To diversify or not to diversify... | Bitcointalksearch.org

Coyster

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Quote from: jahepahit on June 23, 2021, 04:44:27 PM

...and then add some good other altcoins that will perform well like ADA, SOL , depending on the ones that their project structure interests you.

The thing is if OP wants to invest in the network on a long term basis, then I'd remove altcoins from the recommendation, altcoins are more or less short term projects and quite a lot of them are shitcoins/pump and dump and lottery coins, thus they are not coins you just buy and 'sit back', they'll prolly dump on you if you do that.

Ones own research remains a very important key to investing, OP should make research into other viable investment options that prolly doesn't include altcoins, crypto isn't the only investment resource available to investors and if you'd want to invest only in crypto, then it's actually not a bad idea if all your coins is Bitcoin.

zanezane

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Quote from: Alisha-k on June 24, 2021, 10:48:23 AM

Diversifying should be a better option so you can always make some profit while you patiently wait for the main coin to sponge up. Because sticking only to bitcoin might be profitable at the long run but we aren't certain when the bear market would be over so holders can take off some profit. It's wiser to diversify in my own opinion.

For me though it's the opposite because I think that if you are just a starting with investment, I think that you should focus on one investment that will surely make you money and when you start making a decent amount of money out of that one investment, slowly diversify your portfolio.

Alisha-k

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Diversifying should be a better option so you can always make some profit while you patiently wait for the main coin to sponge up. Because sticking only to bitcoin might be profitable at the long run but we aren't certain when the bear market would be over so holders can take off some profit. It's wiser to diversify in my own opinion.

SirLancelot

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It’s very nice to see that you guys are really making good progress on your Bitcoin journey. Well, it’s good to diversify, but one thing you also have to understand is that Bitcoin is always a sure bet, but you can’t say that for all altcoins, except the top coins like Ethereum, and Litecoin? When you invest in Bitcoin, there is the possibility that after some weeks, months, or years, the price will go up and you will make huge profit that will turn out to make you rich.

Although things has really started changing with Bitcoin, it is now becoming stable and is no longer like when you can invest $100 and turn out to become a millionaire in the next few years. Dogecoin and other meme coins are the ones that can increase crazily like that, because they are not as stable as Bitcoin and doesn’t have a strong community like BTC does. But I am not going to encourage you to buy Meme coins, because their future is not certain. So maybe for now you buy Tron, Cardano, Ethereum, and Polkadot.

Oasisman

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Quote from: pooya87 on June 09, 2021, 02:47:00 AM

One of the reasons for diversification is to protect yourself from drops in the main asset you own so you look into buying things that can remain up or go higher when the drop occurs. Here is the problem with buying altcoins, whenever bitcoin has a bigger than normal rise or fall the altcoins get dumped.
So to answer your question, yes diversify but don't buy altcoins.

Make sense. So the suggestion should be to diversify your investment with another asset that's not Cryptocurrency. Let's say stocks or anything that holds an ascending value as time passes by.
I don't see much of a problem if this couple is just holding Bitcoin alone in their portfolio, since Bitcoin's price never go down since the first time it gained value to the market. It's infact keeps on rising. Who knows it'll hit the 6 digit figure this year or in the next 2 years after the next Bitcoin halving.

jahepahit

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diversification is very important, owning bitcoin is very good i can say that it should be more than 60% of of your portfolio. ethereum should come second and then add some good other altcoins that will perform well like ADA, SOL , depending on the ones that their project structure interests you.

Oilacris

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Quote from: Smartvirus on June 23, 2021, 04:20:43 PM

There is a saying that goes, "Do not put all your eggs in one basket". Its a very popular one and I'm sure you might have heard of it and probably knows the meaning too. Well, it goes a long way to explain about diversifying your investments. Should you be scared and sees a possibility of some serious fall in the price of bitcoin in relation to alt pins, itsbest you diversify. Bitcoin might be the investors choice at the moment because, it tends to rise so well when it does and the same thing when it falls. Its also important to know that, what happens in bitcoin is relatively reflected on altcoins as well. Though, there are some instances where, a significant fall in bitcoin might result in little or no or even a rise for altcoins. Hence, diversifying your crypto investment isn't a bad choice.

Yeah,its a popular one and mainly suggested on where you shouldnt really put your eggs in one basket because when one of those investment fails then you do still have the chance on making out recovery.

Unlike when you do just put a single focus on a certain investment and when it do failed then you would really be having a hard time.
Diversification is something that is really that mainly suggested

but of course you would really be needing to study and make out some research first on which are the things would be viable on
said investment and just dont carelessly choose up.

Smartvirus

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There is a saying that goes, "Do not put all your eggs in one basket". Its a very popular one and I'm sure you might have heard of it and probably knows the meaning too. Well, it goes a long way to explain about diversifying your investments. Should you be scared and sees a possibility of some serious fall in the price of bitcoin in relation to alt pins, itsbest you diversify. Bitcoin might be the investors choice at the moment because, it tends to rise so well when it does and the same thing when it falls. Its also important to know that, what happens in bitcoin is relatively reflected on altcoins as well. Though, there are some instances where, a significant fall in bitcoin might result in little or no or even a rise for altcoins. Hence, diversifying your crypto investment isn't a bad choice.

cheezcarls

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Quote from: BrotherMencius on June 09, 2021, 02:39:43 AM

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

I think diversifying your assets is necessary to avoid getting a lot of disappointment when it goes down the wire. This is what I actually do during my first few weeks as a crypto enthusiast. I just don't simply invest only in Bitcoin, but I diversify it to other coins and tokens like Ethereum and others as well.

Why diversifying is so important? So that your disappointment level will be reduced and you won't get a lot of stress if the market goes down. All coins and tokens are not having the same pumping or declining percentage. But always do your own research, and that is the most important thing of all along with proper risk management of your finances.

isaac_clarke22

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Quote from: Kasabus on June 14, 2021, 04:34:53 PM

~

Oh yes.
Many of the non-toppers end up losing value overnight anyway.
People dumping like crazy, can't be avoided.

SoeNan89

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In my opinion, it depends on each individual, even if you now want to switch to another coin or are still in another coin. One day you will switch to btc, because btc is growing day by day the price is getting higher, in 2018 the price of btc has soared and then the price also decreases. And the price of btc in 2021 beats the highest price in 2018. I'm sure btc holders will feel its heyday.

LUCKMCFLY

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In these times, diversification is a great way to shelter money, many are looking for a way to buy real estate, others are looking for a way to buy physical gold and digital gold, and the most risky and with more determination are looking to buy. Bitcoin, even so, the one who recommends diversifying is undoubtedly Paul Tudor

Twitter: https://twitter.com/SquawkCNBC/status/1404424423277486084

I think that these types of people advise well and are very accurate, for something they are billionaires.

milewilda

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Quote from: BrotherMencius on June 09, 2021, 02:39:43 AM

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

Diversify if you do seem it fits into your budget and depending into your own investment decisions because its your money then you do have the full rights on what you would gonna do with it.Just remember that crypto doesnt give out an assurance that it could give you the chance to buy a house in 10 years but we wouldnt actually know if we wouldnt try and this is why its important that you should only invest on the amount that you can afford to lose.
Dont compromise much about your life savings and always secure out some fiat for the future because in crypto doesnt give out assurance.

Maestro75

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Quote from: BrotherMencius on June 09, 2021, 02:39:43 AM

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

At the present worth, 0.4btc is over $16,000. I do not know what part of the world you are from but I believe it is enough to pay for a house already. Then about diversification, it will be a good idea not to put all your savings in one investment or all your eggs in one basket. Split your investment into different portfolio. That will safeguard your capital in a way.

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ETH is overbought. Increase your BTC, and add GLC which is the future of money on this planet.

How so is that? ETH got to over $4k at all time high but it is around $2,600 now and you are saying it is overbought? That can not be true.

angrynerd88

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Diversifying is good practice and it helps to minimize the losses.If one side you face the loss another side profit will save your investment. So in case you're considering of including crypto to your portfolio, at that point having Bitcoin is sufficient.Diversifying assets is also an art and without knowledge and proper research will face the losses,If your current Asset on BTC network then diversifying asset should another network like Ether or BNB because coins follow the parent network trends.Also choose worthy coins having great future.

evilgreed

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Considering that you are investing funds that you can afford to lose, then it would be a great strategy to diversify your investments. Just stick to well established coin though, at least for now since the market isn't looking that good yet so altcoins that are still new might not get the chance to pump that much and may even dump. The altcoins that I currently am invested in are poladot, cardano, solana, chainlink and uniswap. Although ethereum looks quite good right now, I want better profits so I choose these altcoins. Good luck man.

Kasabus

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Quote from: isaac_clarke22 on June 14, 2021, 03:07:58 PM

Well diversify but it would be okay to still just go all in Bitcoin.
pooya87 also mentioned that you should diversify but don't get altcoins because you know there are a lot of shitcoins lurking around the market like you don't want end up investing in those even if the cheapness of the price is tempting. Wink

Investing in altcoins are more risky than bitcoin so better focus on bitcoin first. But i suggest if you really want to diversify your investments, you may also add stocks or real estate or any in demand businesses outside the crypto world. Atleast you won't have big fears that if your bitcoin falls, you will have other source of income to run into.

Ethereum is a good catch too but not for short term investment. Bitcoin and ethereum can be very profitable if you chose long term investment.

Fortify

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Quote from: BrotherMencius on June 09, 2021, 02:39:43 AM

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

Quite simply what you're doing with your money is very dangerous. A wise investor would only be placing 5-10% of all their assets into crypto, as it is extremely volatile and relies on selling to someone else at a higher price. We've already seen in the last month the price has lost over 50% of it's value with some claiming that it could drop even further in future. At only 11~ years old it is very untested compared to other assets like commodities and stocks. If you pick the right stocks you can even earn a dividend, so you get back a chunk of your money each year if the company decides to pay out a portion of their profits instead of re-investing. Keep about the same amount in ready cash as well, which might get slightly eroded by deflation but have a plan to use it again when the market crashes in your favorite asset.

isaac_clarke22

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Well diversify but it would be okay to still just go all in Bitcoin.
pooya87 also mentioned that you should diversify but don't get altcoins because you know there are a lot of shitcoins lurking around the market like you don't want end up investing in those even if the cheapness of the price is tempting. Wink

Viscore

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Quote from: S4VV4S on June 13, 2021, 11:17:56 PM

Better to focus on what you have started . If you buy altcoins for other backup investments, it's okay as long as you are ready to risk when playing with altcoins. Because the price is very volatile and if bitcoin is going down, altcoins are going down even worse. So my advice just focus on what you have started.

Bitcoin is already a very good start for newbies. I agree that you should still focus on bitcoin until you finally accumulate a whole bitcoin because even if its highly risk, it won't cause you big losses in the end if you intend it to save for long term.

Diversification is good but if you plan to start it now, it would add more risks to your investment. Think of it later after you already come up making huge profits in bitcoin. Ethereum would be a perfect pair too for bitcoin if you plan for future diversification.

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