Topic: The very worst part of an investor or trader that has a low budget. (Read 1295 times)

Each person does have that different mindsets on which there are ones who do really likes on going out into their comfort zone and would really be looking for other opportunities on which they do seem that it could give out that kind of better opportunities or really those times or moments that you do find yourself having that kind of potential earning and just simply taking up the risks. Although there would really be those individuals who wouldnt really be wanting to take another step and would really be just that contented on what they do current have and wont really be having plans on taking step further.
When doing trading then it will really be requiring up that action on which needs up to monitor and also having that sufficient capital but its not really that necessary to be big.

There are those individuals who are really that not wanting to start up low and thinking that the higher trading capital the bigger that they could get on which this is really that a very wrong mindset.
On the time or moment that you do find yourself having that experience then you will be having those kind of realizations.

Yep, if a person doesn't want to spend a dime on research - he would just put these funds into the BTC. And that would be it.
In the future, he would see how much he would profit from it and how much he would get from some alts.
 

Plus, diversification is good up to a point, if you just buy shitcoins on the basis of what you want to do with diversification then it would not be a good thing at all. I would say, keep the diversification towards just a basic level, get the good great results and that would be a good thing for everyone, without that you are going to end up with a lot of bad results and won't be growing any better.

I have seen way too many people who have 30+ different coins and tokens, and I have to emphasize that we are not seeing that much difference at all, definitely a big problem, and we can't grow out of this that easily, things aren't as simple as you may think and those 30+ projects can't make you money.

However, if you limit it to 10, then you could definitely find good 10 projects in crypto that you can invest into, and make some good return on your money as well. I am pretty sure that it is going to take a while, but it is not a simple thing at all.

The best thing that could possibly happen is that accumulation is one of the simplest ways to build oneself because many people struggle to build their capital, which is where the problem always arises. They may have interest, but capital may be the thing preventing them from becoming investors, so it is very easy for everyone to do if they also learn to accumulate, and the investment won't affect whatever bills they are currently facing. Additionally, you can have a budget once you are able to accumulate or even DCA, as there are many benefits when both your budget and accumulation align with your goals. As far as that party is interested in investing, there is nothing more fascinating than having goals and being able to achieve them. This brings about an inner joy, which is one of the reasons you should take everything seriously.

I agree with you about that. I have seen people having small capital but diversifying it to tiny amounts in different assets,, which makes no sense. If you have $100, you shouldn't buy ten assets with $10 each because that isn't going to get you anything in the long or short run. It's better to do some research and invest that amount in a single asset that you believe can bring you some profit after some time, maybe invest it in Bitcoin or any other altcoin that you think is good enough for it.

Diversification is good, but only if you have enough capital. There is diversification, and then there is over-diversification, when you over-diversify your investment, you are not saving yourself from potential threats or losses but you are wasting your time and money because the end result will barely be pleasing.

DCA helps you accumulate amount coins with time but your return is still 100% what the coins do later in the future and what you still invested matters as well. The main purpose of DCA helps you to buy at any given price and not necessary if you have the money at that point in time or not. Imagine that you did spend $2k to buy ethereum using DCA and ethereum has only did 50% yearly move, you wouldn't have same profit with another person that did spend $100k on his investment.

The most important of them is that you whether you have large amount of money or small amount of money, whatever you are buying or doing DCA with, don't do it with one coins, diversify your portfolio so that your story will looks similar to that guy that bought $17 worth of Pnut that turns to $3 millions after Binance listing. This is because you never can tell which of the coin is going to blast off with berries of profits.

If there is at least one meme that pumped up to 1000x - it actually would work out.
However, of course - more stability is always better.

I was probably wrong to say that "there's no need for plebs to diversify" in my previous post, BUT what I was actually saying was - that, with a small amount of capital, it's a more inefficient to diversify than making more concentrated investments in one or two or three assets.

Perhaps to put in practice without using real money, write down a diversified portfolio of ten assets and pretend that you allocated different amounts of dollars in them, with a total amount of $1,000. In your other "portfolio" pretend you invested $1,000 in Bitcoin. Compare how much each gained after three years.

this statement is true, diversification in same coin under alt category just feels like we're diversifying our asset on to the same thing, we're exposed to the same risk, the same market, the same trend, basically we better off doing nothing at all, diversification works well if we diversify to other asset probably more stable one compared to crypto.

agreed with what some people said though, if our asset isn't that great anyway, why bother, just focus on maximizing the profit and building our wealth first, diversification works for people who manages meaningful amount of money where even a 5% rise means few grand or more.

An investor has two goals - the first goal is to create wealth and the second goal is to preserve wealth. In most cases, wealth creation happens outside the stock or crypto market.

There are very few cases where an investor enters the market with $100 and ends up with $1,000,000. Yes, such cases sometimes happen, but it is more like gambling than investing.

Wealth creation usually happens in business and employment, and when a person has extra money, he starts investing. The initial start-up capital is very important.

Plebs like us who don't have the amount of capital that Warren Buffett has DEFINITELY DO NOT NEED TO DIVERSIFY! Our investments should be concentrated, not diversified because what would be the point of reducing risk if what you're risking is a small amount of capital?

Perhaps many of you have already known that after losing some money in "day-trading" different shitcoins, I invested all of my savings in ONE asset - Bitcoin.

Although I encourage my fellow plebs to Buy and HODL only Bitcoin, you should choose an investment that you have MAXIMUM CONVICTION.

People who have seen how Bitcoin performs in the market from each cycle and trend will certainly never be nervous and panic in buying Bitcoin and storing it for the long term. Because it can also be used as a handle for investment even though there are also many traders who use it in trading just to get profit every week. But I recommend saving Bitcoin and only trading others so that the profits we get from other things can be used again to buy Bitcoin so that we can get profit from several aspects every year.

Overall, diversification has both advantages and disadvantages, it is not as perfect as we imagine . It can help us reduce risk but it can also reduce profit because not all coins have the same increase when the market is bullish .


In case our capital is only 100$ or 1k$, putting eggs in many baskets (altcoins) is really a bad idea because it will limit us from achieving maximum profit and at the same time does not help us minimize risks .  Since the entire altcoin market will fall if bitcoin falls I also disagree with this strategy .

Also, diversification is only true when we invest in unrelated assets , if we invest all our money in crypto (bitcoin and altcoins) only , I wouldn't call it true diversification .

is that really true though? diversifying $100 to 10 coin, just feels like a lot of headache just probably for $3 gain in 30% price increase.
instead if you don't diversify you can spare yourself of headache and still profit, I mean most alts rally in unison anyway, if it dumps all dumps and if it rise all rise so I think at this point diversification is just waste of time.

I prefer diversification when the money is already huge enough like $100k ++ then we could diversify to crypto and to other asset, diversification in alt for the most part, is just waste of time.

There's no such thing about being safe if we do speak about Bitcoin investment or anything here on crypto space but somehow if we do speak about lesser risks then this is something that pertains about taking up
Bitcoin investment among other coins or tokens in the market. There were really that those who are really that risks takers on which they do love to deal up with those other options on which they do know that they could really be able to obtain it out when dealing up with crypto. There are those individuals who are really that not be able to bare up with the risks that they could take when it comes to crypto investment.
Also, when dealing up with investment then not all does have that kind of big capital on which they could really be able to have because when it comes to financial capacity then not all would really be having that
kind of similar budget or allocation when it comes to crypto investment.

If you do find yourself having that less capital then better to make out some compounded interest on which it will really be able to build up overtime. Dont rush up yourself because it will really be that basically
that having that kind of issues on which it will really be leading up to desperation on which it will really be resulting into that carelessness on the trades you are indeed making.

It is clear that it is a problem for the OP, as they are not happy that those that have more resources can afford to put their plans in action with ease, while they cannot do the same, but it is a waste of time to think like that, because as long as a person got their money in a legal fashion, there is no reason to criticize them over it, what they need to do is to forget about what others are doing, and concentrate on what they can do to increase the capital they can invest on this market.

Why is it a problem? One can start investing with accumulation or DCA and start buying in small amounts according to their budget. No need to wait until you have a lot of money just to invest, just start buying in an amount that suits your budget and do it consistently until your goal is achieved. Because now many investors regret not buying from the start just because they saw the price of Bitcoin was high, even though it was affordable if they bought in smaller amounts.

Diversification assumes that you will invest not 10 different tokens, but in 10 different projects. And only 1-2 of which are related to cryptocurrency. And only 1-2 of which are related to cryptocurrency, while other investments were made in securities, real estate, gold, etc.

If you are an investor then you should be calculative of all the periods that you will be able to invest and the moment you have already invested it will make everything very easy for you, and that is why you need to have knowledge of what you are doing and in the process of acquiring you will be able to know when exactly to invest or not and sometimes I even feel that the capital is more important than knowledge because after the knowledge and you don't have capital then they are all useless the best thing I will do is to get capital then next I will get the knowledge to make things easy for you.

If you are able to sell the one you have to make a high profit then you can go for other coins, people don't want to rely on one coin and I don't blame them you have to know how to take advantage of the market because every coin have their own potential, the market is alway open and you have to be the one to choose wether you want to invest in a particular coin or not and your research will determine which one you are going for, and that is why you have to take your research seriously before investing.

Diversification will not be investing into different coins because you can get the same profits and a more secure one from just investing in one coin and that coin is Bitcoin. Diversified into different assets from different sectors and different market to help you when the price of cryptocurrency is down. Even though we are in the bull market, there is going to be times when the market is down and you are not meant to sell anything during this time even though you need cash therefore if you had other investments, that is the time when you can sell some part to keep living with your hopes being on your investments in cryptocurrency to give you enough money to cover up the losses from the other investments when you have already finish your emergency money.