Topic: Do you use diversification? - page 5. (Read 4331 times)
Diversification can save your capital. I think every investor should use this strategy. This is a very important time when the market is falling.
I've been using this effective strategy since the day I started investing in cryptocurrencies. Diversification prevent investors from total loss because they bought some selected coins instead of only one. Cryptocurrencies and tokens had also different time of price uptrends so if one coin fall the other one rises. Even during bear market, the price of some coins are still going up and they can't not easily dragged by declining prices of some leading coins that causes the bearish condition of the market.
If Altcoin could show growth even in a bear market, then it seems to me that it is better to leave it, because when the bull goes on the market, he will be able to bring much more profit!
Not always this is the case , each coin has cycles of growth and fall and you need to correctly identify them , not the fact that the growth now it will grow and bullish , but of course it is better to store them in such a market and wait for the bullish, just be sure to deversify the risks ! For me, usually I trade approx $5k for token or coin that only has potential growth.
if , that token has grow 100% , I will take profit.
Wow, that's really a great ambition. 100% is a huge profit for trading. Normally when my tokens increase 5-10% I will start selling them allif , that token has grow 100% , I will take profit.
For me, usually I trade approx $5k for token or coin that only has potential growth.
if , that token has grow 100% , I will take profit.
if , that token has grow 100% , I will take profit.
Yes. I use diversification but I do not think that you need to have too many coins in your portfolio. The best option is five coins. The maximum number of coins in a portfolio should not be more than 10. You will be difficult to manage a portfolio if it has more than ten coins.
Well, not just five coins. You can get benefit of the benefits of diversification to as much as 30 assets in your portfolio.It depends on your like and dislike. You can have as many as you want to get your portfolio diversified and reduce risk but if you are interested in only five coins, that is completely okay and you can do that. Normally if you are holding the best coins, you do not need high diversification.
If Altcoin could show growth even in a bear market, then it seems to me that it is better to leave it, because when the bull goes on the market, he will be able to bring much more profit!
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?
Not really, for the mean time, I am just focusing on two to three coins that I will going to put my attention into. In that case, I can fully monitor how these coins are going and performing in the market which I can avoid some instances of sudden lost.
Currently most of the major investors are interested in holding more Bitcoin. They worry that if a long-term investment in altcoin is not safe and profitable as Bitcoin if investors wait for a strong growth.
I will make a strategy based on how much my capital is because for me it is very important to have strong coins so that the risk of loss can be minimized but I cannot deny the fact that to get huge profits I must want to take big risks by investing in coins that are very cheap and still weak so that when coins grow we will get many benefits.
so if I have big capital then I will invest in the top coins and then the rest I will invest in coins that are still weak
so if I have big capital then I will invest in the top coins and then the rest I will invest in coins that are still weak
Diversification should be used. I've read some of the comments that say that diversification is an absolutely unnecessary practice and is better without it, but I wonder what is the result? Of course you can only invest in Bitcoin and wait a few until it grows, but it is better to invest also in altcoins, if you want to get even more profit.
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 do diversify once in a while but I am careful at it because the wrong approach to it will keep you stagnant as you may loose the profits earned from another coin investment
Yes, now I prefer to diversify my investments, because in the past I have already received a negative experience how to invest everything in one asset. It is best to invest not only in different cryptocurrencies, but also in different types of assets, for example, in precious metals or real estate.
Of course I still diversify, especially with established cryptocurrencies or top 10 cryptocurrencis .
Diversifying with unknown crypto is a big risk newbies traders shouldn't take. An experienced should know when to trade such coins without risking being dumped on.
Diversifying with unknown crypto is a big risk newbies traders shouldn't take. An experienced should know when to trade such coins without risking being dumped on.
You can never be sure or "know" when to trade without any risk involved whatsoever. As soon as you buy crypto you are entering a highly volatile (risky) market no matter what.
Of course I still diversify, especially with established cryptocurrencies or top 10 cryptocurrencis .
Diversifying with unknown crypto is a big risk newbies traders shouldn't take. An experienced should know when to trade such coins without risking being dumped on.
Diversifying with unknown crypto is a big risk newbies traders shouldn't take. An experienced should know when to trade such coins without risking being dumped on.
Diversification is the best option in investment cause its not a wise thing to put all and everything in one that increases you chances of lossing to be on a safer side adjust to other options and direction
if my strategy, more to wait for prices to be even stronger. not buy again when prices look up, because it could just be a bounce, it could go down again. if it looks strong, it certainly can rise even higher.
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?
Not really, for the mean time, I am just focusing on two to three coins that I will going to put my attention into. In that case, I can fully monitor how these coins are going and performing in the market which I can avoid some instances of sudden lost.
Yes. I use diversification but I do not think that you need to have too many coins in your portfolio. The best option is five coins. The maximum number of coins in a portfolio should not be more than 10. You will be difficult to manage a portfolio if it has more than ten coins.
I personally diversify as this tactic keeps my funds in more stable position than a single currency would be able to provide. You have named some well-known projects and lesser-known which would be under higher pressure if the market is falling down. The ratio should be adjusted by your own approach. Are you willing to risk your money for a possibility of greater profit? This is not for everyone and putting a part into LTC or ETH is not a bad idea at any time. Stick to your plan- do not let your emotions and impulsive behaviour ruin it. Give it some time when things are not following your plan and relax a bit 
. It will probably get better.
. It will probably get better. 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?
Sure, do not keep all your eggs in one basket, diversification is the key. You need to hold low risk, medium and high risk in % you are comfortable with.
However, on the crypto market if BTC grows, most of ALTS are growing as well.
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