coin. so more likely to lose everything. learn different coins. and those that are more reliable buy. here at me it turned out that now the most part in the same coin and must wait for the growth.
Yeah sure diversification is very good in crypto currency, it is not good to hold only one particular all the time, when the token you are holding makes some gain, it is good for you to take some profit out and invest in another good coin.
Diversification is key to any investment. It is commonly said... You don't put all your eggs in one basket and thats applicable even in the crypto space. you dont put in all your funds in one coin/token simply because you trust that coin so much. Something may come up and cause that project to fail or make it start suffering while other projects keeps flourishing. Always diversify.
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