Should We Diversify Our Investments? - page 7.

aencarnaci

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Quote from: SoiledDove on October 31, 2018, 06:19:17 AM

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

It all depends on how much money you have. The more you have the more diversification you will need. If you have at most couple hundred bucks than you do not have to, I mean you can still get couple coins but don't really need to diversify $200 at all. If you have couple thousand dollars than you can diversify in crypto and get tens of different coins and you can spend most of your money on known coins and put smaller amounts for some new coins that has a potential to skyrocket in the future (only put up like 1% of your investments into these).

If you have hundreds of thousands of dollars (which I have seen in crypto world some people have it) than you should surely diversify outside of crypto as well, put up some of it to stocks, others into bonds, some into golds and even real estate lands if you can afford to. Putting all of your money is a bigger risk if you have a lot of money, if you diversify into multiple stuff than you will be safe from any drops in one of them.

Mytoken

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I think it all depends on how much trust and recognition you have for the coins you are investing in. Concentrated investment can get enough profit from a rise, but it can also make you bankrupt!

Striker17

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0x860FA3F15AcDFC7c7B379085EaC466645285237d

Absolutely right, in investment the better and the best thing to do is to diversify or to spread out our capital to gain more good outcome, but we must know and pick the most and good project before we invest in it.

Pasaway2701

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Quote from: bit-freedom on October 31, 2018, 12:07:50 PM

Yes, I do think it is important to diversify our investments. In my case, I hold crypto coins and stocks. IMO, it is good to hold crypto coins that have potential to grow. So it is difficult to determine the number of different coins to invest in.

It is advisable to diversify investment for more opportunity of gaining. The price grow on different time to give profit. Though coin is hard to decide which is the more potential, I choose those coin that is popular for investment and many are suggesting that it is the good coin.

Pamahaw

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Quote from: SoiledDove on October 31, 2018, 06:19:17 AM

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

You've already said it, diversification of investment is always a safety net on our money. Yeah, you are right in case one project fails at least you have other investment which have the probability to succeed. Putting our eggs in one basket will also be a big risk but it could also give you so much gain. For me the best strategy is to spread as we don't know the future. Don't be in a hurry, haste makes waste.

thesosorr

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For me it's good not to invest all the capital in a company. In this case (investing all capital in one company), in my opinion, investors always prioritize opportunities with threats that will occur. Well, if this company has good progress and a big chance of succeeding with the project, then not investing all capital is a mistake.

Btcirene88

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Definitely you should diversify your investment to prevent from lossing out to the capital with this regards market movements. Many investors are now using this strategy cause they know what would be the outcome once the market are continuesly dropping to $6000 USD.

xiaoY

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This requires personal investment, and diversification is also risky. For example, you cannot sell all coins at the same time. So there is no best way to invest, only the way that suits you is the best.

Dragonrage201

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My vote is to diversify since one cannot know the future and any single crypto is always going to involve more risk than a basket of many good cryptos.

modmalaney

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Maybe this is just a simple illustration. the investment focus is on a single crypto, the excess will profit when the price goes up, but a great loss when the price falls.
When selecting multiple cryptos to be owned, it will enlarge the opportunities because of the results among the many existing cryptos does anyone know exactly where that will soar. and when a price decline then it could be another crypto will help to create the conditions not be too large.

flagpara

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That is good thought to do. You should invest Overwhelmingly of your money in good project and rest of the percentage others project.

jhache

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If you want to earn money it is the most recommendable, having so many options to generate extra income, it does not make sense to stop diversifying your investment, it is very important if you want to have at least a fairly constant profit ratio, remember that the end game here is to go for a safe income, minimizing the risk of loss, so if you want to get rich overnight, the best recommendation is to invest all your money in an ICO and pray for it to explode ...

brusnika

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I think that there are people who once bought only ether or only bitcoin, and haven't lost. But this is from the category - people are lucky, and this doesn't mean that everyone will be lucky. To a greater extent, investing is a hard work that requires constant study, because markets and conditions are constantly changing and it's necessary to be flexible to adapt to these changes.

Cat Coin

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Potential next Aldona unpredictable. To avoid disappointment and significant financial losses, professionals give several recommendations:
Do not invest in one or two assets;
Use different variants of earnings in the crypto market;
Constantly study analytical materials so as not to miss the perfect moment to enter.
The only way you can stay afloat.

cola-jere

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Quote from: SoiledDove on October 31, 2018, 06:19:17 AM

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

If you are to diversify your investment, don't just put it in crypto and buy stable coins - even USDT, USDC or TUSD etc.
Basically it's still crypto.

Buy equities, forex, bonds, precious metals and real estate as well for diversification.

adzino

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www.Crypto.Games: Multiple coins, multiple games

Quote from: SoiledDove on October 31, 2018, 06:19:17 AM

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

Its actually similar, but there is a bit of difference. You will be risking more when you invest on one coin, but you will be making more profit or more loss (!). Higher risk = Higher profit. But, if you wish to stay on the safe zone, spread out your investment on some stable popular coins and others on some new coins. This way, if the new coins do get a bad turn, you can keep yourself covered through your popular coin. Less profit though.

RandyMagnum

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If you are investor and not a gambler, then diversification is the main rule to become successful. Many people are pay for such advices and you can use it for free.

hesham51

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Diversification is the basic rule not only in Crypto market , but in any market, you need to develop your strategy to for managing the risk wisely to keep it at minimum as much as you can, try not to weed through this blindly.

shamc

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Even if the project looks like a sure thing it can dump for a variety of reasons. Keep at least 25% in bitcoin, then you can diversify the rest of your portfolio

Crypto_lion

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NEW MEDICINE:Faster, Safer, Smarter

Diversifying is the safest thing to do in any kind of investment not just crypto currency. Diversify across multiple segments and pick competitors within the same segment as well.

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