Topic: Does crypto help to diversify your investment portfolio? - page 2. (Read 360 times)
Even though I'm not saying it often just concentraing all your money alone in crypto is something a careless person would do. That's why I also have money in traditional investments such as stocks which I also have diversified my money onto different sectors/industries as well. The key here is to diversify your money but at the same time its not too diversified that you aren't maximizing your money that's why when I buy and hold assets I only focus on to 2 to 3 stocks and 1 to 2 cryptos at a time.
Investing in cryptocurrencies is more risky than other types of investment but the liquidity of the investments is quite good if investing in the Top 30 altcoin.
Probably below XRP or USDT, the liquidity is actually bad. It won't even need a really wealthy person to move the needle significantly. Also, not to mention that investing in the top 30 altcoins is a bad idea in the first place. Investing in the top 30 cryptocurrencies is far far far different from investing in the top 30 stocks.
Investing in cryptocurrencies is more risky than other types of investment but the liquidity of the investments is quite good if investing in the Top 30 altcoin. Investors are sure they will invest part of their money in this market but I think it will not be higher than other markets. This is a new market for all investors.
I mean, I personally don't think that having cryptocurrencies(probably nothing other than btc and eth) in your investment portfolio is absolutely 100% necessary, but I definitely highly suggest having a small percentage of BTC on anyone's portfolio. Just for the "what if" factor. Because let's be real here, bitcoin isn't guaranteed to reach millions in price(though I'm betting on it).
Totally) I just keep up to date, read a lot of reviews, choose which one is worth of investing/
Somehow crypto diversifies our investment portfolio. If a person is into cryptocurrency and investment, he will have tons of options to choose from, ranging from shit altcoins to valuable ones. Aside from that adding cryptocurrency to our investment portfolio is a diversification itself.
But there are many people who buy a single coin and wait for it to pump and gain profit. Most of the time, the coins goes down and their whole portfolio is down. It is always said "Not to keep your all eggs in one basket" and this is particularly true for cypto currencies. If you have many coins, even if you get a loss from few, you may still get profits from the others.
In my case, yes.
I think it's never good to invest money in just one type of investment, it's too risky.
Of course I believe in bitcoin and crypto but I still want to have a much wider portfolio of investments and that's why I invest in both pension and mutual funds and life insurance.
This way I feel more secure and at peace, in a way.
I expect the most from bitcoin but I'm ready to wait and I'm here for the long term.
I think it's never good to invest money in just one type of investment, it's too risky.
Of course I believe in bitcoin and crypto but I still want to have a much wider portfolio of investments and that's why I invest in both pension and mutual funds and life insurance.
This way I feel more secure and at peace, in a way.
I expect the most from bitcoin but I'm ready to wait and I'm here for the long term.
that is the advice that i have been giving others and also following myself! in fact each time a newbie mentions "portfolio" and "diversification" while saying their portfolio only consists of bitcoin and two dozen altcoins i tell them they have NOT diversified at all. and real diversification is when you have traditional assets and then buy bitcoin alongside them to benefit from the huge profit that bitcoin gives you while still having one leg in the traditional market and enjoy the less risk that they give you.
and of course the main reason is that there isn't any correlation between bitcoin and any of the other markets whatsoever.
and of course the main reason is that there isn't any correlation between bitcoin and any of the other markets whatsoever.
Somehow crypto diversifies our investment portfolio. If a person is into cryptocurrency and investment, he will have tons of options to choose from, ranging from shit altcoins to valuable ones. Aside from that adding cryptocurrency to our investment portfolio is a diversification itself.
Instead if diversity it would add an element that no one would like trust me because not everyone is open to these things , companies involving the IT sector and the software sector is often impressed by these things , but other sectors don't appreciate it much, therefore you should understand that adding this to your resume could spark both negative and positive things .
Hopefully the company appreciates this .
Hopefully the company appreciates this .
I just posted an article on Medium to shed light upon diversification into crypto for traditional investors.
https://medium.com/velvet-capital/want-to-diversify-your-portfolio-adding-some-crypto-might-help-32c62eb402e?source=friends_link&sk=f6265fc28cad39fb0a86095e6d3cfc8a
Curious to hear your thoughts. Is the low correlation with traditional assets going to be persistent? What do you think?
https://medium.com/velvet-capital/want-to-diversify-your-portfolio-adding-some-crypto-might-help-32c62eb402e?source=friends_link&sk=f6265fc28cad39fb0a86095e6d3cfc8a
Curious to hear your thoughts. Is the low correlation with traditional assets going to be persistent? What do you think?
Jump to: