Is diversification into different coins really a good advice for Newbies?

aysg76

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Quote from: 1miau on July 18, 2023, 08:26:03 PM

I've updated my list of translations because Chilwell has translated my topic and presented it in our Nigeria (Naija) forum section.

Many thanks @Chilwell for your translation.

Translations:

Nigeria (Naija): Is diversification 2 different coins really be good advice 4 Newbies?, translation by Chilwell

Oh that's good as I didn't notice that you have also done great job of translating this thread in different languages for the help of newbies who are always confused that whether to diversify portfolio or not.They will come to know about different experiences and opinions of members which will help them but as previously my advice is also HOLD Bitcoin Wink

1miau

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I've updated my list of translations because Chilwell has translated my topic and presented it in our Nigeria (Naija) forum section.

Many thanks @Chilwell for your translation.

Translations:

Nigeria (Naija): Is diversification 2 different coins really be good advice 4 Newbies?, translation by Chilwell

Getmon

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That is also what I hear from crypto experts who advise diversifying only in the top ten Coinmarketcap-listed coins. Sadly, that was a failure because, as the chart shows, the coins in the top ten are inconsistent when compared to Bitcoin and Ethereum becoming an exception among thousands of altcoins. I continue to diversify, and I am benefiting from it, but possibly because I have sufficient experience in the altcoin market. So it is best to simply recommend only bitcoin to any novice. Anyhow, they will soon continue to learn more about cryptocurrencies, and soon that they have sufficient knowledge, they will be willing to take a risk on altcoins when they are ready.

Coyster

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Quote from: Cryptomultiplier on February 05, 2023, 05:51:37 PM

I asked because unless you have mentors who you can call up for directions or advice, as a newbie, you will likely learn from the experience of having more losses than gain, mostly when the market shifts and other factors happen.

Mind you that you mustn't have mentors/experts you can call to help you choose your investment or the coins you should throw your money on, if you want to understand crypto investments properly, you have to do it yourself, with adequate research you would get the right advice and information without needing to contact anyone who you would/might continually depend on before making any move, doing things that way could get you misled or scammed.

Quote from: Freeman66 on February 05, 2023, 02:24:35 PM

Sometimes diversification of investment also increase your income.

Diversification of your investment increases your income if you buy different assets (that are non-crypto), it is prolly best to basically just buy Bitcoin, and buy other assets like gold, etc.

1miau

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Quote from: Freeman66 on February 05, 2023, 02:24:35 PM

Sometimes diversification of investment also increase your income.
But to achieve this, one has to be very carful of the platform to which he wants to pour out his investments.

Platform?
It's always recommended to send all coins to your own wallet, where you own your private keys.
Not your keys, not your coins. Wink

Quote from: Cryptomultiplier on February 05, 2023, 05:51:37 PM

Diversifying into different choice coins is a good idea, mostly when you know what you are doing.

Have you read my topic? Cheesy

Diversifying into different Altcoins has proven to be a bad idea. I've made a new round of comparing Altcoins and Bitcoin, this time the Top 10 coins on December 24, 2017 vs. today by investing 900$ in:

- 900$ in Bitcoin
- 900$ in 9 Altcoins (100$ each)

It's a very bad result for Altcoins once again:
Altcoin result: 45,10% loss
Bitcoin result: 62,94% gain

Cryptomultiplier

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Diversifying into different choice coins is a good idea, mostly when you know what you are doing. I would also love to ask if you are a newbie here or a newbie to crypto currency and its use?
I asked because unless you have mentors who you can call up for directions or advice, as a newbie, you will likely learn from the experience of having more losses than gain, mostly when the market shifts and other factors happen.
Learn first, before becoming a pro. No one goes anywhere when the cart is in front of the horse.

Freeman66

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Sometimes diversification of investment also increase your income.
But to achieve this, one has to be very carful of the platform to which he wants to pour out his investments. People like me who is a newbie I won't be so eager and haste to make investment into other platforms that are unverifiable like Bit coin. So the advice for my fellow newbies is that, take proper evaluations of the platform be for investing or diversifying your investments

1miau

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Short update of our topic.

I've recently analyzed prices from all Top 5 coins according to Coinmarketcap from the last all-time high (2017) until today. As reference date, I too December 24, 2017 from historical Coinmarketcap, because Bitcoin had its all-time high on December 17, 2017 and many Altcoins around January 4, 2018.
Each Altcoin got $100 in investment (4 x $100) and $400 in Bitcoin for comparison.
Result: the $400 for Bitcoin became $651, the $400 for Altcoins became $331. So, our Top 5 Altcoins from December 2017 were only half as successful as Bitcoin, but Ethereum was more than twice as successful as Bitcoin.
And Bitcoin Cash was quite miserable with a loss of 94 percent... Cheesy

It's proving once again, how Bitcoin is more reliable than Altcoins (at least in our example).

CryptocurencyKing

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The saying not to put all your eggs in one basket could be so tricky. In one basket you might get all the securities you need while in the other, it could be some patched and bad basket and then you have your eggs broken in trying to be smart.

Putting g all your eggs in one basket might mean, altcoins and bitcoins and also could mean cryptocurrency and other fields of investment. Its left for you to chose wisely and know that which ever decision you pick, there is some risk in it and the very thing you hope to avoid or is running from would come closer to you even more.

BitKongy

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OP used Litecoin as an example but in early 2018 that was the time altcoins are surging (ATH), who would be so stupid to hold LTC at that time till 2022 when that was the perfect time to sell? Let's stop making altcoins a bad example when it's easier to get rich through them, with a good entry point and exit point you will make better profits from altcoins than bitcoin, bitcoin is simply the best for long term hold accepted.

ABCbits

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Quote from: Widdop37 on May 22, 2022, 11:20:58 AM

The aim I have towards altcoins is to never be a holder but a opportunity taker, altcoins give me more bitcoin, Bitcoin indeed deserves to sleep in our wallet address than altcoins but with altcoins you will have more bitcoin in no time.

It's fair point, but it goes both way. You took wrong "opportunity" and you'll have less Bitcoin in short time. Short-term investment isn't for everyone, especially those who don't want to regularly check the news.

Quote from: 1miau on May 22, 2022, 08:38:03 PM

Shhh, Hoskinson is busy posting selfies on social media. Cheesy

It's called "comminity building" and "important" for Shitcoins. Tongue

You're supposed to use term "Public relations (PR)" since it sounds more professional.

Quote from: pooya87 on May 23, 2022, 12:06:05 AM

Right now the dump part is so funny because it was so big that the percentage rounded up to 100% and the price is so ridiculously low that the number of zeros in the price doesn't even fit in the cell Cheesy

https://coinmarketcap.com/gainers-losers/

CMC should consider using 5.551e-20 (i didn't count 0 amount on screenshot) and "six 9s" which represent 99.999999% Roll Eyes

.

BlackHatCoiner

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Farewell, Leo

Quote from: 1miau on May 22, 2022, 08:38:03 PM

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Quote from: pooya87 on May 23, 2022, 12:06:05 AM

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Quote from: o_e_l_e_o on May 23, 2022, 03:39:29 AM

[...]

I don't want to sound stereotypical, but since you've started talking about shitcoins, a little more shit-talking is not going to harm. The Cardano community, along with Ethereans (and pretty much every other Twitter account, lol Tongue

) are assholes. Few months ago, I was invited in a Twitter Space, whose main topic was supposed to be bitcoin, financial recession and the like.

Every few minutes there were people, who'd taken the floor, and were somewhat attacking to the organizers with phrases like "Hey, Cardano does this", "Does bitcoin do that?", "Bitcoin has no dApps" etc. I've come to the conclusion that the worst people to talk about anything is those who buy "cryptos".

Quote from: o_e_l_e_o on May 23, 2022, 03:39:29 AM

Immediately get a warning at the top of the page which says "The smart contract owner is able to blacklist." Great start.

LOL!

o_e_l_e_o

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Quote from: 1miau on May 22, 2022, 08:38:03 PM

Shhh, Hoskinson is busy posting selfies on social media.

Always makes me laugh when a project which claims to be decentralized has a CEO. Makes me laugh even more when that CEO refers to the "decentralized" project as "my company", as in this tweet. Good to see Cardano bag holders can see clearly where their money is going - funding the CEO's trips round the world.

Quote from: pooya87 on May 23, 2022, 12:06:05 AM

[Coinmarketcap.com has an interesting page that shows biggest gains AND biggest losses which is a very interesting page.

I went and clicked on that SSOL coin out of interest. Immediately get a warning at the top of the page which says "The smart contract owner is able to blacklist." Great start. Roll Eyes

Then you see it had zero - literally zero - volume up until yesterday, when in the space of an hour the volume suddenly jumped from zero to $2.5 million. The feed at the side is filled with accounts like "Altcoin1000X" and "MoonMooD" just spamming the same nonsense we see from spammers on the altcoin boards here - great project, to the moon, bullish chart, etc. I don't know how it could be more obviously a pump and dump scam unless it was called "PumpNDump Coin". If this is what people are losing their money on, well I must admit I have very little sympathy here.

Seriously, just buy bitcoin and be done with it. You want to diversify? Then go and buy some stocks and shares, not these scam altcoins.

pooya87

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Quote from: o_e_l_e_o on May 21, 2022, 05:48:32 AM

Given that it is no secret that Tether is insolvent, it is only a matter of time before it eventually falls apart. The market crash when that happens will be a good one. Can't wait to buy that dip!

I can't even begin to imagine how the weak hands are going to react when they are forced to accept yet another ugly truth about centralized altcoins. It would be a funny market then.

Quote from: 1miau on May 22, 2022, 08:38:03 PM

Yes, some exceptions are still around and most likely will always be of course. We will also see random Shitcoins outperforming BTC.

Coinmarketcap.com has an interesting page that shows biggest gains AND biggest losses which is a very interesting page. You see this "outperformance" every day where the rises shitcoins have make bitcoin rises look silly but also this is interesting because right in front of them there is the dumps that tells the viewer about what they should expect next.
Right now the dump part is so funny because it was so big that the percentage rounded up to 100% and the price is so ridiculously low that the number of zeros in the price doesn't even fit in the cell Cheesy

https://coinmarketcap.com/gainers-losers/

1miau

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Quote from: pooya87 on May 21, 2022, 12:04:30 AM

Quote from: 1miau on May 20, 2022, 08:47:40 PM

*And you made a good choice by avoiding Terra USD.

Correction:
You got lucky that other but similar shitcoins that you didn't choose got dumped instead. Cheesy

There really isn't any difference between one centralized shitcoin and other centralized shitcoin. It just happened that the model they were using fell apart this time while others didn't but could fall apart next time!

Many thanks for the heads up. So LoyceV needs to wait and see if his picks for stablecoins will remain safe until December or if they fall apart before our giveaway closes. Cheesy

Quote from: Rikafip on May 21, 2022, 02:30:29 AM

Quote from: 1miau on May 20, 2022, 08:47:40 PM

Most famous Altcoins of 2017 / 2018 didn't even set a new all-time-high again in 2021 / 2022:

The one you are missing in that table is ETH and it managed to set a new all time high in this bull run as back in early 2018 ETH was at $1448 while in November 2021 it was $4815. I am not sure about Cardano, but I think that it also managed to surpass the old all time high during this bull run. Those are just few exceptions that confirms the rule though and probably the same thing will happen with all these new altcoins that are recently popular like Solana, Polkadot, Chainlink etc.

Yes, some exceptions are still around and most likely will always be of course. We will also see random Shitcoins outperforming BTC.
Ethereum, Binance Coin and Dogecoin for example outperformed BTC. But did someone know it would happen exactly for ETH, BNB and Doge? Why not EOS, Litecoin or Tron?
= There's quite a big chance to end up with a large bag of Altcoin losses.

Because overally it will happen what happened since Altcoins were invented: most of them will lose positions on CMC when their promises are proven wrong or just don't work as promised.

Quote from: o_e_l_e_o on May 21, 2022, 05:48:32 AM

Quote from: Rikafip on May 21, 2022, 02:30:29 AM

I am not sure about Cardano, but I think that it also managed to surpass the old all time high during this bull run.

Have Cardano actually done anything yet? Last I checked (which admittedly was a while ago) they had been vaporware for like 4 years. Marketcap of billions without even a working prototype. Roll Eyes

Shhh, Hoskinson is busy posting selfies on social media. Cheesy

It's called "comminity building" and "important" for Shitcoins. Tongue

Widdop37

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The aim I have towards altcoins is to never be a holder but a opportunity taker, altcoins give me more bitcoin, Bitcoin indeed deserves to sleep in our wallet address than altcoins but with altcoins you will have more bitcoin in no time.

LoyceV

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Thick-Skinned Gang Leader and Golden Feather 2021

Quote from: o_e_l_e_o on May 21, 2022, 05:48:32 AM

Even when you consider the constant stream of newly created shitcoins with ridiculous marketcaps (which in no way reflect their true value or the amount of money actually spent) diluting the numbers, bitcoin's dominance has increased by 4% over the last month, while pretty much everything else is down. People gamble on shitcoins during a bull market, but as soon as the bear market comes along, everyone knows the safest place that their money should have been all along.

That leads back to my conclusion that altcoins and all the other "disrupting creations" are only created to earn the creator more money. Add the fact that exchanges earn billions of dollars from it, it's not even a zero-sum game: it's a game with more losses than profit.

Rikafip

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Quote from: o_e_l_e_o on May 21, 2022, 05:48:32 AM

Have Cardano actually done anything yet? Last I checked (which admittedly was a while ago) they had been vaporware for like 4 years.

Nope, still the same old thing, Charles Hoskinson selling a pipe dream to army of his lemmings. AFAIK bunch of shitcoins based their projects on Cardano to benefit from the hype while ADA was pumping last year (I just checked and it managed to surpass 2018s all time high) but due their constant delays and false promises they had to switch on other blockhains.

Quote from: o_e_l_e_o on May 21, 2022, 05:48:32 AM

Marketcap of billions without even a working prototype.

Their followers are even more zealous than BSV ones so no wonder that they are still in top 10 mcap wise.

o_e_l_e_o

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Quote from: LoyceV on May 19, 2022, 06:02:01 AM

One of the tricky things to consider is that even though Bitcoin's market cap has been falling for a while, that doesn't mean individual altcoins gained market cap.

Even when you consider the constant stream of newly created shitcoins with ridiculous marketcaps (which in no way reflect their true value or the amount of money actually spent) diluting the numbers, bitcoin's dominance has increased by 4% over the last month, while pretty much everything else is down. People gamble on shitcoins during a bull market, but as soon as the bear market comes along, everyone knows the safest place that their money should have been all along.

Quote from: pooya87 on May 21, 2022, 12:04:30 AM

It just happened that the model they were using fell apart this time while others didn't but could fall apart next time!

Given that it is no secret that Tether is insolvent, it is only a matter of time before it eventually falls apart. The market crash when that happens will be a good one. Can't wait to buy that dip!

Quote from: Rikafip on May 21, 2022, 02:30:29 AM

I am not sure about Cardano, but I think that it also managed to surpass the old all time high during this bull run.

Have Cardano actually done anything yet? Last I checked (which admittedly was a while ago) they had been vaporware for like 4 years. Marketcap of billions without even a working prototype. Roll Eyes

Rikafip

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Quote from: 1miau on May 20, 2022, 08:47:40 PM

Most famous Altcoins of 2017 / 2018 didn't even set a new all-time-high again in 2021 / 2022:

The one you are missing in that table is ETH and it managed to set a new all time high in this bull run as back in early 2018 ETH was at $1448 while in November 2021 it was $4815. I am not sure about Cardano, but I think that it also managed to surpass the old all time high during this bull run. Those are just few exceptions that confirms the rule though and probably the same thing will happen with all these new altcoins that are recently popular like Solana, Polkadot, Chainlink etc.

Topic: Is diversification into different coins really a good advice for Newbies? (Read 1377 times)