Topic: What is your diversification strategy? (Read 669 times)

The best way of spreading your investment in cryptocurrency is 2 not totally all your investment in one particular coin like bitcoin so extend it to other coins like Shiba Inu Dogecoin, Litecoin and other coins you know that will be profitable and will survive in bearish market because some of the coins doesn't survive it.

But in real estate the amount you will get is very huge right? just being curious about real estate sorry. Also, altcoins is still good we just need to make a research for it and we need to see  the chart before investing, read whitepaper as well as their social media account so you won't be bother if anything happens with the our crypto market.

What is the pressure from your real estate investment? I find real estate investing less stressful than investing in bitcoin or the stock market because they are less volatile. If talking about the safest and most profitable assets, in my opinion, real estate is still the top, but because real estate business requires a large initial capital, not many people can do it.

Bitcoin is the most profitable investment due to its volatility but it is also the riskiest investment, too dangerous if you put all your assets in bitcoin. You are thinking of getting high returns in the next 2, 3 years, but you are not thinking about the risk it will happen in the next 2 or 3 years. Everything is risky, nothing is 100% safe so diversification is always advisable in investing.

I can't take the stress of real estate investment so I do all crypto and Bitcoin dominate a large percentage of my holding as other altcoins does not make sense to me anymore, I rather put large part of my investment in Bitcoin and have some peach of mind knowing fully well that it going to take time for my profits to come up, it may delay but am certain that in 2 to 3 years from now Bitcoin is going to make a tremendous increase that will profits investors who have hold Bitcoin for long term.

So for me 100% Bitcoin if possible!

A very good strategy, but I think that I would split much more, I would leave 50% in bitcoin, and I don't care if the price goes up or down, I would just leave it there and withdraw it only when I see that bitcoin is going to increase 5 times the price if I would think about withdrawing, because bitcoin has a cyclical but exponential behavior, it is true that there is a very good period for the purchase that is when the price drops a lot, and the optimal one for sale, that is when they have to take advantage, it is like the opportunities, but I say that it is exponential because each historical maximum is much higher than the previous one, perhaps it is a more complex mathematical formula, but that is the behavior.

I believe that the best way to optimize earnings is to diversify. Even if there are losses, they will be mitigated.

For example, 25% in Business (stocks of companies focused on business), 25% in Real Estate, 25% in cash and 25% in international assets (companies from other countries).

I believe that this strategy is very good, and looking at the past, the profitability is also very good!

I invest only in crypto and mostly in btc. i'm not cashing out profit to invest in another assets and sectors, because bitcoin looks the most promising investment these days. Moreover, I don't feel like I have enough income to migrate to something else with enough funds to have a decent income from that. The only thing I do is to cashout bitcoin sometimes to invest in something I can work with, but that is not passive investment, it's an investment I need to work, produce and sell the final product for profit, what becomes really hard because there aren't many customers around, but I keep trying...

investing in some alts in my opinion, is really not that stupid. let's say, eth, it has very solid foundation which for me is worth holding. however, i do agree that as much as possible, you need to diversify your portfolio outside crypto. real-estate, jewelry, gold, and other tangible assets are great addition to your financial portfolio. because if one fails, you have other assets as your back-up.

Yet, it was not also a good idea to put everything or all your money into a single investment like Bitcoin. We know the risk in crypto and like spreading it in the local stock market, investing some in real estate is way better and more advisable. However, it really matters to us how we manage our portfolio as well, some diversification is obviously needed if we are not happy with our investment.

60% share for Bitcoin while 40% is for altcoins or the stock market.

Depends on you but we know that diversification thing would always be the best considering that we are scattering out our money on different assets which we could possess as much as we could.
Im aint saying that BTC holding or crypto would really be utterly shit on going all in but it depends on a certain person on where they could build their confidence in.

Diversify as much as you could, so that in case one of your investment had gone down then you could always have the chance to make out some recovery unlike
if you do focus on a single point which it would really be hard for some recovery if ever the market turns out to be shit.

Shouldn't before investing do your research first about which coins are worth investing in and will give you a profit? If I judge from what you say, I see you are not too serious in doing the analysis before putting your money in it. Because, from what you said you threw away some useless coins, that's the statement that is the question in my mind. Or maybe you are investing in a new project?

What just I did is that I discard coins that are not profitable anymore. I sacrifice myself losing a few bucks rather than waiting for many years for nothing but just a few cents. I usually check my portfolio quarterly and when I notice that there is an improvement, I started to look for coins that are not growing and replace them. That was not a hard task though...

Well, it was a good idea to check our investment very often so we are aware of what direction our portfolio is going and we can make some adjustments earlier rather than holding coins that are not contributing something.

Correctly i am using Technical strategy to follow the market, and it work perfectly, and for some time, it turn against trend, but, only require to control the emotion avoid lost during diversification or correction of the market movement.

That's pretty good and looks very wise the investment you have made so far. Even I personally also want that kind of investment at this time, it's just that I don't have Bitcoin and also have never stored it in the past, so at this time I only rely on gold and rice investments.

I am very happy to buy gold to store the assets that I already have and so are the rice fields sold by other people to me, because rice fields are like land which if the location can be very strategic with the road, then the price can be very expensive too in the future. And on the one hand, for now I also plan to buy a little Bitcoin according to the ability I have to save it as an investment, because here I see more people taking advantage of the declining price conditions to buy Bitcoin.

I guess it's because they are in the crypto world that they invest in many potential altcoins. It's not wrong as long as they can choose coins that can increase in the short, medium, and long term and analyze them before buying them. But unfortunately, most of them do not analyze before buying but only buy based on what they read and find on the internet.

Maybe investing in index funds, gold, real estate, etc., is still too expensive for them so they switch their funds to crypto because they can buy large amounts of coins and hold them until the price really increases high.

Currently, in addition to investing in bitcoin, I also use part of my salary to buy gold, for me bitcoin is an investment that can generate great profits in the future. While gold is my place of choice to store my value as gold is stable, gold is a store of value as well as a savings alternative to fiat, I don't want to hold too much fiat. These 2 investments are not related to my daily expenses so I will probably hold them for the long term. But personally, I love real estate and once bitcoin can generate significant profit for me, I will definitely sell some to diversify with real estate. Part of me wants to diversify my investments, part of me wants to spend it on my kids.

Yeah, I think when people talk about diversification they mean investing in index funds, gold, real estate, etc.

I don't think wasting money in alts is really diversification.

I agree, I don't understand why so many people invest in different coins and they say they are dividing their eggs into multiple baskets, when they know well that the market depends on bitcoin. When bitcoin goes up everything starts going up, when bitcoin goes down everything will go down, even death if bitcoin plummets. If you don't invest in bitcoin and you only invest in altcoins, it is acceptable to hold multiple altcoins to reduce risk but once invested in bitcoin and want to diversify by investing in altcoins it is stupid.

I also believe in the future of bitcoin, but I balance my investment with bitcoin and gold because for me future is unpredictable, everything is risky so always have a plan B.

It’s better to invest only in Bitcoin for cryptocurrency investment and diversify your fiat on stock market to your local broker. I’ve been doing this since I start working and saving part of my salary on Bitcoin(some Eth) and most of my portfolio is diversified on local company here that I know that will grow more in the future such as fast food chain and telecommunications company.

Don’t invest much on altcoins and NFT if you are really looking for future investment because most of this hype tokens will surely be worthless in the future once new trend introduced.

I'm not sure by the time that you'll able to make with your bitcoin holdings, NFTs are still a thing. It's a good idea that you've mentioned startups because that's where the last thing that I want to diversify my investments.

I'm seeing a lot of startups that are waiting and looking for angel investors but I don't want to get on it as soon as possible. I want to do it slowly but surely and the profit that I'll also make from my bitcoin holdings will be going a portion of it there.

It's like owning a part of a company but before doing that, I'll make sure that I've got a good and focused partner.

I will say any users who diversify their investment to altcoins are stupid because altcoins price are following Bitcoin price, so if you're diversify to altcoins you're not diversify anything. If anyone want to diversify their investment, make sure you're diversify to other sectors, not in cryptocurrencies again, you can choose stock, gold, silver, real estate and many more.

But to be honest I invest too much on Bitcoin and I don't regret about it, I think Bitcoin have a bright future and I'm ready to accept the risk.

Bitcoin affects my balance only indirectly. I'm not a very big expert. Therefore, I simply bought bitcoin for a certain amount and invested it. Now I just watch how the bitcoin exchange rate changes. In future plans, the profit from the cryptocurrency will be invested in even more interesting projects/startups/nft.

I was looking at how banks are diversifying their reserves, and found out that now banks will be able to allocate one percent of their reserves in Bitcoin:

Yea, whenever I got profit from somewhere I can just put partial amount of that profit into my portfolio either Crypto, gold, stock or whatever investment instrument I want.
My portfolio is Cryptocurrency(Bitcoin and Altcoin) for 50%, Stock market for 20% and gold 30%.

Gold is mainly for my future investment and savings just in case for the urgent backup. I'm pretty proud with what I have currently, as I can circulate the money for everything I need either for investment or my own needs.

Diversification is key to getting protected due to uncertainty that may arise a long the line, because if one puts his investment only on one particular Asset and not diversify ,if eventually something bad happens to that very asset, that could lead one to loosing all his investment in just a twinkling of an eye, but if we spread our investment to some assets class then when one asset crumbles you can hold onto the other. Therefore, Aside having majority of investment in Bitcoin, I love and invest in Gold and Real estate and this is base on what I can afford to loose.

The cryptocurrency market can be said to be quite different from the rest. In crypto, diversification is only true when you invest in altcoins, but with bitcoin I think that would no longer be correct, as the whole market is governed and dependent on bitcoin. In the event that bitcoin drops, then also no altcoin can make you profit, even many altcoins will die and cause you even more losses. Investing in altcoins we are simply trying to generate the larger returns we are looking for rather than diversifying to secure our investment.

That's how I want to diversify too but analyzing the market for stocks, it's not for me at least for now but maybe in the future I'll be encouraged and attracted to it.

Many talks about real estate and just how we talk about bitcoin, it's on my list. As you deal with the problem of having little capital, some of the strategies that I've seen is about having a mortgage and have it rented so, that rental income will be the ones that should pay for its own monthly fee.

Although this is still requiring a hefty amount of money depending on the property you'll get plus the possible renovations that you need to have.

The other assets that I'm having on my list is about those cards like NBA cards, pokemon cards, well, I'm not an expert there but I see that there's really a market on it.

I would like to diversify into other assets, I like precious metals, maybe I would buy some stocks, or even real estate, but the reality is that my small funds now can allowed me to invest in only one asset, so I chose bitcoin, because it is easy to buy and store, and it shows a very good momentum in price growth.

Yes, of course. Previously, I also took profits partly to move to some other fields and here I chose to invest in a small local business and let my wife manage. Besides, I am waiting for an upcoming bull season, when I get a significant profit I will continue to extract a part of my profit, my target this time will be real estate or gold. for me, diversification is absolutely necessary because we cannot be certain about the future, although bitcoin is still my favorite investment, simply because it used to give me huge returns.

So far I only trust Bitcoin for investment. Bonds, gold, and stocks available have not been able to provide what I was looking for, namely freedom of government control. For some reason when I got to know Bitcoin I knew that my investment character really matched what Bitcoin had to offer. Of course, it sounds selfish and does not trust what the government provides. I found many stock markets, but the investment atmosphere that kept me believing in Bitcoin grew. So any risk on Bitcoin as I have accepted with pleasure.

Last year was wild for me because I did took some risk on some things like Doge and Shib, when I pulled out my profits I put them in ETH and BTC mainly. Since the, I have been focus on building a balanced portfolio - Like 50% crypto with a ratio of 30:20 for BTC and ETH, 20% real estate. And 30% in some other side hustles. I dabble into other coins occasionally but I just go there to take profit.

In crypto, I have at least 5 coins. Of course, the biggest portion of this crypto portfolio belongs to Bitcoin. For me that's a must to every crypto investor because we value the safety of our portfolio. There is nothing safer in the crypto market than Bitcoin. Outside crypto, I also have a few business venture investments. I am already staying away from stocks but have little investments in gold and silver. My diversification strategy is very simple. It's because I'm not a big-time investor.

I heard somewhere that "crypto investors should realise that one man and one tweet can derail their life savings", so don't follow or change your mind according to other peoples plans. Just go with your own plan but inspired by others. Limit your crypto investment risks so don't regret it later.

In my minds eye this isn't remotely diverse. All in on one sector, no beano 

I'm at my mid-20's that's why I can risk more money still but maybe in the next 2-3 years or starting next year, I'll slowly move some of my funds into stocks that are giving dividends annually. In that way, it will be safer and aside from that, I will receive passive income annually thru dividends.

As of now I don't know the exact numbers, but based on my estimation, I think 80% of my total assets are in crypto, 15% are in the stock market and only 5% in another investment. Most of my crypto portfolio are in BTC and ADA but I will sell that ADA and buy some dividend stocks.

I'm thinking that I might be a bit safer when I'm nearing to reach 30 years old. Are people using the same strategy here that as you hit 30's or near 30's, you will invest into safer assets?

Well, regarding diversification, I would recommend to everyone who owns real estate, at least one house to live in themselves, unless they are very young or plan to move around a lot, so it would be better to rent.

For Kiyosaki it would be a liability but it is very debatable, and paying the mortgage, every month that passes is a % more yours. Having a day tomorrow where you can live without having to pay a mortgage or rent will alleviate your finances a lot.

Apart from that, I obviously have bitcoin and some investment funds, as well as cash for unforeseen events.

Diversification does not mean having 17 different financial assets. You can have few but good ones, and an investment fund is already diversified.

As for cryptocurrencies, I don't diversify. I only have bitcoin. Here I remember someone saying that diversification is a protection against ignorance. I'd rather have the best currency than diversify to see if I hit the lottery.

Initially I invested in my local stock market but I was not satisfied there. In that stock market there is only the investment of the people of my country and there is a small part of the international investment. But I was looking for a platform where I can get the whole world on one platform. In this case I got Forex first but found cryptocurrency like Bitcoin better. Before I invested in Bitcoin I was well aware of its history. Currently I am interested in investing 70 percent of my investment in crypto. I think it will diversify my investment.

It is very important to diversify your investment. Invest in different categories, invest in different things, invest in different cryptos.  Because by investing in different cryptocurrency projects, even if one project fails, your entire investment will not be lost.Diversify your portfolio. so that 60% of your investment is in top cryptos.which have been in the market for a long time۔For example btc, ethereum, xrp, solana, dot, mana etc. you should buy more in them.Because these cryptos will be able to give very good returns in future.You can then invest 20 percent in risky cryptos where there is risk.Like Shiba Inu, Baby Doge. should not put too much money in such coins as they can give you more profit and there is risk of loss.Out of the remaining twenty percent investment, you can invest 10 percent in Metaverse tokens because people are very bullish about Metaverse۔The last 10 percent are for new projects or new tokens that have been launched recently.If they are successful, you can get very good profit.

most commodity investors are looking at whats happening in autumn 2023 to determine what to do now. as prices for winter 2022 were already factored in in spring/summer 2022

never think about investments in commodities from the point of view of the consumers needs this month or consumer reactions this month. be 6-12 months ahead of that
 

taking a look at industries such as car manufacturing..
back in spring .. tesla seen the recession and knew having spare fiat or just stored asset investment money hanging around doing nothing was being wasted sat there..
because they knew car parts would cost more in 2023 due to higher costs of material and shipping as of summer 2022-2023.

many industries already liquidated investments got the cashflow and went on a buying spree of parts/materials while cheap in the spring. thus stock piled material for summer 2022-2023

any cash they then earn summer-winter 2022 from product sales they can put back into investments again

oil was the same. they seen the impending winter. and already pre-bought oil in summer for the winter.

yes industries do not buy produce on the day they need it.

same with food/agriculture.
retailers dont just buy at harvest. they already preplan the harvest need at the seed sewing/planting season
if they see that people will want more food in winter. they go to farms before seeds are even laid to do deals to get enough produce for winter.

so when trying to predict impacts of winter for the consumer/citizen. industries have already priced this winter into the market in spring/summer

Crypto, then stocks and real state. I have been in stocks prior to me joining crypto and then have some investment as well with real state. But when I started to enter crypto investment, then I would say that majority of my portfolio is in BTC and then just a few altcoins. And it should be for long term though, specially BTC because we all know that it has a bear and bull cycle so profits are going to be made if maybe at least 2 cycles of it thru holding and then evaluate and then diversify again. Getting your profits from crypto and then buying real state, at least keep your investment rolling.

Diversification is a very important key towards success in investing and since there are many ways or many assets one can get into...this is just a matter of analyzing which one can be serving anyone...especially into the future. As for me, I am also into real-estate though not on a big time basis. One thing for sure, with cryptocurrency there is a high level of excitement but there is also at the same some big risks especially since it is a very volatile kind of thing...we have to be careful all the time.

Are you also figuring out which could be the best investment to have while there is a recession?

I have no diversification but all in crypto from BTC to some altcoins kept. Not Ideal probably. I quit the stock market, it would have been profitable if I have invested in oil and crude companies. Would it be too late to invest in it?

Most of my assets are in crypto, stocks, and gold, for cryptocurrency, the majority are Bitcoin next Ethereum, and stablecoins.
For situations like these, very volatile and the market is bleeding, I tend to convert some of my crypto assets to stablecoins and stake them with very low APY.

Next is stocks, I have minimal exposure for stocks and for stocks, mostly I own are indexes. For the gold, it's still in crypto, it is just tokenized gold.

Wow! You are a true believer of bitcoin as the large chunk of your money is in bitcoin. Anyway, everyone is free to do what they want with their funds. In my case, I am slowly accumulating gold in the form of jewelries. At least for me, it is not hard to keep it and the amount is not that much if you buy small items of gold jewelry. I am also observing my spending habits and not buying unnecessary things.

My diversification is distributed across a few sectors I think could be important in the future. Somewhat like the following.

Agriculture
The value of plants and trees could rise significantly if food shortages hit in earnest. I've invested a little in plant HODL both as a potential food source and investment for the future. Also I spent time learning about agricultural processes, gaining experience in growing and maintaining things.

Metals
If fuel prices continue to rise and the shipping industry continues to experience issues. The price of commodities like metal should rise locally. I have tried to do very small scale metals and commodities HODL. There are local scrap markets that deal in scrap copper, steel, aluminum, etc. Depending on the area and availability of scrap. It could be a decent future investment.

Manufacturing
If supply chains and related issues persist. A transition towards DIY and local manufacturing could increase due to rising demand. Things like 3d printers could be useful in the future. As well as the knowledge and skillset necessary to use that type of equipment. I have CNC equipment that I use and plan to acquire more in the future. I'm also learning more about concrete and other basic process.

It may not be difficult to see which direction future trends are taking us.

Being an early adopter could still be a thing for those who get in early to leverage shifts in markets.

When I saw this thread I thought it would be another one of those "you need to buy altcoins to diversify your bitcoin" threads. This is an improvement OP! Buying stocks is, contrary to buying altcoins, a real diversification.


That said, I don't have a diversification strategy, I'm all in bitcoin.
My chart would look like this:
80% bitcoin
5% money in the bank in various currencies
15% cash.
I don't need to buy other things. Change my mind!

This is a clear cut understanding. I have had experience with altcoins and I know how it works. I will not call investment into altcoins a diversification because the altcoins follow the bitcoin movement. When btc is green, other coins will green, when btc is red, other coins will red also.

I personally doesn't like traditional investments and I had a bad experience with stocks. All my investments is in btc and I am comfortable with it.

I guess diversifying your investments will always be profitable as long as your investments or businesses meet the demands of the clients or customers. That way, you won’t have to worry for their future. For me, while I’m into crypto investments which is more focused on bitcoin, I also invest in a small business near our place which   is also giving me additional income right now. But I know for some, diversification not work so they end up investing in bitcoin alone which I think is also a smart and wise idea.

Diversification is good but somehow you should also make sure that you are investing in the right coins, otherwise all your investments will never give you profits because you end up in wrong coins to invest. The reason why people still only focus on the most promising and reputable coin in the market which is bitcoin. Atleast you know that no matter how low its price falls, it won’t settle on any low value but always manage to recover and surge again until it reaches a new all time high.

For me my total investment is bitcoin, I don't have any other liquid asset at the moment, but for a very small amount of ETH.
I'd say I have close to 94% in BTC, 1% in ETH, 1% in physical gold and 4% fiat money. I don't own any stocks, don't have time to play with those. I rather buy real estate and improve the ones that I have to make them more valuable.

My portfolio is composed of btc, a few alts and real world assets like real estate. BTC and real estate share almost the same amount in my pie chart.
But, btc is more having in terms of value because it's just down these days because of the market situation but during the bull run, it's like 4x-5x more than the real estate that I've got.

As a financial advisor this is something that I discuss on a daily basis.  Diversification is extremely important, and I see far too many people not being so.  Bitcoin does unfortunately move too much with the stock market right now, but that doesn't mean either one is a replacement for the other.  Having both still offers a level of diversification. 

A proper portfolio diversification set up all depends on ones situation, net worth etc.  Stocks, precious metals, mutual funds/ETFs, alternative investments like equity linked notes, real estate, cryptocurrency etc are all things to choose from, and how much of each all depends on a number of factors.

OP, first, I think this thread should be in the trading discussion board and not here in bitcoin discussion, this is because diversification has more to do with trading than it has to do with bitcoin, even though bitcoin can be diversified.

Secondly, to contribute to the discussion, while i can honestly say that I have most of my investments in crypto(bitcoin included), I have part of my investment portfolio in real estate, I also have a small supermarket business which I invest money in.

This are the three sectors I (for now) can boldly say that I have diversified with.

Bitcoin is a large part of my investment portfolio, but mostly because of it's extreme performance.  I have taken profits over the years and purchased debt free real estate as well as stocks.  While I have most of my stocks in a typical brokerage account, I do try to max out my Roth IRA annually as well.  I don't hold any bonds because inflation would leave them with negative real returns, but I do own a lot of VTI (total market fund) and some other great individual stocks like O, JNJ, etc... 

I think a good goal would be to have your funds diversified, but I tend to think that the ultimate goal would be to hold enough stock to enable you to live well on the funds while still being able to accumulate more assets.

Most importantly though, I hold assets I believe in that do good for the world and will stick around a long time.

id suggest do not invest in PoS coins. they have no backed underlying cost in their production. their market price is propped up purely by speculation of human decision on what people think they could/should pay/sell for
(trade (in-out quit deals.. but dont invest(hoard/hold))

asset with a underlying cost of production has a world wide base "bottom" no one is stupid to sell below. the price speculation above that is then the variable of different peoples costs or motivations.

only buy assets on their LOW

work out the most efficient cost on the planet to acquire that asset by any means available

EG if its gold. imagine the costs of mining it and working out the land lease costs of the plausible cheapest leasing costs, lowest labour, efficient sluice machines and diesel and how much a season cost is.. and the average gold yield mining produces. and calculate that bottom rate.

then look at the market and see if the market price is high at a premium far from that base. or if its at a low close to that bottom value

EG if the gold current "bottom" is $900
if historic market top is $2000.. and the current price is $1700
then put it into a visual form
gold($1.7k as 66% of market window)
   ||||||||||||
900       ^  2000

(bitcoin: $15k is the most efficient mining cost using good efficient current gen asics including hardware costs of lowest electric plausible to use
bitcoin $90k is the most expensive mining at current hash rates)

bitcoin($20k as 6% of market window)
     ||||||||||||
15K^           $90k

you soon see its probably time to sell some gold and buy some bitcoin
where you start to see how much gold to have vs how much bitcoin to have. which on those 2 gauges show to be very very much in on bitcoin right now.
if there were multiple good assets with all being in the good green zone then you would split your wealth over more of those good guages

in short.. work out the markets underlying costs and the market window of speculation and where he price sits in that window.
and if your current portfolio shows you are holding during a high. take a bit out of that and put into something on a low

emphasis buy the lows, sell at a profit.
dont buy into things with no underlying costs that are pure speculative. and unsupported. especially dont buy into projects that have no real utility in the real world

I don't have any carved in stone investment diversification strategy, though like most people that are passionate about bitcoin, it holds the largest percentage of my investment, one thing i don't do is diversify in crypto, anybody doing that should understand they are not diversifying, so personally what i do is just buy bitcoin and then i try to find something outside of cryptocurrency to put my money into, it could be something traditional, or it could be new, i do not limit myself with that.

I do have physical investments or you could call it businesses which i think is like a must for anybody that has the capital and time to run it. I feel the best way to go about it is to have multiple sources of income, without investing more than you can afford to lose in most of them, so should there be a mishap somewhere, you'd have a plan B.

I used to have one, and I tried that thing about not putting all eggs into one basket because it sounded like it made sense. After a few not-that-great altcoin investments, I decided it's not for me. As for markets beyond cryptos, they were never of interest to me, so it would take a lot of time and effort to even explore them and how the work before choosing what to invest in. I am fine with Bitcoin. Yes, it goes down often, sometimes even by quite a lot. But I have enough confidence that it will rise again and that it will recover no matter what, so I can just wait it out. I don't think I'd be as confident in metals or something else. So my pie chart would have one colour because it's all Bitcoin (aside from some fiat savings I sometimes have, but this isn't an investment, so I don't count it).

It sometimes does follow the US stock market's movement — but if you zoom out, not that much.

Personally though: 70% crypto(like 60%+ BTC depending on the circumstances), 30% stocks. (not including cash). I'm able to take these risks simply because I don't have children(nor a wife) yet. But, I slowly but surely move out of crypto down to probably 30% at some time as I grow older.

Also, I have small businesses that earn me money semi-passively, so there's that.

Everyone's strategy is going to be different because of many many reasons.

But how does it fit into your portfolio? Are you taking profits and moving it to other sectors? Are you shaving some profits into metals? Bonds / TIPS?  Real estate?

IMHO BTC tracks stocks to close to call it diversified in my minds eye but do you have stocks? Maybe into a ROTH IRA or traditional (tax deduction).

How does BTC play into your balance or diversification?

What does your pie chart look like?