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.

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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.

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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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Quote from: UserU on June 13, 2021, 10:08:34 PM

Quote from: Luqman on June 13, 2021, 06:18:53 PM

And for your 0.4 BTC, I don't think that you need to convert it to altcoins.

I don't think he plans to sell his Bitcoins. Rather, just put more funds into alts.

Put more funds into altcoins can be a good idea, but I think he can use 0.1 btc to convert it to altcoins. In that way, he does not need to add or deposit more money and he can use that money for other things. I prefer to do that because that can reduce the risk by using more money in crypto investment. But all in all, he can decide by himself and I am sure he will know what he should do if he wants to invest in crypto.

Lakai01

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Quote from: Luqman on June 13, 2021, 06:18:53 PM

Actually, diversification is a good way to minimize the risks of losing your money when the price is down. But, of course, you must be careful to choose which coins to buy after having funds later. Never buy the coins based on the hype market.

I agree with you about diversification, it is important so that a falling investment is cushioned by other investments.
Unfortunately, this only works to a very limited extent with cryptos. BTC drives the market, if it falls, the altcoins fall as well. As an investor, I must therefore see my entire crypto portfolio as a unit and must not forget or forego other diversifications (real estate, stocks, ...) - stablecoins of course left out.

S4VV4S

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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 .

UserU

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Quote from: Luqman on June 13, 2021, 06:18:53 PM

And for your 0.4 BTC, I don't think that you need to convert it to altcoins.

I don't think he plans to sell his Bitcoins. Rather, just put more funds into alts.

Luqman

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I appreciate your efforts to have more Bitcoin with your wife.
And for your 0.4 BTC, I don't think that you need to convert it to altcoins.
Actually, diversification is a good way to minimize the risks of losing your money when the price is down. But, of course, you must be careful to choose which coins to buy after having funds later. Never buy the coins based on the hype market.

sapnu

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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.

There's nothing wrong actually about investing on bitcoin alone but in reality, diversifying your investment could make you earn much better profit. It is not a smart move to depend on bitcoin alone neither on any altcoin alone, you should still find some other investments that could help increase your profit. There will always be a possibility that bitcoin or any other altcoin's value will go down so make sure you always have your back up plan or an investment that will save you on the time comes but still be careful on choosing which one or more investment you'll pick, pick always the most competent one.

Slow death

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this:

buying bitcoin and then buying altcoin is not diversifying investment. All of this: bitcoin and altcoin are cryptocurrencies with only 1 difference which is: bitcoin is a safer investment compared to altcoin.

if people want to diversify investments then they should invest in something like:

1 - buy bitcoin and altcoins

2 - invest in real world things like investing in real estate or land or cars or gold or collectibles that have more value as the years go by

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Quote from: Yatsan on June 12, 2021, 06:49:53 PM

Diversifying your funds into various cryptocurrency is a good choice to be made although focusing into Bitcoin seems to be enough because of its value, popularity and of course credibility, but Bitcoin is not the only existing cryptocurrency in the market and there are still lots of crypto to explore that also have great potential and are worthy for investment of course. You just have to be picky on choosing the crypto that you will do an engagement to somehow ensure you are going to gain profit and of course for the sake of your fund's safety as well.

By now, I think they already know that there are other good alts worth investing like ETH and BNB. For me, it is better to diversify your portfolio especially if there are other good options that you can get a hold of. Since they are pretty beginners in this market, it is better to check first the top alts in the market and check if it will suit their taste. But it is always better to diversify your portfolio so you have different options to take in case something goes wrong with one.

traderethereum

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You can still focus on bitcoin, but diversifying will be better to have more investment in crypto.
Ethereum or BNB can be the next investment, but always try to buy at a low price.
If you want to invest $100, maybe you can use the portion 70:30, 70% for bitcoin investment, and 30% for ethereum and bitcoin, but I am sure you will know how much money you will allocate invest in crypto.
The important thing to invest in a crypto is not to panic and have patience because investing in crypto can not always give you profit in the short term.

Sithara007

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First you need to compare the altcoins with Bitcoin, in terms of usage, adoption and acceptability. Take the case of any altcoin (include ETH, ADA or BNB) and you will find that BTC is far ahead of them in terms of all these parameters. On top of that, none of the other coins can offer the protection offered by the PoW algorithm of Bitcoin. The amount of mining hash power which Bitcoin posses right now means that it is near impossible to commit a 51% attack. The other coins are not that secure. In the end, the decision is up to you. Decide whether you want to sell some of your BTC (which seems to be fairly valued) in exchange for some of the overpriced alts.

manggis97

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Diversify of investment is important, because alot of others instrument of investment that have lower risk than crypto like Gold and bluechip of stocks. Crypto investment for 10 year, its enough only BTC and take others instrument of investment. If we have times, we can make compounding by learning the trend of global market, so we can predict when good times to enter to crypto, stocks, gold and others asset instrument.

Shasha80

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Everyone can certainly determine the best for himself, we just need to ask ourselves that. If dividing the funds we have according to us is good,
there is nothing wrong with doing it. But if we feel that it is enough to invest in Bitcoin, it is our choice. Sometimes what is good for others is
not necessarily good for us. So there is no need to divide our funds when investing in cryptocurrencies if we don't want to do it, after all I have
found some successful investors who only invest in Bitcoin. Although I prefer to divide my funds into several cryptos, I respect and don't blame
people who only invest in Bitcoin.

Yatsan

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Diversifying your funds into various cryptocurrency is a good choice to be made although focusing into Bitcoin seems to be enough because of its value, popularity and of course credibility, but Bitcoin is not the only existing cryptocurrency in the market and there are still lots of crypto to explore that also have great potential and are worthy for investment of course. You just have to be picky on choosing the crypto that you will do an engagement to somehow ensure you are going to gain profit and of course for the sake of your fund's safety as well.

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Quote from: BrotherMencius on June 09, 2021, 06:11:27 AM

Thanks for everyone's input, I really appreciate it.

Honestly, I kinda want to just focus on BTC. It seems like the best bet to get to where we want to be in the long run. Maybe after we've got 1+ BTC it'll be worth re-examining.

That's a good choice.

Once you reach 1 BTC+ then it's all on you if you want to go to the next step which is 2 BTC or just 1 BTC + another good altcoin. It's just about stepping up and choose whatever you're comfortable and worth taking the risk.

In the end, it's your portfolio that you're trying to grow.

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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.

You have already holding a big chunk of Bitcoin and that is more than enough if bitcoin break 100$k this year or the next.

Best to diversify mate , because that is the only way that you can extend profiting in case Bitcoin run or altcoin run comes whos first.

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

~

Investors tend to diversify because they want to lessen their risk of losing all of their money.
Diversification is good but overdiversifying your capital isn't good too so at least learn to balance and know where to invest your money.

In your case, 0.4 BTC is a big amount already. Diversifying is a good thing if you have a spare money. I would suggest to at least diversify into other coins but don't forget to put some in Bitcoin. If you are asking cryptos only then putting some in top altcoins would be good like Ethereum or ChainLink or Cardano. Now if you thought of investing outside crypto to diversify your portfolio then investing in real estate will be good too

.

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

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

Well for me diversifying is always a good decision, but in the world of crypto, bitcoin is the most reliable coin to invest in specially during dip.

Majority of alts are just following the movement of btc, so as you notice if bitcoin face a minor or major dump most alts are also doing the same. However it doesnt mean alts are not good to hold, its just that bitcoin is less risky compared to them.

It would be better to set a target amount on holding bitcoin (lets say 1 btc since you already have 0.4) before thinking of buying alts. Eth is one of established altcoin and trusted as well of many investors so if you ever consider to diversify, eth is one of the good option.

jjdub7

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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.

In general, it is always good to store / invest your money in several different places. This reduces the chance of losing everything at once in a market crash.

I personally prefer a more diverse portfolio, but still in moderation. In my opinion, 5-6 to a maximum of 10 coins is a good option.
And yes, if you have decided to invest in altcoins, according to
Ethereum is a must for your portfolio. You can allocate your budget as follows: 60% BTC, 30% ETH and 10% in other altcoins.

maxreish

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Diversifying is the best choice but make sure to choose those altcoins that are worth and potentially gives massive profits. Having a good research before buying those altcoins that you will gonna put in your basket is very significant if you plan for a long term hold.

Or you can still accumulate more bitcoin and buy few altcoins at the same time. As we all know bitcoin will not fail you if you hold it patiently.

Lakai01

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Basically, diversification is used to reduce the risk of losses. However, this only works to a very limited extent in the crypto sector, as the BTC price influences the market - if the BTC price falls, the other coins also fall, often much more strongly.

Altcoins in particular, however, offer the potential for enormous price jumps if you look at the price trend of Cardano over the last year, for example. A x50 like Cardano since last year will most likely no longer be experienced with Bitcoin, as the market capitalization is far too high for that. However, altcoins also carry the risk of disappearing completely from the scene again. Check out the top 15 from the 2017 bull run for this:

https://coinmarketcap.com/historical/20171231/

If you compare these with today, you can see quite quickly that many coins could no longer approach their former high.

Mikayla Buckley

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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.

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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.

electronicash

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

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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.
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.

fileo

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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.

TangentC

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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.

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.

Rengga Jati

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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.

fara_buduk

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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

abel1337

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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.

just_Alice

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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.

MCobian

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Quote from: Gamerholic on June 09, 2021, 03:59:04 PM

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.

Shenzou

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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 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.

Oilacris

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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.

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 there

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.

Gamerholic

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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.

uneng

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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.

dmamigo

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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.

nightxglow

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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.

DannyHamilton

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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?

Dabs

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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.

genolica

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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.

leea-1334

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Wow that is a lot of Bitcoin for a beginner so I should say congratulations:)

Keep buying at your current rate and do not look or get tempted. Put aside money you can lose, but not all your savings and you will be fine. Do not try predicting,,, just dollar cost and you will be happy.

I do say Ethereum also, but still mainly BTC!

worle1bm

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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.

If you are planning to hold for long term and already owns 0.4 btc at this time then further btc investment in small proportions will be better for you.Diversification is for investors who have some huge funds and want to invest them all and build their portfolio of coins so they need to diversify because when they suffer losses it's divided like some can be in gain while others in loss so it can be counterbalanced.But in your case btc is the only coin and you don't need to worry about it and go on with same pace and you will having more than one btc soon and profits will be huge.Moreover many altcoins follow Bitcoin rally so it's no fun for them and there are many shitcoins available in the market that can attract you but no returns.So stick with btc only.

amishmanish

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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.

Thanks for sharing and wish you guys success for your goals. I mean it dearly because someone close to me has similar goals. You made a post here too. Hope you read the answers.

When someone comes on the forum with such an honest goal putting in hard-earned money, it is always tricky as to what advise one should give. Hence, if you are only going by advice, nobody in their right minds would suggest anything other than BTC. As everyone already explained, this market lives and moves with BTC. The moment you open yourself up to Alt-coins, it can quickly turn into a goose-chase many don't recover from. There is a whole industry of influencers and shills out there trying to convince that everyone can make a 100X. (which is simply not possible).

Hence, if retirement is your goal and you have time, another way is to get into earning crypto by utilizing your existing skills. Once you start earning, that gives you slightly more freedom to experiment and take the risk to "diversify". This will need time and focus of course but it is possible. Like everyone else, I would of course advise against any diversification into Alts with actual fiat savings.

If you want more discussion on this, feel free to ask in PM.

yazher

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If that's your case then it is good not to take anything from your bitcoin since it's not really that big amount. Anyway, it's not too late if you want to diversify your current crypto assets to the other cryptocurrencies out there. But you need to consider that some of those coins won't recover after their price has crashed and the only thing you can do is sell them without earning anything or most likely you will lose some money due to the kinds of coins you have chosen. so you better take your time and choose wisely which coins are good this year and avoid those coins that have no development news or something like that.

buwaytress

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To put it another way, diversifying your assets usually means branching out to another new class of asset. So if you're thinking of adding crypto to your portfolio, then having Bitcoin is enough. Like pooya87 says, altcoins historically have had a pattern of following Bitcoin's trends. Bitcoin IS crypto, despite everything else out there, how crypto lives or dies is inexorably tied to how well Bitcoin dies.

Well done too, by the way. And keep at it. Ignore the noise en route to your goals.

Sanugarid

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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 it much better if you will allocate some of your savings not just in BTC but to other promising alternative coins available in the market. By doing so, it will minimize the risk and helps you get more stable returns. Moreover, no one knows if BTC will recover from massive dips and how long would it take to recover. So to avoid massive losses on your part, don't put all of your money in one asset.

BrotherMencius

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Thanks for everyone's input, I really appreciate it.

Honestly, I kinda want to just focus on BTC. It seems like the best bet to get to where we want to be in the long run. Maybe after we've got 1+ BTC it'll be worth re-examining.

virtualdn

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It depends. I'm all in BTC now (had other coins before) but as risky as it may seem I also have more peace of mind, I know it will be huge in the future and that's fine for me. Everybody to their own but whatever you do you will eventually turn to BTC in the end. I know in the long run I'm a winner so no worries at all.

Obito

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Quote from: raidarksword on June 09, 2021, 03:34:08 AM

Better stick of what you have started for now and with the amount of BTC you have mush better to add more while bitcoin is still not recovering because the dip is not forever, time to time it will recover. Focusing one goal at a time is the best strategy.

That's what I would do to, focus on only one first that guarantees to make you money and then you become successful enough in that part, that's when you slowly diversify your portfolio but always do your own research first before anything else, you don't want to be stumbling on a really bad coin that will only bring you misery.

Lucius

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I agree with what pooya87 wrote, and since OP already has 0.4 BTC, it might be better to keep investing in it than to start experimenting with some altcoins - because their price always depends on the price of BTC.

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

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.

It's a long-term investment, and you should realize that you take a big risk if you put all your savings in the same basket - no one can know what will happen to BTC in the future. In addition to that risk, you have extra worries about how to secure your digital assets - and be sure not to choose a custodial solution or anything online where you don't have 100% control over your private keys. Not only do you invest in a very volatile asset, but you have to learn how to be your own bank - preferably one that has the highest security standards.

xSkylarx

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

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

Ethereum is a must-buy if you have money to invest in long term. It is really better to diversify rather than focusing only on one cryptocurrency, this way you can maximize your potential profit in the long run. Some of them will be x10 now in few years, others can give you x100 if you belong to those early adopters of that coin. Just look at the price of the top coins now like BNB, ADA, and ETH few years ago, they were really cheap so people who have bought them at that time must be rich now.

crwth

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First of all, congrats on owning BTC. Not a lot of people have HODL'd with everything that's happening in the crypto universe. I think now is the time to own more. Every time when people are in fear of buying an asset, it's the best way to take advantage of the SALE. It's best to buy this asset that could be worth HODLing in the long run. Which every one of us here feels.

I'm not a financial advisor of any sort but it's still worth looking into because there are more opportunities to get out there. If your goal is to HODL only and not make any more trades, I think the top coins would be worth it like ETH. If not, then you could just go with the current trend.

raidarksword

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Better stick of what you have started for now and with the amount of BTC you have mush better to add more while bitcoin is still not recovering because the dip is not forever, time to time it will recover. Focusing one goal at a time is the best strategy.

jossiel

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Since you two guys have started, I advise you to stick first with bitcoin and create a goal like owning up to or more than 1 btc.

But if you think that you are ready to own another crypto and you have planned it well, you chose a good altcoin. Ethereum is considered another good crypto to invest but IMO, stick first to bitcoin.

Lorence.xD

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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.

Might want to focus on your main investment first before diversification because you want to learn more about it. I myself focus on bitcoin only because I want to go all in first on something that is guaranteed to go big rather than gamble with altcoins that will probably go down really bad.

pooya87

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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.

BrotherMencius

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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.

Topic: To diversify or not to diversify... (Read 674 times)