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Topic: What are the factors you look into when diversifying your crypto portfolio? (Read 341 times)

hero member
Activity: 1470
Merit: 509
What are the factors you look into when diversifying your crypto portfolio?
I always try to diversify according to the risks. For example, I diversify 50% to those at low risk, 30% to intermediate risk, and the rest to risky ones. In fact, all money should be divided not only in one sector but among others (gold, oil, forex, stock and others). I think that is the right thing, I also suggest it to you.
hero member
Activity: 1426
Merit: 506
In crypto investing, many of us have been taught to diversify our crypto portfolio to reduce risks.
If you are talking about diversification in the stock market i would have agreed but diversifying in shit coins is not that worth, the basic idea behind diversifying is to avoid the risk in a market when different sectors will move at different times during the financial sector and not to stock everything in one so that you will have the profit with every market condition, but in the crypto market it does not work like that, the risk is higher with every altcoin in the market.
member
Activity: 476
Merit: 22
Diversification is a must for both long term holders and short term holders but at the same time you will need lots of research especially if you are new to crypto, do not hold bunch of useless coins and tokens because they will surely disappoint you in the end
hero member
Activity: 2156
Merit: 531
actually there are still many factors that I can write but only one of things that makes me most interesting ,factor that I see is seeing news development of the product ,profitable yes and true diversification must be in right place by the way I haven't read your blog maybe later I learn what you mean
member
Activity: 700
Merit: 27
Sovryn - Brings DeFi to Bitcoin
In crypto investing, many of us have been taught to diversify our crypto portfolio to reduce risks. The idea sounds nice and noble, but if you don’t do it correctly, it’s practically bad. Basically, you will just be giving away free money on a cryptocurrency that might not even take off after its ICO. Worse, if the market goes to the bear territory, many (if not all) of your altcoins will take a free fall. That is not what you really have in mind, do you?
Diversifying your portfolio is only one step in the right direction. To take the second and third steps, you need to become diligent and to have foresight. In this blog, we provide the most insightful information we have gathered to help you succeed at diversifying your portfolio and earn profits out of cryptocurrency investments.

Check out our Blog for more information:
Diversifying Crypto portfolio
ADN Coin
Hm, even if your diversified portfolio consists of shit coins its still Zero results, i believe diversification should consists of solid projects, surely so might fail but there will be high chances of good ROI with solid projects
sr. member
Activity: 1176
Merit: 265
You should have 2 portfolios. 1 for HODL (long term) and 1 for short term speculations to cumulate more coins.

When I choose cryptocurrency to my portfolio, I consider factors like: real use case, the use case should be different than you already have in your portfolio. I mean you have IOT coin, then you go to the diffrent one - supply chains, exchange coins, privacy coins and so on.  Smiley
full member
Activity: 1260
Merit: 100
It is the risk factor, we must diversify our crypto portfolio to reduce the risk.
When we only focusing on 1 coin, we will have big loss if the value of the coin falling.
It is like putting eggs on several baskets so we won't lose all of them at once when something wrong happening.
member
Activity: 364
Merit: 10
Working product, team members, community numbers, exchanges, trading volumes and tons of other factors. But the problem is that nowadays even a scam coin can have all those parameters and leave you with empty pockets.
legendary
Activity: 2814
Merit: 1112
Leading Crypto Sports Betting & Casino Platform
-snip-

Staking is now a trending thing. you need to look for and apply this opportunity. note that even Binance is now very actively developing this area on their exchange
I know that, but the decision to staking is not because of a trend like what happened when the ICO's is trending, but rather the opportunity and also the risk that I feel is smaller compared to trading.
sr. member
Activity: 644
Merit: 260
In crypto investing, many of us have been taught to diversify our crypto portfolio to reduce risks. The idea sounds nice and noble, but if you don’t do it correctly, it’s practically bad. Basically, you will just be giving away free money on a cryptocurrency that might not even take off after its ICO. Worse, if the market goes to the bear territory, many (if not all) of your altcoins will take a free fall. That is not what you really have in mind, do you?
Diversifying your portfolio is only one step in the right direction. To take the second and third steps, you need to become diligent and to have foresight. In this blog, we provide the most insightful information we have gathered to help you succeed at diversifying your portfolio and earn profits out of cryptocurrency investments.

Check out our Blog for more information:
Diversifying Crypto portfolio
ADN Coin

By diversifying crypto portfolio, I believe you mean investing in more than one coin at a time, not just putting all funds in one right. If so, then diversifying crypto investment really helped me a great deal so far, but I do not invest in more than 3 coins at a time, so as to be able to follow up on my investment. What I normally do is, I pick 5 to 10 projects, do proper due diligence for a while, then select the best three to invest in. Also, I don't invest in so many coins at once because if for instance there is token swap, one might miss it if there are so many coins on your portfolio if you can't follow up on all.
hero member
Activity: 2086
Merit: 553
Leading Crypto Sports Betting & Casino Platform
There is no longer any confidence in the new altcoin of its founders where the exchange due to the potential for scams is quite high and when I realized the choice was only in bitcoin which was very controlling the current price turnover, of course we were pretty sure that bitcoin was very potential among other altcoins. then I allocate everything to bitcoin and leave it for 5 years as savings
legendary
Activity: 1526
Merit: 1179
Staking is now a trending thing. you need to look for and apply this opportunity. note that even Binance is now very actively developing this area on their exchange
I'm hesitant when I see an exchange offer staking services because you know that they hold the coins for you and you can only hope they don't mess up somehow or that they don't get hacked.

I'm personally looking forward to Ethereum to go POS as that is one of the main reasons I started buying it. It's something a lot of people are focusing on and that for a good reason obviously. I however don't think it will happen any time soon.
sr. member
Activity: 1526
Merit: 420
Diversifying in cryptocurrencies is not really diversifying, as altcoins are all tied to bitcoin price.
If bitcoin fall, all of them will fall.
It is true and make sense, if this same kind of volatility happens to stock market for example if the dollar is crashing all stocks will plummet too. Only few cryptocurrency moving upward independently during bear season it’s either pump or progress.
sr. member
Activity: 1722
Merit: 309
If you can track your investment everyday or even a week, we could see what it happens. There is no reason for holding coins when we can't see a profit on it. And of course, diversifying is very suitable for that case otherwise, we are holding for nothing and a waste of time either. Diversifying is the last option to take when we saw there are no chances that our coins will grow, it was a sacrifice and losses to our part but we are doing this to make it better.
full member
Activity: 770
Merit: 100
Oikos.cash | Decentralized Finance on Tron
In addition to reducing the risk also after some time I learned there were other tokens/coins that also had the potential to provide profit.

If my investment in tokens/coins has been profitable, usually I will also move my investment to another or other method such as staking.

Staking is now a trending thing. you need to look for and apply this opportunity. note that even Binance is now very actively developing this area on their exchange
legendary
Activity: 2814
Merit: 1112
Leading Crypto Sports Betting & Casino Platform
In addition to reducing the risk also after some time I learned there were other tokens/coins that also had the potential to provide profit.

If my investment in tokens/coins has been profitable, usually I will also move my investment to another or other method such as staking.
sr. member
Activity: 812
Merit: 262
In crypto investing, many of us have been taught to diversify our crypto portfolio to reduce risks. The idea sounds nice and noble, but if you don’t do it correctly, it’s practically bad. Basically, you will just be giving away free money on a cryptocurrency that might not even take off after its ICO. Worse, if the market goes to the bear territory, many (if not all) of your altcoins will take a free fall. That is not what you really have in mind, do you?
Diversifying your portfolio is only one step in the right direction. To take the second and third steps, you need to become diligent and to have foresight. In this blog, we provide the most insightful information we have gathered to help you succeed at diversifying your portfolio and earn profits out of cryptocurrency investments.

Check out our Blog for more information:
Diversifying Crypto portfolio
ADN Coin


This can done easier when you have a lot of funds just like any investment. Yet you must choose wisely which coins you will add in your portfolio. Think of you have several bunker locations and when the apocalypse happen, you will have different choices to pick, each with various kind and amount of supplies. Personally, I choose coins with strong position in the market. Those coins have good trading volume.
legendary
Activity: 1666
Merit: 1030
I am always holding some Bitcoin or Ethereum in my wallet firstly. Then I pick the projects that I believe to be successful in the future. These can be either 3 or 4 in number. The volume of these assets is really crucial and I do believe that team is another thing I should consider before investing in. I am holding %20-30 BTC or ETH and others are altcoins.
hero member
Activity: 2590
Merit: 585
Leading Crypto Sports Betting & Casino Platform
Diversifying your portfolio is only one step in the right direction. To take the second and third steps, you need to become diligent and to have foresight. In this blog, we provide the most insightful information we have gathered to help you succeed at diversifying your portfolio and earn profits out of cryptocurrency investments.
Diversification is very necessary, especially in this cryptocurrency place that there are lots of uncertainties about projects as a result of weak team or weak product, so when I am diversifying, I don’t do anything that special other than looking out for projects that have real use case, and projects that I can really testify that their team is very much more reliable and can move the project up to the future even when the market is in bear.

I know that so many people believe that the bear market is over, I don't think the bear market is over, the reason why we are just able to make money from some coins that we are presently trading with because of the work they are doing and what they are building down which is making the value of their coin to appreciate no matter how little.
sr. member
Activity: 756
Merit: 257
Freshdice.com
In crypto investing, many of us have been taught to diversify our crypto portfolio to reduce risks. The idea sounds nice and noble, but if you don’t do it correctly, it’s practically bad. Basically, you will just be giving away free money on a cryptocurrency that might not even take off after its ICO. Worse, if the market goes to the bear territory, many (if not all) of your altcoins will take a free fall. That is not what you really have in mind, do you?
Diversifying your portfolio is only one step in the right direction. To take the second and third steps, you need to become diligent and to have foresight. In this blog, we provide the most insightful information we have gathered to help you succeed at diversifying your portfolio and earn profits out of cryptocurrency investments.

Check out our Blog for more information:
Diversifying Crypto portfolio
ADN Coin

Everything goes down to the planning stage of course. If you don't prepare yourself in the first place, you will doom to fail in the trading industry. Just like any field of work, this industry can have toxic environment so preparing yourself mentally and socially is a must. Also, being humble helps a lot to build your processional character in this business. Never letting the emotions get you is difficult most of the times but even simple breathing can help you relax. It is a good read btw, OP.
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