Topic: To diversify or not to diversify... - page 3. (Read 674 times)
First of all, I think your investment in Bitcoin is the right choice. Bitcoin is a very good means of storing value. It is very suitable for long-term investment. Almost anyone who can hold it for more than a year will get income. If you still want to invest For other currencies, from the perspective of stability, I do not recommend that you invest in altcoins. It is best to use mainstream currencies. Most of the funds should still be placed in Bitcoin. If you have spare funds, you can invest in some other currencies in the short term. Optimistic cryptocurrency.
I wouldn't diversify first because I want to make sure that I will be getting much profit as much as possible in a guaranteed to profit currency like bitcoin and after that, I can slowly split my capital and diversify so I can make money even if the other investment is on the red.
One reason why some users are diversifying their investment is that when they want to profit by staking coins. This way they don't have to trade and risk but just wait for the tokens to come into their wallets. This I think is a smart thing to do because it's less risky or so they think but I guess this are for long-term holder's plan. I also have the same reason for diversifying but it's always going to be good to have BTC that can be liquidated faster.
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Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).
You are in the Bitcoin forum, I am afraid that most of the people here are into Bitcoin only or Bitcoin maximalist.Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).
But if I will answer your question, nothing is wrong with buying other coins besides Bitcoin, I also own other altcoins but overall, I have the biggest allocation on Bitcoin.
That is good investment mate. Bitcoin is the top 1 coin in crypto. It could hit $60k again. However, you should also consider some potential and in the top coins such as Ethereum and Binance.
Ethereum and Binance are included to very promising investment as per today.
For me whether you diversify or not, whatever your decision it is good.
Ethereum and Binance are included to very promising investment as per today.
For me whether you diversify or not, whatever your decision it is good.
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.
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.
You're asking about investing in a forum, where the majority of people are bitcoiner nutjobs.
Diversification is like an insult to their religious beliefs.
In truth , however altcoins have a much bigger upscale than bitcoin,
one example was Doge , you would have earned more holding doge since the last peak than bitcoin.
* You do have to sell to lock in the profits. *
But all crypto is a gamble, btc included.
It can easily drop back down below $20K and stay there for a few years.
Not the place, I would be storing money that I planned to use to buy a house.
I also think you need to reevaluate if the goals you set are practical,
it seems like you are thinking , that you will get 1 BTC and it will go to $1 million ,
it might, it also might drop to $10K.
Also prices are not currently cheap, prices are still way higher than they were just 1 year ago,
so looking at the charts is a good idea, and the best idea is to talk over your investing choices with your wife,
not a bunch of random nutjobs in a bitcoiner cultist forum.
If you are already owning around 0.4BTC and this is for long-term investment it is better to hold them, not converting to altcoins right now.
However, if you have some money, diversification may be a good idea. Yeah, it may be true that altcoins will always depend on Bitcoin. But sometimes, there is also an altcoin season where the price of altcoins can go up so significantly and get more profits from it. However, investing in altcoins will be riskier than BTC.
If you are really ready, better to choose the top altcoins, at least ETH, and also BNB if for long-term investment.
However, if you have some money, diversification may be a good idea. Yeah, it may be true that altcoins will always depend on Bitcoin. But sometimes, there is also an altcoin season where the price of altcoins can go up so significantly and get more profits from it. However, investing in altcoins will be riskier than BTC.
If you are really ready, better to choose the top altcoins, at least ETH, and also BNB if for long-term investment.
actually there are many benefits that you can get by investing in bitcoin but there is no harm in trying with altcoins such as etherium, doge and binance because I saw in pump 2020 and the increase in altcoins was so significant and remember this must be long term if you want to trade then I hope you can see and read technical price charts/carts so you can get profit in the short term but this is very risky
If you are satisfied with your current bitcoin holding, Diversifying it doesn't guarantee you getting less risk since bitcoin pulls the majority of major altcoins in the market when bitcoin has big movements. But if bitcoin pumps, You would most likely get much more profit on altcoin than bitcoin. If your planning to go long-term, I would suggest just stack up BTC as much as you can and extend your bitcoin holding goals. If you're up for a high-risk high reward, after finishing your goal you can buy some major altcoin to hold.
I'd put most of the investments in Bitcoin in such a situation. It seems that you're looking for long-term investments, and in this case, Bitcoin is much more reliable and promising, than alts. However, it can't hurt to diversify, just in case. The thing is, you can invest a really small amount of money ($50-100) and buy tons of various altcoins that are very cheap now but can become valuable in the future. If you invest $50 in Bitcoin, in years, even if the price increases a lot, you won't make much of a profit from that, but with alts..there is a possibility.
I think that a smart decision is always to diversify assets, no matter how attractive they seem. Judge for yourself - the risks that you put into such an investment grow when it comes to one asset, whereas if you distribute this load in different "baskets" the risk will decrease and the expected profit will be comparable. So I think the wisest thing to do is to have a diverse asset portfolio.
When investing, I always believe in the term never keep eggs in one basket, because if there are cracked eggs there are still eggs in the other basket.
This means that if we invest in some coins it is much safer, even though we know only Bitcoin is the best crypto, does not mean we have to invest
in Bitcoin only. Why is the capital we use not used for investment in some popular altcoins as well. Divide the capital we have in several coins,
more generate a much more maximum profit in my opinion. So I agree we have to diversify the capital we have in some coins.
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 would highly suggest that you wait and see, so for bitcoin i am sure that the investment that you made will defeintly pay off in the future and by the future maybe in a few months or so you capital will be doubled, so i think you should just focus on bitcoin since it is currenty hot and will most likely to net you short and long term investment, as for the etehreum and the other cryptocurrency i think they will most likely fall beheind and even if the pioint of diversifying is to protect you from drops it won't be as good as 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.
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.
Your choice but always remind off that nothing is guaranteed into this market thats why you should still need to be aware of the risk involved because thereSince 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.
would be no assurance that you would able to make money in next 10 years for you to be able to buy your house or had insured your retirement.
If you do tend to diversify then its your choice because its your money and you are the ones who would really be making out the last decision towards it.
but if were to say that diversifying is always been a good idea although depending on which coin you are tending to buy on.
I think that a smart decision is always to diversify assets, no matter how attractive they seem. Judge for yourself - the risks that you put into such an investment grow when it comes to one asset, whereas if you distribute this load in different "baskets" the risk will decrease and the expected profit will be comparable. So I think the wisest thing to do is to have a diverse asset portfolio.
It doesn't make too much difference diversifying in crypto universe, because bitcoin drives everything here. Altcoins follow bitcoin's fluctuations upside and down. Some people like to hold altcoins, because they might show higher increasement percentage when compared to bitcoin during a short period of time, but it's more risky to hold them anyway. Bitcoin is the safest crypto currency to invest and I wouldn't put more than 20% of my portfolio in altcoins. To diversify funds efficiently you need to check another kinds of investment like real estate and stocks markets.
I personally prefer diversifying the investments over multiple opportunities including stocks, real estate, bonds, and even golds. Regarding cryptocurrencies including Ethereum, Dash, Tron among few emerging cryptos apart from Bitcoin can turn out to be good. We can't deny as of now that if other cryptos are rising, Bitcoin has to rise, but nowadays the price drop is gradually very large regarding Bitcoin, and less for few coins which means diversifying will help for sure.
My rule when investing is to not put whole money into one thing, so I would like to suggest you diversify your investment. Although bitcoin price is low, maybe don't put all your money there, just add up your investment a bit, and try to spend the other half into other coins. ETH is such a good choice too, and there are a lot other altcoins that are quite good for investment. Just need to be careful not to buy shitty coin and lose your money though.
The purpose of diversification is to reduce risk. If you want to diversify, buy a stock index, or some real estate, or precious metals, or commodity futures, or something that is not crypto. Buying other crypto isn't really diversifying. They largely move up and down right along with Bitcoin. Why hold a weaker, less trusted, less used crypto currency?
I would suggest to update your target number to maybe something like 10 BTC before re-examining anything else. 1 BTC is a good goal. 10 is better. Some people won't stop until 100. The exact number is up to you, whether it's a round bitcoin number or the fiat equivalent or the bitcoin equivalent of a round fiat number (like say $1m USD or about 27 BTC).
There are countless stories of people who diversified into 10 different altcoins in the past 5 to 10 years, but would have made out better if they just stuck to bitcoin over that same time period.
Of course, if you had invested into the beginning of some of these altcoins, for example, by buying into the ETH ICO in 2014, you'd get 2500 ETH for every 1 BTC. If you got 0.4 BTC and joined the ICO back in 2013~2014, you'd have 1000 ETH right now if you also hodl it to today.
But today is different and most people wouldn't have known which alts or coins or tokens would survive and do well in the future.
Bitcoin, you know, for sure, that it will be around for at least another 10 to 20 years, perhaps longer. The longer it sticks around, the longer its possible lifespan will be.
Buy bitcoin and only bitcoin every month or every week for the next 10 years and you'll do much better than plenty of people.
There are countless stories of people who diversified into 10 different altcoins in the past 5 to 10 years, but would have made out better if they just stuck to bitcoin over that same time period.
Of course, if you had invested into the beginning of some of these altcoins, for example, by buying into the ETH ICO in 2014, you'd get 2500 ETH for every 1 BTC. If you got 0.4 BTC and joined the ICO back in 2013~2014, you'd have 1000 ETH right now if you also hodl it to today.
But today is different and most people wouldn't have known which alts or coins or tokens would survive and do well in the future.
Bitcoin, you know, for sure, that it will be around for at least another 10 to 20 years, perhaps longer. The longer it sticks around, the longer its possible lifespan will be.
Buy bitcoin and only bitcoin every month or every week for the next 10 years and you'll do much better than plenty of people.
It is up to you, really. If you wish to continue investing in other cryptocurrencies or alternate coins, it is you who will decide your outcomes no matter how the market can go really, because if you watch and study market trends it will be a big help for your investing and market decisioning skills. Typical big time decisioning is what I see in this situation. You might as well get help from the community, but the best thing is for yourself to involve in studying as it will significantly save you time and effort.
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