Author

Topic: What are the factors you look into when diversifying your crypto portfolio? (Read 358 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: 1540
Merit: 420
www.Artemis.co
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: 2674
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.
member
Activity: 434
Merit: 10
www.thegeomadao.com
I do not have any special strategies to cut loss by diversifying crypto portfolio except for some simple rules. First of all, I do research rigorously so as to find whether the crypto project is legit or not. Mostly I hear about the project from opinion of others on the internet and reach decision on my own. Team, technology, whitepaper, delivery are some of the factors I look into. 
member
Activity: 490
Merit: 19
If team of any project is not showing sign of following their roadmap i will dump for other coin
If the coin has no better trading volume on exchange i will dump for better coin
If teams are been shady or don't want to be open on their social media channel i will give up on such project and move to other
Its always safe to stay updated with every coins and tokens you have in your portfolio in case any thing want to go wrong
member
Activity: 518
Merit: 28
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
I have sold almost all my coins and tokens in my portfolio because i later realized that they aren't good enough, i dump few for bitcoin and others for very good altcoins that have better products and companies supporting them, clear foundation is among,i like projects that have a company based products that have been in existence even before they decide to release their coin or token
sr. member
Activity: 686
Merit: 250
The major factor I look out for when diversifying my crypto portfolio is how safe the option is and how legit the program seems to be. The concept behind it and the idea it intends to sell. Bitcoin seems to be the safest option as many altcoins especially those newly introduced to the  market seem to be scam. Only a few other altcoins are worth diversifying into.
jr. member
Activity: 56
Merit: 1
I've given a lot of thought to diversifying, but at the end of the day, altcoins do what Bitcoin does, only at a smaller scale. Diversifying made sense in 2017 if you managed to run into an ICO that wasn't a scam. These days, however, you might as well put 100% in BTC. That way, you can at least get a decent profit if you do it right. And if you are into hodling, BTC is definitely the only coin where it makes sense, since altcoins don't exactly have a brilliant track record when it comes to staying relevant for more than a year or two at a time.
sr. member
Activity: 1092
Merit: 254
The most important is the quality of that assets' team in my opinion, If i am buying something, I have to research who I am investing in. Second, its token economics is really important so I can consider if it can give me profit or not. And finally I do check its volume exchanges, if it has a nice volume, I do not hesitate to buy that asset.
sr. member
Activity: 756
Merit: 251
Diversifying in cryptocurrencies is not really diversifying, as altcoins are all tied to bitcoin price.
If bitcoin fall, all of them will fall.

I just talked about this a few days ago:

It makes no sense to "diversify" in assets which are totally correlated. As mentioned above, you will only increase your risk and volatility.


One thing you can be sure. BItcoin volatility is much lower. So, if you want to be protected, the best is 100% BTC. as you can see above, all alts are falling 30% or more, while bitcoin "only" -20%.

This is well noted. However, a lot of altcoin investors which include myself of course are considering the fact that it is much easier for an altcoin to make a x2, x3, or up growth as compared to Bitcoin. It is easier, for example, for Ethereum to climb to $340 than for Bitcoin to go as high as $16,000. Litecoin can reach $100 much sooner than Bitcoin reaching $15,000 most probably.

Another point would be that investment in altcoins is still one of the best ways to increase your BTC equivalent. HODLing BTC will keep your BTC at the same amount that you have them previously. It is not growing at all. Whereas if you invest in an altcoin, a 0.1 BTC could become 0.2 BTC in a matter of weeks or months. That's the time you convert into BTC and wait for another good entry price again for the altcoin.
legendary
Activity: 2352
Merit: 6089
bitcoindata.science
Diversifying in cryptocurrencies is not really diversifying, as altcoins are all tied to bitcoin price.
If bitcoin fall, all of them will fall.

I just talked about this a few days ago:

It makes no sense to "diversify" in assets which are totally correlated. As mentioned above, you will only increase your risk and volatility.


One thing you can be sure. BItcoin volatility is much lower. So, if you want to be protected, the best is 100% BTC. as you can see above, all alts are falling 30% or more, while bitcoin "only" -20%.
sr. member
Activity: 756
Merit: 251
It is not really that complicated. It does not mean that because you need to diversify your portfolio you will have to choose among the thousands of other altcoins, ongoing IEOs, and others you can possibly invest on. My idea of diversification is limited to the existing altcoins which have already proven their worth and contribution in the crypto development. That would actually make your options very limited, up to a hundred choices most probably or even half.
member
Activity: 490
Merit: 10
I coin that I would add into my portfolio should have: woking product (not an MVP or a whitepaper), a serious, real team members, solid exchange listing and a big community. 40 percent of my savings are now in BTC and another part in altcoins.
sr. member
Activity: 1540
Merit: 282
tBTC - https://dapp.tbtc.network/
I'd actually think its a lot safer not do diversify.

BTC > everything else

There is no one shitcoin that actually achieved something. There is no future for them, why invest in them then ? Buy BTC, be safe.

Completely agree with you, right now is not very wise to diversifying our portfolio into altcoin because the altcoin is in terrible shape.
no matter how good we are managing the strategy if the price keeps moving down. it is completely waste, it is better to find the safest choice than risking it all.
and Bitcoin is a solution for now. Diversifying our portfolio works fine when the market moving up and down, but now the market is moving down completely.
there is no reason for us to diversify our portfolio if the altcoin is drowning.
legendary
Activity: 1878
Merit: 1038
Telegram: https://t.me/eckmar
I'd actually think its a lot safer not do diversify.

BTC > everything else

There is no one shitcoin that actually achieved something. There is no future for them, why invest in them then ? Buy BTC, be safe.
hero member
Activity: 1666
Merit: 753
People get the idea of diversification twisted somewhat.

Simply put, just because you invest in more coins doesn't necessarily mean that your portfolio is diversified or is all of a sudden a lot safer.

You'd have to look at a wide range of factors. Risk-return profiles of each coin (small, mid, or large cap?); sector in which the coin operates in (is it ICO'd, is it a token, is it a coin?); and the geographic location of the coin's development team.

Only if you address all of these factors will you be able to reduce risk. If not, you might as well just pick a single coin and run with it.
member
Activity: 663
Merit: 10
https://streamies.io/
This is really very important knowledge for new people like me. Although I have been involved in the crypto market since 2018, my trading knowledge is still very low and continuously failed to trade.
After your post, I realized how to manage my risk and curb greed. This article is very helpful and thank you.
full member
Activity: 1820
Merit: 107
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:
ADN Coin Official Blog
ADN Coin
At first let us remind ourselves that investing in cryptocurrency was associated with risk of losing money! Thats why we should always aware of that since anything can happen,diversifying the crypto investment to the more stable and quality coins or tokens in the market will lesser the risk and thats what im doing today.
newbie
Activity: 37
Merit: 0
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
Jump to: