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

A very good point just as I’ve pointed out earlier, I’ve got days that seeing my portfolio a particular token keeps me happy especially with the recent good trend in $BGB token, I practically forget about my BTC because I have another token that is giving me what I needed at that point.

As for me my Portfolio is diversify, this is not for any other reason but just to make sure I don’t have all my eggs in just one basket. I have BTC, BGB and SFP on my main wallet.

People can invest in altcoins but they must realize that the movement of altcoins depends on Bitcoin. There may not be many altcoins that can provide profits in the short term, especially if Bitcoin's movement is not good. However, investing in altcoins can provide additional profits, but only with the right altcoins.

Those who want to invest in altcoins must really be able to find the right altcoin. Even though an altcoin is at the top of the list, that does not guarantee that it will remain on the list. There will be other altcoins that can shift the position of the altcoin. For this reason, they must be careful in choosing their altcoins.

Bitcoin is a long-term investment, while altcoins are short and medium term investments. If you have made profits from altcoins, you can move those profits into Bitcoin so that your profits will be bigger. It's best to make Bitcoin your main investment and use altcoins as an additional investment in crypto.

Investing in altcoins is not considered diversification because as we all know the entire market depends on the movement of bitcoin, but many people are still confused about this. You're right, diversification is when we own many assets in many different areas and they have nothing to do with each other. But I want to know, for people with little capital, is diversification really necessary? Why don't we focus on one area or asset with the most potential to maximize profits? Diversification is not always good, it can reduce risk but it will also reduce our profits.

For me it is a better idea to diversify out of the crypto market, which when it falls tends to fall all together. I have everything in bitcoin but I also have some index funds in the stock market, which is a way of diversifying as well, both because the funds are a set of shares and with that you are diversifying, and because the stock market is hardly related to bitcoin and the crypto market.

There is no denying that investing in altcoins will give you a chance to get higher profits because their risks are greater. But I will disagree with you that investing in altcoins will minimize your risk. Have you ever seen altcoins continue to rise while bitcoin falls? The entire market depends on bitcoin so it would be a mistake to think that investing in altcoins will minimize risk. Although bitcoin will not disappear, I bet you that if that unfortunately happens, all altcoins will disappear too. Therefore, investing in altcoins is not diversification.


I consider this a bad advice for newbies because altcoins are very risky and making profits from it is not as easy as you think. Let's take an example of this: have you seen any altcoins doing well in the past few days as bitcoin's growth started to slow down? I even saw bitcoin only drop 1 to 2% while many altcoins dropped 10%-20%, shitcoin dropped up to 50%. How do you minimize the risk of investing in altcoins?

Yes this is some very good advice for some new investors. We should never just put all of our 'eggs into 1 basket'. There is days when Bitcoin can not do so good.

But if we have alt coins in our portfolio this can make up for losses of out profit.  And yes you can make short term gains with the alt coins. My portfolio is mostly Bitcoin but I do have alts but not the 'shit coins'.

You just can’t prove otherwise with all of your points. Investing in altcoin still remains risky and should just be seen as gambling. You have just explained the advantageous part of investing in altcoin but you never mentioned the opposite part of it which is more likely to happen when you invest in them. Thanks for the advise but when telling people to invest in something, tell them the good and the bad part of it so that they will be prepared ahead of whatever befalls them amongst that two. These are all sweet mouth talk, but it is not always sweet when you begin to see your money sweeping itself out into the thin air.

I always consider invest in altcoins a big risk.
It's one thing to have received them for an airdrop or an advertising campaign, but it's another thing to go and invest.

in recent years if you see the top list of coins, you realize that it has always changed.
at this point, you must be really good at identifying the cryptocurrencies that are worth (out of tens of thousands) but you make your life enormously complicated.

only one crypto will be successful in the long term, there is no second best...

Diversification is key to successful portfolio management, it doesn't really matter if it's 1q, 1, 1 or even commodities. Spreading our money across a wider variety of assets reduces risk considerably and should be done by any investors. It's also not really about short or longterm gains, because we don't know the future. Even with the best possible research and forecasts we are still only making guesses about the future. Having different assets in our portfolio helps a lot to not be affected so severely when there is a bad month, as not all assets are going to drop in value at the same time. It also helpe when we want to take profit and can choose from a broader list of assets to sell. Managing risk is for me even more important than achieving the highest possible return, and diversification is the perfect tool for that.

It depends from person to person whether his risk taking capability is good or not.
I personally don't have any problem in taking risks and while I am holding bitcoin for long term, I keep exploring altcoins.
I trade them for short term and keep learning about them. This keeps me invested in bitcoin while finding new altcoins.

That being said , investing in altcoins to optimize profits or optimizing capital to invest in bitcoin is a good idea, and I have seen many people doing so. But everything has pros and cons, and because investing in altcoins is very risky, we should consider carefully . No need to go far, look at the current market, almost all altcoins have impressive growth rates of 30%, 50%, even bringing x2 profits in just a short time . Many people are taking advantage of this to optimize capital to prepare for the upcoming bull season . But the risk here is that we don't know when the market will adjust so we need to be careful.

As far as I'm concerned - and I speak with years invested in delving deep into the intricacies of crypto and focused R&D - technology can help us solve this problems. Algorithms monitored by human decision-makers can help pick the right opportunities for short-term gains, which is what I wrote this post about in the first place.

I wouldn't recommend investing heavily or for the long-term in altcoins. But they're great for profit maximization through short-term investing.

Many altcoins offer large gains. But how do you choose winners? The big question, right?

DYOR is great and necessary.  There are too many coins to discover a diamond in a bush. If you research the coins' tech, how they can be used, and the team's integrity, you may locate those hidden treasures.

In crypto, there are no guarantees. Bull runs are unpredictable, and markets can turn at any time. Spreading your bets isn't enough. Make wise investments too. Consider the market cap, group strength, development activities, and real-world application. Sometimes the coins that solve issues win, not simply create noise.

I don't think it's a hot take, I think most people who are invested in Bitcoin will also have one or two other Cryptos. Tho, I would argue that if you want to diversify your portfolio, you can still get other investment outside of Crypto.

Other thing is that some replies here seems to think that people who bought Altcoins think the Altcoin is better than Bitcoin, and those conclusion jump is definitely wrong, anyone who buy Altcoin know that the Altcoin they bought would never surpass and become better than Bitcoin. They just speculating on the altcoin to get some extra profit.

Diversification would be always best.  

Just like on what others been recommending that if you do have plans on getting those 100x or more then altcoins with low caps will really be your friend but the main question is,
which coins you would really be tending to invest on? If we do look around and see on how many coins that we do have in the market then it is really that hard to tell
on which coins does really have that potential. This is why having that DYOR would really be always that recommended on doing so. If you do miss out on doing so
and just blindly pick up coins then you might be ending up with those shit ones which it would really be resulting on losing investment.

Diversify as much as possible on which you could really be able to have some shot on getting huge profits on the time that bull run happens.
There would be no assurance that there would be no flipping that would happen.

Actually, probably higher returns, but higher risks.
We may be able to get high returns from short term investments in several altcoins. However, it is also high risk. Because not all altcoins that we take may actually go up well. In fact, there are also many altcoins that end up becoming dead coins after only a few moments and are unable to rise again. This has happened many times, when we are not right or too late to take profits, we will lose that chance. Maybe for some people, investment in altcoins like this is very promising because they can really analyze which coins will actually be promising and when is the right time to enter and also exit for high returns. However, for beginners or people who don't really understand, honestly, this will be more risky than we imagine. Many people fall into a trap like this who think that investment in altcoins will provide much higher returns in the short term, whereas in reality, it will not be as easy as we imagine.

Tell that to people who only own stocks. That's a single asset type.
If you own Tesla stock and bitcoin that's a 2 asset portfolio.
When you own investment real estate, gold, bitcoin and Tesla that's a 4 asset portfolio.

Stop telling people what to do with their money. Warren Buffet would tell you that holding crypto is a disaster. I think that people who have dozens of altcoins in their portfolios and have to waste time to keep track of all of them are causing themselves problems. Doing something like that instead of holding bitcoin is a real disaster.

I think those missing the most from the Blockchain industry are the Bitcoin maximalists, they have decided to shut out all avenues of exploration just because of their belief in Bitcoin and this is evidently visible in their portfolis. It is a disaster to have a portfolio filled with just one type of asset, this is not just applicatble to blockchain alone but investung generally.

If you invest in assets and you want to make profit, you should be open to opportunities as the goal is to be profitable and not just to hold an asset and hope for it to appreciate as speculated, it is worse in the blockchain space as bull seasons are almost unpredictable asides when its close to Bitcoin halving era. You can not hold assets forever without profiting and then your turn over will not be proftable, again, its easier to have other assets with lesser marketcap flip their numbers than Bitcoin.

Everyone knows that as a bitcoin investor there are some altcoins that can help you in reaching your bitcoin goal faster if you invest in them and when they rise you take profit and invest in Bitcoin. If there is any altcoin that I would invest in would be a Ethereum. Any other I jump on for the pump and dump.

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.

Of course - it's a big portion although not as big as you might think. LOL
I have ETH as well as BNB as investments - but as I said before, neither makes up more than 10% and each only accounts for 5% of my portfolio.

Over time, I may increase the budget for each of these investment assets - but I have a plan to keep the portions the same over the long term. I can confirm that ETH and BNB have given me worth it profits so far - but bitcoin's return remain much greater for me.

Well, it's true that one needs to do both, holding and trading, to keep earning profits constantly without having to wait for a certain amount of time before they get something out of their long-term investments. However, one needs to be careful about how they approach trading because those who are just investors might not be good traders if they don't have ample knowledge about it. So, someone who has just been buying and holding should first learn about how trading, or short-term trading, works before they venture into it.

Once they learn everything about trading and understand when and how they should buy altcoins and which altcoins they should buy, then they can start buying and selling altcoins for short time periods to get small percentages of profits from each trade, and they need to make sure that they are trading altcoins that are at least trusted instead of looking for higher profits.

Thats a big of a pie but its also good. So can I ask which altcoin you are investing right now? I prefer some coins with utility like earning passive or dividend upon holding them or at least have used to gain potential income. Like launchpad coin buy as of now, only got 2 of that and majority are staking coins.

The reason why people are not usually advised to invest in altcoins is because the risk of chasing after altcoins is huge compared to the risk of Bitcoin investment. Some people may say that crypto currency is a risky investment, but Bitcoin is an investment that, when you buy in the dip, you will actually make some profit during the bull season. But for altcoins, what we only know is the pump and dump period, which we can't actually tell when and how it will happen. Archiving profit with most of these new and cheap altcoins is dependent on luck, and if their liquidity takes place, it can actually melt down your assets so much that you cannot even sell off anything to recover some of your capital.

The point is not to recommend, it is conviction, in fact it is a shame, although it is relative, that the idea is disintegrated solely into the idea of profit. Why?, we are in a bitcoin discussion, and not on a trading board.   
In reality it can enhance your stay in bitcoin in many ways, being a bitcoin investor and only bitcoin is possible, but it is just as risky, but it is done, it is the idea of projects in many places in the world.(e.g.)

Obviously diversifying the portfolio in some Alts is not discovering "warm water" for those who are 100% holding bitcoin, if you have bitcoin the alts are not UFO objects, but based on that same concept, it is up to individuality to diversify for the Alts, In that idea, (my case) the monetary diversification would be 1000:1 , that is, I invest 1000 sat/sat and take 1 sat/ for any other asset, Alts, etc.

Portfolio diversification is very important.

Every good investor understands what it means to diverisify portfolio. You can not depend on only one investment to make you the kind of mone you want and even if it can, what happens when there is a situation that springs up as a disaster not envisaged. We have to carry our eggs in more than one basket. In the words of Warrent Buffet, do not test the depth of the ocean with both feet.

First of all, invest something that you can afford to lose when it's a cryptocurrency investment. Because all the crypto assets are highly volatile, anything could happen at any time. It's almost uncontrollable and unpredictable anyway. I agree with you that we shouldn't keep eggs in one basket. So it's better to split your crypto assets into different coins. But the important thing is to choose a potential altcoin. I recommend that you invest at least 50% of your portfolio in Bitcoin and the remaining 50% in altcoins. Because always, altcoin doesn't follow the trend of bitcoin, you can capitalise on your bitcoin investment during that time.

So far I don't mind if an investor diversifies - that's good and certainly something to consider. Bitcoin isn't the only crypto that can provide investors with returns - but altcoin can also potentially provide them with returns. I'm certainly more confident about bitcoin over the long term than altcoin - but that doesn't mean I should ignore opportunities in some of the best altcoin.

I currently have no plans to have more than two altcoins in my portfolio - but bitcoin is the only asset that already takes up 90% of my investment portfolio space so far. There's nothing wrong with diversifying - just don't do it across too many altcoin.

I think altcoins are way more riskier than bitcoin, I could understand having stables, in order to avoid taxation in certain countries... I would not diversify that much, a little gambling is OK, but below 5% of the portfolio

I do not entirely prefer short-term returns that are not worth such high risks. As for altcoins, I might choose Ethereum from among this extended list of altcoins in the market, but most of the capital will indeed remain in Bitcoin, as it is the dominant and safe currency. I have not regretted investing in and holding it for the long term, as it has withstood challenging market periods. Also, there is no guarantee of achieving huge profits in altcoins or even in the correct token, which may have the lion's share and deliver these profits and avoid SEC wars, thefts of its protocol, hacks & exploits of its chain, and rapid price collapses in short periods, as seen with Terra Luna token, for closest example.

If your goal is huge returns and a safe investment, put every dollar into Bitcoin and not be a short-term investor. Many indicators indicate that the 2022 bear market is about to end, and some events will add positivity to the market, such as the approval of Bitcoin ETFs, the halving event, and other developments that will drive Bitcoin's price to new heights.

That is only good if you end up with the right and sustainable altcoins but if you diversify bitcoin with random and too good to be true altcoins, then that would be a great loss on your part knowing altcoins will bring more risk of losing in your portfolio. Although some have experienced exceptional profits from some altcoins, but that is only very rare to happen because most of the time, altcoins will lead you more to losses than gains.

Diversification is not really bad as long as you know you are into coins with high potentials. But since altcoins these days are not that reliable than before, then the best decision is to stick with bitcoin. You will not lose a huge amount once you are into long term investing, and once you don't sell when the market is having a market crash or sudden price decline.

 If you analyze it closely, diversifying your portfolio is actually a good choice. But if you mean investing into altcoins who are more risky than bitcoin, then I don't think that will give you more profits aside from bitcoin. In reality, that will only make you more capable to losses since altcoins are more on a pump and dump scheme, today their prices are high but after today, some have suddenly end up with zero value and that's how volatile and unpredictable altcoins are.

However, if you focus on bitcoin which is the lifeblood of the crypto market, you will have more control of your portfolio because you know the high potentials of bitcoin that even it gets dump, it will recover again eventually. If you really want to maximize your profits, then do DCA so that the volume of your bitcoin will increase, and not exactly that you will mixed up your portfolio with altcoins which you don't know actually if they can sustain the market for long or they'll just good at first and eventually lose their value in the long run.

Id say you are right. But we cant force other bitcoin maxi to invest on other altcoins especially they knew the risk of super volatile compared to bitcoin. But there are lots of other people who grind with altcoins and converts it to bitcoin once they profited from that. Anyways, different strategies are being consider when it comes to investment. Some do dca and by this they are limitting their risk more.

Your take is quite definitive OP.  However, diversifying ones portfolio at a time may prove more stressful than is thought. Can you actually keep up with price trends and market seasons to know which crypto would be profitable at the time?
Unless it's fulltime crypto investment taken as a career, one may need to consider a portfolio enriched with other profitable assets like real estate, gold, intellectual property and the likes.

As long as a person understands very well how to manage several cryptos at the same time, then they are good to go.

There are lots of altcoins around and choosing what those should be included in our portfolio is not an easy thing to do. Yes, we have these well-established altcoins but the selection shouldn't just be limited to how well these coins are established right now. There are lots of factors to consider and our criteria for choosing will be based on how far we know everything in that said altcoin.

Diversification is always a good thing to consider but without proper management, a failed portfolio will be the result even how good those coins are.

You have said it all, there is no point diversifying to altcoins since they obey their king(bitcoins) and follow every of it's path, altcoins only deviates from this path by pump and dump scheme, so anything outside this, altcoins follows Bitcoin paths. I will advice you focus on bitcoins if you don't want to stand the chance of loosing your asset to scammers. Diversification in this case should go outside the crypto space. That's the best you can do

However, everybody has what he or she likes but what I want to say is that I don't give a fuck to altcoins or shitcoins because they are more risker than any other crypto investment, although Bitcoin is also a risky assets but it is more safer than altcoins/shitcoins.
I can't try to run from safe to risk just because I am trying to divert or trying to spread my wings (money) in crypto, Bitcoin is what I know of and no other coins, even if I want to have a second thoughts on other coins, I might just think of an Ethereum coins but fir now it has no good value to me.

Most altcoins also follow the route that bitcoin is taking anyway, so I don't think that's minimizing risk but rather enlarging it. Perhaps ETH and other crypto that are in the top 10 list would suffice, though I still doubt it.

If you're pretty serious about your investments, crypto shouldn't be your lone bet on this realm. You also should have investments on other traditional assets such as precious metals, real estate, or whatever that has value. Heck, paintings are the most secure asset to hold so far, but that isn't for the minnows and little guppies as one artwork could easily fetch a $100k price tag, and that's not even from a known artist!

I'd rather hold only bitcoins and the rest, some traditional assets rather than spreading my funds into the same volatile category and end up regretting it once it crashed.

Are altcoins not volatile? If one is so afraid of bitcoin volatility, then they should stay away from crypto. If it's not volatile, how can you make a profit? Even some of the altcoins that are said to be stable are not that stable.
 
Having a diversified investment is a good idea, but when it comes to crypto currency, using volatility as an excuse for multiple investment options is wrong. Besides,  you can never tell which altcoin is best for investment and which one is not, as altcoins have a greater risk when it comes to playing safe.
 
So if I have any advice, one should have a separate wallet for bitcoin where they can stock their holdings, and if they are altcoin lovers, they should do deep research before making any move to invest in them in order not to run into these 1-3 month projects that are just there for quick profit, and at the end of the day, investors are left to suffer for their mistake.
 
Bitcon still remains the best when you want to talk about safety, and if you must choose an altcoin, you can go for coins like Monero, which is also a privacy coin and has been here for a long time too.

Hmm, altcoins are less volatile than bitcoin. I totally disagree with this statement because you are comparing those things to those who don't have any guarantee to live more or neither. And they have more volatility; you never know when it will go up or down. While Bitcoin

Diversifying your portfolio in Altcoin, in my opinion, increases rather than eliminates your risk because there is more risk in Altcoin than in Bitcoin. It is true that Altcoin can give you a high return in short terms, but it also brings high risk along with the return. While Bitcoin has a lower profit in the short term, it gives you a strong guarantee of the security of your return, while Altcoin does not. There is no guaranteed reliability.

Unfortunately, I don't understand how altcoins can reduce risk or how they can be risk-free. I have not seen till now how you can be free from altcoin risk. Altcoins can't even be trusted to survive, let alone not. So it can be argued that altcoins offer less risk than bitcoin. Rather, the claim that Altcoin is safe is wrong; it is a different thing that Altcoin gives a high return along with high risk. But the safest and most risk-free investment is bitcoin, which at least guarantees a long-term high return and survival in the future.

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?