Topic: Is diversifying into the biggest winners a good idea? (Read 386 times)

Well, is that an option to think especially when we are losing into that certain coin but we are still holding the reliable coin in the market, I don't think we need to change it. It could be better to add some more, we have that assurance already and there is no reason why we risk into another coin.

Your idea is in fact one of the fundamental rules of trading, if you want to obtain profits you need to be in the markets that are showing pronounced movements, if for example you were given the choice to invest in bitcoin or ethereum right now in which market you would like to trade? Most traders will select bitcoin since ethereum is barely moving while bitcoin is still showing a high level of volatility even if the price does not seem to be trending anymore.

I only see Bitcoin as a better way to gain some profit from an investment. It might take very long for your investment to grow but it is all worth it by the end of the day. Altcoins may be one of the best to invest but we should carefully choose which coins we should invest so that when diversifying you will still get back your capital at least since the market is very volatile.

Diversifying is good idea, compared to holding your enter saving on one. Because if you had diversified your investment, you will be escaped from the entire loss. Atleast one or two will help you to tally the loss occur by the remaining. But don't diversified into very small parts.

Making top coins your major priority and major coins in your portfolio is even diversifying to me, because those projects that are just lying fallow there without growth is not called diversification to me, it is just called waste of money, energy and time.

It is when you fully invest in those top altcoins that I can really verify that the investor has really diversified, and to me, when diversifying, one has to make bitcoin as the major crypto in the portfolio, and that is what should earn the 60 percent that you talked about, and maybe the rest 40 percent can then be for those other top altcoins you talked about.

This is the type of portfolio that we can say is really prepared for the future, because we have to ensure that we guide our investment jealously and that is the only way to guard it.

You should not pick the current winners, you should pick the potential winners that no one has heard about yet. Those are often low cap coins with unique use cases and good teams. Good luck hunting.

When we invest in the top coins list, I think we will have more chance to make a profit in the future because the top coins list have a chance to increase higher. But that will not always guarantee because the position can be change from time to time and we need to be careful to select the coins. The best thing we can do is only analyze before we buy so we can decide which coins that can increase in a long time or short time. Besides that, with so many altcoins in out there, we can be confusing to choose the coin.

   You invest in Top coins, you diversify with investments in some of the alt-coins. It`s how you start building crypto-portfolio, where Top coins should be
at least 60% of your portfolio, the rest is diversifying.
   Ratio is good as long as you believe in it. Some people believe in alt-coins more than in Bitcoin, some are Bitcoin maximalists. I`m somewhere in between,
I like Bitcoin, and I like my alt-coins.
   

well, i still thinking wich coin u pick ,  as far i know,biggest gainers from that day can be biggest losers on the next morning.
because on my research its just high hype on very short time duration.
"of course it will happen if u pick unpopular coin". and got pump by ghost suddenly and u picked it.
like this time , we can see EVX got high pump and maybe u picked it and i am not sure tomorrow it will be give some profit.

for now, i have small penny on binance and spread it to 8 coins/tokens by what i like, and nothing change soo far, even 2% i didn't get.

It's still going to be hit and miss no matter what. You can narrow your chances of losses of course with research and experience but end of the day even something like BTC could go down beneath the waves, and we have no say in it really.

But definitely, diversify, and take low risks with big money. Put a few spare dollars into high risk alts for sure, but consider that a gamble.

Its a good idea if you invest your money on popular altcoins in the market right now,if i were you i will invest 80% of my cash on popular altcoins and invest the remaining on new promising projects

I'm note sure about this as a strategy. We all know that coins can rise and fall dramatically. If you are buying coins that have already been rising, there is quite a high chance that they will drop again after you've bought them. Added to which if you're just buying blindly based on market performance rather than the properties of the coin itself, then you won't know which ones are likely to continue rising and which are just pump and dump.

thats right, for me if somebody buying an altcoins when the price on overbought area, they must set a stop loss level to reduce the risk
because, sometimes the biggest winners altcoins, already touch the overbought area, and a lot of traders will take their profit when the price touch the overbought area mate

maybe it work to make a small profit, but investing on alts when the price at the TOP zone is dangerous my friend
so, you should becareful,because  anytime the price could down hard

This is a pretty good and simple decision for a cautious beginner. He started with the small sum and invested in the well-known cryptocurrencies. Even if he loses (it will not happen if the man can hold tokens for a long time)...so, but IF it happens, the loss will be minimal. On the other hand, he will get a priceless experience, which will be helpful in trading further.

I understand what you're doing, but I think it's a huge gamble. If you don't know why a coin is rising, you are unlikely to know when it will fall as well. Especially if you are spread across a large number of coins.
It's worth it as an experiment with a small amount, but I don't think it's a recipe for longer-term success. There's no real way of knowing whether you are buying in at the peak with the majority of your coins. This is especially a risk when the whole alt market often moves together.

There are many new projects i called future winners in crypto space that have better use case and if you invest in them now you will get bigger profits in the future more than investing in old popular coins

This is considered a short-term strategy and I have done the same for the Huobi Exchange. When two exchanges are trying to pump coins to prove their financial ability and credibility, it's a good time to buy lots of coins and hold for 1-2 weeks.
at huobi, their pump coin every night, and knowing the rules, I set a profit margin of 17% per coin and almost sold all the coins at a high price.
I will repeat, it is a short-term strategy and investment diversification is also a bad thing for a new trader.

I would not do that as that's opposite to my strategy, Binance is full of day traders who loves to hype coins, I I'd be careful before buying, biggest winners coins could usually become the biggest loses when the market correct.

If a coin has risen well before then I wouldn't use a straight sell at a low percent.

You could put in a sell as a high percent in a low value coin you expect to go higher and then a stop loss at a low percent once its started to go higher.

Its not a bad idea if you invest in top coins on the market right now,top coins like bitcoin,ethereum and bnb token are very good altcoins,you can split your money and wait for the beat time to sell

I think it's a very good idea for setting buy and sell orders.  Buy at the lowest point and set some sell orders for 15%, 30% or whatever and leave some out in case it goes 2x, 3x or more.

I am hoping that eventually you will get the gains that you are looking with this strategy. I would say that maybe it is still too early to decide whether this strategy is a good idea or not...so just give it some more time. One thing for sure is that these digital assets on the top had already made their biggest run so what we should be looking for can be the next big run just like what many are expecting for Bitcoin soon or maybe next year. I am wishing you good luck and please update us here in case a major development can occur...this would be interesting to watch.

You seemed to planned this very well and you know what you are doing. You have an exit strategy after this.

Good luck with your trades.

Diversifying means to hedge against your biggest investment. It is also a long term investment. You dont diversify for profit but to minimize loss.  To diversify into 10 coins is quite a project. and to diversify with $100 is waste of time.

The first one will end shortly at the bottom. I'll pull 0.1 off one of my exchange accounts and see if I can replicate the profits so far.

I'll wait for that 0.1 to become 0.11 or maybe 0.12 and then pull it off. These coins aren't greatly volatile but they van change by that much and have done twice with the 0.01..


Since we're not in altseason, the 10 gainers included a few loss coins too however one of those coins was augur. Fantom was also one of the coins I picked up with tnt and ren (and a couple of others).

Sure it can work out to take small profits but what can gain quick heights can plumb even harder so monitoring will be key. Curious what kind of volumes those coins have you picked on the daily chart.

Chasing 1% for profit is good, but you need to choose the right coin, which could increase in the short term or long term. At this moment, there are so many coins that you can choose but be careful because the other coin will tempt you to buy and you could buy the wrong coin. I am sure with the diversifying of the coin will give you a bigger profit but that only works with the right coin. Maybe you can use the long term strategy, so you don't have to worry if the price still fluctuated in a short time because you are chasing a bigger profit in the long term.

Be careful if you are targeting those kind of coins. I'm sure that you know what will be the next scenario after a coin gets pumped. It's not that bad at all as long as you are actively monitoring it and you are aware of the possible positive and negative result of it since it's probable your spare money.

How long do you plan to execute this strategy?

@fiulpro, I'm not after 3x or 4, a 1% profit is still a profit. 1% of 1btc isn't bad for a few hours fiddling... If I did more research and put something on some coins that were going to do well it might make 20%... I don't see why people are after doing anything other than making things interesting. Fiat currencies don't follow bitcoin as well as alts do and putting money in the bank just devalues it (since the interest is lower than inflation).

@asajapheth, can binance list the highest volumes too? You'd have to cross rqference the volume with the chart and the rsi to check its not likely that the volume is because its dropping but that is something I've heard before. The 10 altcoins is generally because I was without the choice of what I wanted to test to try to make something on...

@dothebeats, yeah it is risky to pick those coins randomly and I did put more into a coin I'd previously heard of (but not much more) so that may have swung it. I was also interested in if any of the coins got delisted, I was expecting one or two might but that doesn't seem to have happened. The highest coin I put into was 19.8% daily increase which was quite huge but it was only $10 so I thought I'd try it and see how it came out and I don't think that one has fallen so much...

Not the brightest of ideas but is certainly workable. It's a huge hit or miss considering that not every coin is that active or is receiving a lot of attention and some of them are being pumped for a while then people will move into other projects after making some money. Choosing the top 10 is not really ideal since those can change very often, though diversifying in itself is not a bad choice. Besides, $100 is also a good amount to try things out and see whether it works anyway so I don't see any harm in doing this. Be ready to lose a huge chunk of that play money though since there are some coins which has erratic market movements which defies most coins' movements.

If you are looking for coins what won't move much and will be a good stable idea , then why not a bank ?
In this market you need a coin that is hopeful for the future at the same time the coin should be good enough to still survive even after the market gains a few hundred ones .
You should understand that most of the coins never make out of *3-*4 times of their starting price and that's what if you are going to invest it , then you might get lucky very rare , might be the next Bitcoins .
But at the same time you might be totally failing this investment opportunity .

Yes, It's not bad. I do it with small cash at times. But I do it even before they become the biggest gainers. I watch where volume spikes, and that's where the biggest moves are about to occur. You can check out the top gainers on Binance for some days, you'd notice volume proceeds price movement. When you watch volume, and play with funds most times cash is made.

I've notice it is mostly random shitcoins that make this list most times. I'm not feeling the alt season vibe because my favourites aren't moving forward. BTC is crawling through the desert on its elbows right now. I'm waiting to see what $Vite does.

I wouldn't say investing in big gainers should be taken as a serious investment though.

PS: This is not an investment advice.

I threw ~$100 into the 10 highest gainer coins on binance (not sure what the time pera mete was).

Anyway after doing this, the value has fluctuated between ~8-12mbtc, is this a good way to get a feel for the market and use as a fairly stable investment or did I just get lucky. This would obviously be done for a short term and you'd only ever put in when it reached the 8mbtc mark again (or at least sub 9).

I'm wondering if I ended up getting lucky on this or whether it will actually function as an investment idea, these coins seem pretty stable short term and don't seem to move by much? I knowforex sites list the biggest gainers and losers but I'm not sure if that's just a plot to say you can earn 3% in a day...