Hey guys, I really appreciate yours advises. Thanks for taking your time to read and try to help me.
2. BTC should be in the portfolio, perhaps a 25% to 40% weight. This will give you diversification when all the alts are falling
Do lots of research before you invest and be ready for big fluctuations, its to be expected these are not sleepy muni bond investments.
I actually have some BTC, and it's giving me the highest profit, but i focused on altcoins here, anyway thanks for the advise.
You are advicing him to add more altcoins to his portfolio, but his budget is no more than $400 if you count all of the altcoins he has.. So how are you gonna diversify all those altcoins you said? If you mean, 45% of bitcoin then it is $180 of btc, then you have 55% to diversify into those 10 altcoins you said, and the other 10 that he has.
How the f*ck is he gonna diversify $220 into 20 altcoins? $10 each one?
You raise a fair point. Small positions dilute portfolio returns, but the converse also can be argued. More positions means you have greater opportunity to allocate to a big winner that goes up 100x to 1000x. Even $10 invested in an Antshares, Verge, Dash type name will lead to a violent capital gain. By having skin in the game you have the crypto name on your radar and can swiftly allocate when the price declines and build up your position.
Portfolios are not static. The original investor that started this topic may get a raise at work, may work over time, may receive an inheritance or redeploy savings that are invested elsewhere because the $400 is a pilot run. They may have $400 today and $2000 tomorrow. Have some faith in humanity!
Diversification has worked well for me to stabilize portfolio returns when prices inevitably go down. There are lots of low market cap coins priced around 1 cent of less, the $10 can be meaningful as a starter not to mention the psychological boost when one of them starts to explode.
eduardorco best of luck to you!
Yes, that's only my first move! I will insert more capital in to altcoins soon. I have some friends that are really curious about my investments and actually want me to invest their money in it. Maybe if everythings goes right, and you guys keep posting good stuff here, i make this hobby my future work
. Thanks CoinCollector006.
I bought a lot of coins to see how it works, trying to get experience. And it has been 3 days now, and by not moving a finger i already made a few bucks (10$)
, and in brazil that's actually really good, something about R$34, more than a lot of people make by working 8hrs in those 3 days.
Well, i will follow your advises and hopefully become a rich nerd guy!
One more question... What do you think about daily traders? If is done right, could make more profit than holders?