Topic: Hot take: Your crypto portfolio should have more than just Bitcoin. - page 2. (Read 654 times)

Excellent example, but as I already said, my two cents in this post were for individuals like me who are interested in maximizing their profits with short-term trades targeting altcoins that are ready to break out. I never said we should liquidate our Bitcoins (Anybody who's not keeping most of their crypto money in Bitcoin is going to lose in the long term).

I'm sure - and I've learned this with experience - that we can optimize profits in crypto without having to give up on Bitcoin. I'll always keep much of my money in Bitcoin but I won't say no to making quicker profits if I know how to do that.

Diversification is always that recommended but since due to lack of financial capacity then this is where we do miss out opportunities on doing so. If you do want on less risk then Bitcoin would be your best choice
but its not 100% guaranteed that it would be completely safe in terms of crypto investment.We dont know on what the future holds and on the things that would happen.
This is why other people would really be that focusing when it comes to other alternatives such as on choosing some altcoins which does have potential. You would really be that
needing that taking more risks for you to be able to have that kind of chance to earn more but of course diversification would really be needing that kind of financial capacity
which not all would really be that capable on doing so.

You've pointed out something very interesting with the mention of Bitcoin's stability in daily trading. It's always been a long-term investment rather than a day trader's go-to asset.

I'd always keep most of my money in Bitcoin. It has always been - and always will be - my primary asset.

I also agree that altcoins are definitely riskier, but I made this post to talk to individuals like me who have felt we can do more while we wait for Bitcoin to take us to the promised land.

I understand keeping up with the incessant ups and downs of multiple coins to fruitfully diversify and make higher profits with short-term trades is extremely complicated but - with modern technology - I'm sure we can find a solution to this problem. Don't you agree?

I agree with your estimation and advice. I came to the same conclusions after spending years investigating the ins and outs of the crypto world.

With all of my experience, and after rigorous R&D on which I spent considerable resources, I was able to build a system that's now giving me and my community of 200+ small investors higher yields than Bitcoin.

So I know for a fact that diversification works - if done correctly.

Since Bitcoin is the first and most well-known cryptocurrency, it feels safe and familiar.

Altcoin diversification spreads risk and allows for innovative enterprises, especially in DeFi. More agile and niche-focused than Bitcoin, these initiatives can generate considerable short-term benefits. Given altcoins' less established origins and often speculative enthusiasm, larger potential rewards come with higher risk.

The advice to Bitcoin enthusiasts to slowly expand is rational and forward-thinking. However, altcoin investments require rigorous investigation and risk evaluation. Diversification is smart, but it should be done deliberately, taking into account project viability, market trends, and personal investment goals.

I bought some altcoins in the past, sometimes it turn out to be a good investment and other times no, it wasn't good at all. If you want to buy some altcoins I would suggest to buy something that is somehow reliable like ETH or BNB just to mention a couple, for sure I wouldn't buy Shiba or other meme coins. Anyway for me the easiest thing to simply stick with bitcoin, if I have some extra money I prefer to buy more BTC rather than any other altcoin.

Why should you diversify into shitcoins to make a profit? I have done that before and these shitcoins has cost me a lot of losses. I handle some "good" Alt coins like Bitcoin now, by buying low and selling high, but I am very picky on what Alt coins I am buying.

I started in Crypto currencies when there were only Bitcoin and a hand full of Alt coins..... now there are 1000s of shitcoins out there trying to emulate Bitcoin's success. 

If a person, as the op mentions, wants to make short-term gains, I agree that something more than Bitcoin is probably required. One might find a stablecoin useful for a trading pair with Bitcoin, for example. Also, while the op says that Bitcoin's price fluctuates a lot short-term, I actually think it probably doesn't fluctuate enough to profit from daily fluctuations. Fluctuations are good for trading, and Bitcoin can stay fairly stable for a while, unlike some altcoins.
That being said, I don't think that diversification reduces the overall risk. While it seems reasonable in theory, I think it's wrong in practice, simply because altcoins are riskier than Bitcoin, so diluting Bitcoin with altcoins makes the overall risk higher.

No, I don't think that we're going to be following that hot take and in my opinion, the diversification of crypto portfolio is not the same thing as diversifying your investment portfolio of traditional investments like real estate, stocks and bonds. There's a lot of shitcoins out there that's aimed at gullible investors trying to get in into something that they think is going to have the same success as bitcoin and so they buy these shitcoins with the justification that it's also so they can diversify their crypto portfolio, it's not going to be a good thing to do that and you're better off putting all of your money in bitcoin because bitcoin will guarantee you a profit although it will take a long while before it can do that but that waiting will be worth it. Also, if you are a newbie to crypto then you're better off just buying bitcoin before thinking of venturing into other altcoins, you don't want your first experience in crypto investing to be a bad one, at the least with bitcoin you are going to be fine that is if you can hold out and wait for the price to go up and for you to get a big profit.

In my personal assessment, it is true that bitcoin as an investment is really tested in the long term. Besides, it's only good in the long term, in my observation, if you have a hold of at least 1 bitcoin. Because if it's less than 0.1 BTC, I don't think it's good to do it anymore.

This is if you want a high income in the crypto business. That's why there are alternative coins in the market like BnB, Ethereum, and others so that we can experience better profit than Bitcoin, because in Bitcoin the profit can be x5, but in altcoins I think it can be more than 10x, just in my opinion.

It is true that a crypto portfolio should contain more than just Bitcoins but the market should be analyzed thoroughly before investing in the currencies. Not all currencies are good bitcoin is the top currency in the crypto market and therefore it is recommended to invest in this currency. Among the altcoins Ethereum BNB is the best. Other currencies involve more risk and the upside is much less guaranteed. Scams most of the time, so it is better to hold long term investment in bitcoin to keep a good balance of investment market.

this is the best advice

usually you’d invest on different coins for different purposes be it for long-term or for short-term it’s advisable to invest on the top cryptocurrencies such as btc and eth as the biggest part of your portfolio, invest on different types of tokens like DeFi and stablecoins and then invest the rest on some altcoins that seem to have good potential even if it’s a little high-risk

You are trying to do an impossible task, since in order to increase your ROI you have to increase the risks you take, and trading altcoins while potentially more profitable cannot reduce the risks you take, besides by investing more money on the same market you are not really diversifying your investments, if you want to do this then you need to invest in assets that are not part of this market, a decision which could indeed lower your risk but that will not increase your ROI, as we are getting closer to the halving by the day and more profits will come during the next months and years.

I have tried this before and ended of wasting money on shitcoins. Their marketing is usually good with lots of hype but in the end, it is usually from one excuses to the other. The founders of most of these other coins are holding a good portion of their wealth in Bitcoin, so why do you suggest I diversify my investment when Bitcoin is doing pretty better than most if the other coins and there is the assurance that Bitcoin is not going to collapse like FTX and LUNA. Ripple escaped collapse by winning their court case, that would have been another disaster to their holders and this to me is too big a risk to take. So, for now, I rather stick with Bitcoin.

You are not reducing risk by diversification of your portfolio especially when you are investing in many altcoins. You are increasing the risks instead because then you have many more things to worry about.  You do not need to over diversify your portfolio, the purpose of investment is for profit making, and you can make profit still if you do not invest in so many coins. Invest very well in bitcoins, then you can choose to consider a few other altcoins with good records to invest in also.

By having other cryptocurrencies in your portfolio you are simply exposing yourself to more risk, you can have Bitcoin and rely only on Bitcoin, it's safer than having other coins in your crypto wallets, but even if one have to do it, they must be willing to put in the extra work, other coins don't just expose you to more risks, they always need extra lessons and monitoring.

Altcoins are stressful to own and lock away in your wallet without monitoring it's update on twitter or their telegram group, they may decide to move to their main net anytime or switch their smart contract, unlike Bitcoin where you can lock away without looking back for years you can't do that with altcoins, you are simply trying to lose your assets if you do..

My alt portfolio consists of two altcoins that just out of nowhere decided to change smart contract, I don't know this until it's almost too late, and thankful to myself I visited twitter that day, and the next day is the last day you must swap your old tokens for new, if not I would have ended up with worthless tokens.

Other digital assets are too stressful to keep, there are also times where you need to exit the market because of a bad rumour on a project, if you are slow about it the coin will dump on you, like what happened with GALA, you always have to be on guide with other altcoins.

OP, as a newbie I think your major concern at this stage in this forum is to learn, or are you telling us that you are now an advisor, when you talk about diversification, which of these altcoins is better than bitcoin, the answer is none, Bitcoin price practically controls the price of this altcoin, when Bitcoin appreciate in price the so-called altcoin appreciates a bit, so I don't think diversifying from something better to investment that's less better is a good idea, the best option if we most diversify for me is real estate, real estate is an asset that can give profit in a short while and it has been proven to be the major asset that can compete with bitcoin, OP, if you must post this thread it will be more appreciated in altcoin.

My question to OP is as follows. If in bear markets altcoins lose more than bitcoin and in bull markets follow bitcoin, with possible higher returns, you'd have to be able to perfectly identify a trend switch to profit, but even if you do it, there's a catch.

Remember how the SEC said that bitcoin is a commodity and most altcoins are securities?
What would happen if you bought an altcoin and next day it got sued by the SEC? That would mean an instant loss.
What would happen if you bought an altcoin and it got delisted like BCH and some others were? Instant loss.
What would happen if the creator decided to abandon the project like it happened with LTC and many other coins?

Let's talk about that LTC for a moment. It went through a 2 consecutive bull markets just like bitcoin. One in 2017-18 and one in 2020-21 and it barely grew. Bitcoin reached 20000 and then in the next bull market almost 70000 and litecoin went from 200 to 250. If you bought LTC in 2018 you had to wait 5 years to make 25% profit.

With altcoins you invest in companies and leaders. Buying ETH you invest in Vitalik, BCH you invest in Roger Ver, buying BSV you invest in CSW, buying Luna you invested in Do Kwon...

Thanks for your advice but I'll take my bitcoin over any altcoin you offer.

Whether shortterm or longterm, I still have most of my faith in bitcoin, but of course it's not always all about bitcoin. But I feel that the OP's reasons are not convincing enough when investments are all about specific plans, not just lucky bets. The balance between risk/potential in investment is a decisive factor in the ability to complete the plan, and in the crypto market, we all know that Bitcoin is a more balanced product than anything else, with volatility creating excitement or gloom in the market, but the fact that bitcoin dominates almost everything in the market is what makes it indispensable for any crypto investment.

Maybe someone says that bitcoin is too expensive for them to buy and expects high price increases to take control, the element of greed from the starting point will lead them to other risky choices, and of course if they don't have enough skill + luck, they will only be tools in this market, and it is difficult to find any opportunities from Bitcoin.

Diversification is turning one asset into another, like owning some bonds, some stocks, some real estate and some gold.
You do not diversify withing the same brand where a sudivision of a product relies on that product. It's like telling someone who owns a part of Tesla to invest in Spacex to diversify. That's still Musk you're betting on. You're not diversifying.
Altcoins depend on bitcoin. When bitcoin crashes so do altcoins. By investing in them you're putting yourself at more risk to potentially get more rewards, but remember that bitcoin will not go to 0 (or near 0), but shitcoins will, like FTT, Luna, and many others.


So in other words, turn the risk and reward knobs all the way up and see what happens. You're advising someone who holds gold to go into stocks because gold is boring and someone who is in stocks to go into penny stocks, because normal stocks offer not enough volatility.