Topic: Hot take: Your crypto portfolio should have more than just Bitcoin. - page 4. (Read 664 times)

I think that diversifying your investments is a smart thing to do, however that does not automatically mean that you should invest in altcoins. At most you can claim to say that it is a smart decision to consider altcoins as further blockchain investments.

I however think that your blockchain investment portfolio only really needs Bitcoin and maybe, just maybe Ethereum or one/two of the other top 3 defi coins at the moment. But that is as far as my portfolio goes.

Not everything needs to be about cryptocurrency.

DOGE is not even a project anymore. It is abandoned. Besides the obvious (BTC), I have XMR for privacy. Anything else can be exchanged when needed.

Not a hot take, it's something that's known here and there in the crypto space.

The phrase "don't put all your eggs in one basket" has been thrown off here and there already that it already grew a life of its own in this industry, and so I don't think telling people to diversify their portfolio is a hot take per se, especially when the whole industry's been doing it already. But who cares? Invest on coins you have most confidence with. Don't let anyone tell you what to do with your money unless you trust them with all your life and money. It's your crypto, your savings, and your future on the line, grow a spine and do your own research, earn your own badges and learn things your own way, even if the path towards that future leads you into only investing in bitcoin.

Diversifying your investment from Bitcoin to a mix of both Bitcoin and Altcoin may not be the prudent step for long term as Altcoin can give you short term gains as it's highly volatile and lately we have seen how reputed products Altcoins and Exchanges have pulled the greatest scam and disrupt which has happened in Crypto world. There was a time to invest into Altcoins those were during 2017 and pre 2020 as they achieved huge success and then dumped hard but the new coins which are getting launched now don't withstand the market and falls flat on the day of listing itself, or don't make it to market.

It would be a better option if we hold or trade 10% to 20% maximum Altcoin in our portfolio and rest should be Bitcoin itself. We can play around with some top altcoins like ETH for active trades where you will be monitoring the market unto you take profit.

You mustn't trade Bitcoin before you can realize profit. You can make profit by simply HODLing Bitcoin.


This is actually not true. On the contrary, by diversifying your portfolio you expose yourself to more risk. Bitcoin is a sure bet, it has a proven track record, so when you buy, hodl and sell at the right time, you're guaranteed of making profit from your investment. Unlike, altcoins that are so many and in the course of diversifying your portfolio, you might end up committing your funds to a fake project and you will lose your funds.


It's just a handful of them that have use cases. The crypto space is flooded with many shitting coins and some persons have chosen to restrict themselves to Bitcoin because they don't want to make mistake.

Honestly OP, after much lived experience in the crypto space (just a few days from 10 years since I first got into it!!) I can say nah you really shouldn't.

In the past ten years basically every mistake I made was trading with my bitcoin, deciding to diversify with some of my bitcoin into altcoins, selling my bitcoin, not continually buying bitcoin, or messing around with altcoins.

Ethereum is definitely something worth having as it basically represents all of Crypto (Crypto being different than Bitcoin). And by staking ETH you can make some income.

But the altcoins in general are extremely risky and you never know when will go down or up or stay down permanently. But they all go toward zero against Bitcoin long term. Sure its nice during an altcoin season if you make a lot of gains, but those gains will never stay long term.

For people who want to make short term money there is always trading. Even here I'd recommend just trading Bitcoin and Ethereum. Altcoins can offer much more gains in trading but then when the altcoin you're in plummets while Bitcoin and Ethereum keep going up and you have to either take heavy losses or wait on the trade for months while BTC and ETH keep gaining that's a sucky position to be in.


So more realistic hot take:

Be 100% Bitcoin, or split between majority bitcoin - minority ether. Generally stay away from alts unless your investment strategy is based on being lucky, which is never a good strategy, cuz it may give you some short term outsized wins but generally long term losses, or at least losses against what you could have made with bitcoin or btc/eth only.

I'm glad you agree.

I too think having a diversified portfolio is a good idea but too much diversification will get you nowhere. I think it is probably a good idea to own 4-5 coins in a crypto portfolio. Having more is kind of pointless. How many good projects are there anyway? Only a few. BTC, ETH, XMR, LTC and DOGE for me. BTC and ETH should be in your portfolio without a doubt but the others may change. Either way owning more than 5 different crypto will increase your chances of catching a shitcoin and shitcoins are the enemy of our portfolios. Imagine btc going full bull but your portfolio isn't going anywhere because the shitcoin you have is taking a nose dive. Nobody needs that crap. Safety first, gains later.

If you want to gamble you can always create another side-portfolio and put your shitcoins there but never ever mix it with your main stash because these shitcoins will absolutely infect your main dudes. You don't want the infection spread. The shitcoin infection needs to be contained. Contained in a shitcoin portfolio. Rule #1

By investing in altcoins, you are not diversifying your investments because all of this category of assets is affected by the price of Bitcoin and is exposed to the same influences that make the price of Bitcoin increase or decrease. Therefore, you increase the possibility of being exposed to losses.
Some exceptions to this rule:
Stable currencies: If you intend to trade, it may be a good option to buy more Bitcoin, but do not keep these for a long period.
Privacy coins: buy those coins will have value in the future, but Bitcoin’s performance is better. Therefore, if you are looking for the best high-risk asset for the next three months, Bitcoin is the best.

Yes, it's true that most altcoins can be very volatile, but same way is such volatility likely to be either in profit or losses,  because most times, if you are unlucky to buy an altcoin, you may end up losing all your funds if it's value drastically fall to zero, and same way are you likely to make massive profit if it's value drastically skyrocket in price. Henceforth, that is why to me, I always see altcoin investment as another form of gambling, at which you should invest only an amount you can always afford to lose in an altcoin. Just as same way Bitcoin is the best alternative for investing our future funds instead of leaving in been kept in the bank who's value likely to deprecate with time.

So in a nutshell, altcoin has a high volatility whereby you are likely to make huge profit or lose within a short while, unlike Bitcoin which has a slow volatile nature.

I highly doubt that diversifying on different altcoins aside from Bitcoin will reduce risk since altcoins is more volatile than Bitcoin if we view the percentage of price change and not the value itself.

You can suffer a massive 50% loss on altcoins in just a day which you will not experience on Bitcoin. You can always use a leverage trading if you want to increase your profitability in short term instead of diversifying in altcoins that is more risky due to volatility.

Shielding ourselves from crypto volatility is tricky.  Diversifying into traditional assets like stocks and bonds can help smooth out some ups and downs.  But leaning into more volatile stuff like altcoins instead? I don't think so!  They can totally make bank - some altcoins go supernova.  But their swings are insane too.  And many are straight gambling versus more solid choices like Bitcoin and  so i don't think loading up on altcoins shields from volatility... probably makes it worse.  But hey, with great risk can come great reward right? Just don't bet the house on the next doggie coin or whatever.

Oh, these newbie experts.
Before you make investment recommendations, could you talk about your experience as an BTC-investor and reveal some details about the contents of your investment portfolio. It would be useful for BTC-enthusiasts to know which altcoins you have included for diversification purposes. And also, it would be good if you tell us about the short-term profits you received on altcoins. In our area, before teaching someone, it is customary to demonstrate by personal example what you teach others.

I can say this.
Almost every altcoin I owned turned out to be crap. My example turned out to be negative, for the most part. Therefore, based on personal experience, I would voice the opposite recommendation - not to connect it with altcoins. So, which of the recommendations is the most correct? Yours or mine?

I was about saying how will secure your funds by accumulating Alticoins as portfolio diversification but I saw you pointed out short term gains that’s people looking to get rich quick in short time, yes Alticoins offers that but it shouldn’t be regarded as investment but gambling because the way they go up is the same way they could crash down.


The recent bitcoin price changes disagree that bitcoin is very volatile even though that’s how it is said to be. But bitcoin is the best less volatile cryptocurrency out there bar stablecoins. So since match bitcoin price has be revolving round $25k to $35k, os it doesn’t fluctuate wildly as you said, it is the attribute of Alticoins.


You’re not reducing any risk mostly that of losing when you accumulate alticoins, just have you have said they are very volatile so how do they reduce risk when they can fall just any time. I get they can give you huge returns on short time scale but at what risky.


If you’re looking for an investment stay with bitcoin and add other investments assets Like gold, stock or invest in real estate as portfolio diversification, stay away from risky investments like Alticoins. But if you are in for get rich quick scheme then Alticoin is your bus top

OP, this section should only discuss Bitcoin  , I know you are trying to compare but I'm sure it will suit the Altcoin section.

For the diversification and Volatility, I would like say just that, by only having Bitcoin you are more secure in the crypto industry, with alts it's not at all reliability and risk management it will be only a more risky scenario. Let me explain Bitcoin is considered the most reliable one, when you mention that volatility volatility is not only based on the market price an asset will be considered more asset it lacks transparency and with a maximum of the alts you'll face transparency or supply control issues.

Bitcoin is far more reliable, when it comes to diversification it is a good thing for better financial planning and asset management but when you are only in alts with a diversified portfolio you are in a reliable scenario, with Bitcoin if you only hold Bitcoins, the risks in more controlled range, when we look on the long scale.

The hype and recent market price appreciation ne'er decide the reliability, but History also does, of the narrative, potential does, sentiments does, adoption rate does, utility does, transparency does, decentralization does, the community does and Regulation does.

In the realm of decentralization, transparency, community engagement, narrative strength, widespread adoption, regulatory compliance, and overall potential, Bitcoin stands unrivaled. It outshines any other asset class when considering these crucial aspects collectively. There's hardly a contender that can match Bitcoin's prowess in these key dimensions.

By investing in altcoins, it can increase the potential profit you are going to make, in case you pick the right altcoins which are going to perform awesomely on the next bull run, however, in no ways you reduce risks when investing in altcoins. It's quite the opposite, you totally increase the risks you are taking in order to raise the profitability chance of your investment, because as you said, altcoins are much more volatile than Bitcoin (in every directions, upside and down).

And there are no chances an altcoin performs well, while Bitcoin performs poorly. Keep in mind Bitcoin is the cryptocurrency which drives this market in every directions, and altcoins just follow its movement or tendency. If you are looking for safety when investing in crypto, you should go all into Bitcoin.

Let me explain. When I say that your crypto portfolio should have more than just Bitcoin, I'm addressing Bitcoin enthusiasts who want to make short-term gains while staying invested in Bitcoin as their primary asset.

Here are a few reasons why:

• Bitcoin is a volatile asset, and its price can fluctuate wildly in the short term. This can make it difficult to generate consistent profits by trading Bitcoin alone.
• By diversifying your portfolio with other cryptocurrencies, you can reduce your overall risk. Some altcoins may be more volatile than Bitcoin, but they may also offer the potential for higher returns.
• Some altcoins have specific use cases that could make them more attractive to investors in the short term. For example, some altcoins are focused on developing decentralized finance (DeFi) applications, which are becoming increasingly popular.

If you're a Bitcoin enthusiast who wants to make short-term gains, I recommend that you consider diversifying your portfolio with a few other altcoins. This will help you to reduce your risk and increase your chances of generating profits.

What do you think?