Topic: Dont invest all your Bitcoin in 1 source - page 2. (Read 545 times)

Yeah, trust is also one of the thing you must to do in investment. But the thing is for you to have a stable thing to have a stable  i Ageneto get your needs and want that can be used to have a profit for yout famity.

It is not always necessary to stick to one especially in crypo market, I agree that we need to explore things out. Don't just focus in a single reference, it is also risky just like bank account, don't just depend on a single bank as if that bank suddenly fire out, there is just a minimum amount that you can recover so if you have millions there, you cannot get it all.

I agree, that way if an exchange gets hacked it doesn't hurt too bad!

'Dont invest all your Bitcoin in 1 source' says the title.
Why should I invest my bitcoin at all??

I agree completely with diversification. So having other coins beside bitcoin is a smart thing to do in my opinion.
But investing what already is an investment, that is something I can not recommend to do.

you must have your strategy of your portfolio. this is my strategy .


5% max invest altcoin (if you invest altcoin like this 5% on xrp, 5% on dash 5% on eth 5% on etc, 5% on BTS, 5% nxt, 5% xlm, 5% Btg)
25% on btc
25% on fiat currency

so if you want invest like eth,xrp,dash,etc you must use 5% of your capital. do not invest more than 5% of your capital.

why btc dont swith to altcoin? if at any time there is a very sharp rise of btc. then the BTC / ALTCOIN payment will decrease very sharply. here is the right time to buy altcoin from the rest of btc you have ..

why i have 25% fiat currency.  if the btc price drops badly so market will dump everything. this is perfect timing to buy btc or altcoin. usually btc drop for 1-6 days.

I have to disagree with you. There is no point in diversifying your risk by investing in more altcoins. Because if Bitcoin goes down, then the alts will also become worthless. If you want to diversify your portfolio, then invest in some other asset, such as real estate, equities, or mutual funds.

I definitely agree, that is one of the rules of thumb in investment. Don't put everything you have in one basket, this can mitigate the risks you are taking. Spread your investments.

Yeah... It should not just focus on 1 coin. As you said we will not experience much losses if not just focus on 1 coin. At least we have to have 5 coins or more in the portfolio, so when we fail in 1 coin (hopefully not happen) then the failure can be helped with other coin. In addition, the funds for investment also becomes lighter. Another advantage is when we are having financial problems we can sell one of the coins we have.

Indeed, it is not reasonable to invest all your money in one token.
The people who make money in the cryptocurrency market are hold it for a long time, invest all your money in one token is hard to hold it for a long time, because you're going to focus on the change in the price of the token.

It's only right that you do not invest all your money on an investment site just because it might be a scam and you lose nothing left over and just wasted everything you earn. A few days after Dimon’s comments, the value of bitcoin plunged when the Chinese authorities announced a crackdown on it. It has been an eventful month, even in the context of a currency that is less than a decade old.

That's true, once you invested all your bitcoin in one source that is more risky than to those who invested their bitcoin in different sources. Once your invested will go down, all your investment will also drop.

In fact this is just multiplying your resources of profit, yes altcoins follows bitcoin and if you really want to fully maximize that you can actually do it. I agree that we must consider to invest outside cryptomarket  which is less risk, invest on the things that you fully understand otherwise you'll loose money.

I remember that there were only three altcoins that had a positive growth last collapse.
For me these three coins were totally new, so I assume their growth was due to their coin being added on a popular exchange.
It could have a different reason but it's a reason why a lot of altcoins suddenly make big growths.
But to make my point, 3 out 100 coins is just a gamble.

Sure!! like all business, never put all your eggs in one basket. In cryptocurrency there are diverse ways to invest your bitcoin. Trading, investing, margin trading etc. With all these options you don't have to invest in one source. 

Well, I can't say that I completely disagree to what you said. The trend shows that altcoins are also following the same trend as bitcoin. When bitcoin goes down, majority of the alts go down as well. But only the majority of alts, not all. In real investment world, we have concept of "contra fund" which literally means "Contradictory fund". This particular fund is created to make profit in the falling market by buying those stocks/assets who usually goes up when the market is red. If you have tracked the stock market closely, you will see that when a stock market enters red zone, Gold and Silver prices goes up because investors then try to hedge their position by buying these precious metals. This is the same technique used by the contra funds.

I have been tracking the crypto market since a long time now and I have seen few such coins do exist in the market. When the crypto market enters red zone, these coins goes up. However, I am not getting a very clear picture because of the number of altcoins we have but I am trying to get to a definite point.

I encourage the OP and you to track for the same and probably we will be able to point out some definite alts which is showing such kind of behavior. I am not able to devote much time to these because of my jobs and other commitments, but if we can find these, it can be proved as a very nice hedging for us.

But whatever you said about diversification, I too agree that one should not invest in coins only to safeguard their positions. Real world investment like Gold, Bonds, bank deposits are good tools to have as an investor which can support us in difficult times.

I agree, we do not need to invest all bitcoin funds for a single source, even though the investment value keeps increasing every year, maybe you can see other investments like gold

Diversification is good, but buying other alts is not diversification!

A diversified portfolio is one that doesn't move in syncronisation (the idea is that you don't lose everything because everything moved down at the same time). Alts tend to move with bitcoin, so they arn't ideal for diversification.

If you want to diversify, sell some coins and put money in land, or gold or bonds.

I don't agree with you, Bitcoin has shown for years to be very reliable.
Also altcoins tend to follow the price of Bitcoin but on a decrease seem to be decreasing more than Bitcoin itself.
Besides that, what uses have other crypto currencies that Bitcoin hasn't?

I think this common knowledge.. ''Don't put all your eggs in one basket''. The money you use to invest in bitcoin should not be the money you use for your basic needs. It should be what is left over or part of savings but not all of it. Anything can happen to bitcoin. Better safe than sorry.

Yeah! You are right. It's harmful to put your eggs in one basket. The best way to invest in Digital currency is not to invest in single bitcoin but make your investment in various crypto coins. it will reduce your chance of loss. If the value of one coin is decreasing, the other coins may have a lift so as to prevent you from loss or maybe you can earn benefit from all your coins.