Topic: Whats better holding many coins or fewer coins? - page 2. (Read 11630 times)

Low-cap coins often have low volumes of trades, a weak development team and low investor interest. They may also scam and undergo a delisting procedure. Coinmarketcap first-line coins are the most reliable for investment. They are supervised by strong development teams, steps from their white papers are usually executed on time and as a result, their price is easier to predict. I think it is more convenient to hold the best capitalized coins.

Holding fewer good coins is much better approach than holding too many altcoins. With less coins it is easy to manage the portfolio and you will know exactly which price you buy those altcoins. If you have more altcoins it will be difficult to remember each coin buying price.

True that, because very few ICOs actually delivered what they promised and rest of them went in a professional hibernation mode making the investors crazy while the devs slept looking for more "private" investors to suck money from. This is why people should stop this ICO craze once and for all and sell your coins at the first chance you get and abhor any further purchase of shittokens.

To get decent profits the only coin that you need to focus on is bitcoin. None of the copycat coins are ever going to rise second to it. Those are false dreams that idiots have.

I'm sure that in any case, you need to split your deposit into several parts, depending on your goal. This needs to be done in order to diversify. If you intend only hold, then consider a few promising coins, including bitcoin and ether. If you are planning to do daily trading, then you can consider different coins. Don't forget to take into account the fact that coins must be liquid. So, if you buy a low-liquidity coin for $5 k, you will not be able to sell it later at the price you want. That is, somebody need to be willing to buy this coin for the amount for which you sell it, otherwise your sale will simply bring down the rate of this coin. And when trading coins with low liquidity, this scenario is most likely.

In crypto investment it is always good to consider diversifying, the quantity depends on your capability and knowledge to manage them.

For me I prefer to hold fewer coins particularly the popular ones. Why? Because im using the strategy of holding for long period and in this case I need to make sure the coins that I chose are worth hodling and likely to give me profit when the bull run occur.

Do both. Spread risk. Hedge. Just like stock trading and management of any 'traditional' portfolio.

The problem with buying and holding a small cap alt coin is it's just like trying to trade on Penny Stocks.

They seem attractive as it's easier to double your money on a $0.001 value coin (or stock) than on something that's priced at say $100. They seem doubly attractive as you get so many for your money and if they go up you can get a 1000x or 10,000x return.

The problems with this idea, as many have pointed out, is liquidity and volatility risks (along with scams, lack of regulation, ...). There is a very great probability that liquidity (money in the market to buy and sell the token) is being provided by a small number of holders and can be taken away at any time. When they buy in the price jumps, when they sell it plummets. This is in part where the volatility comes from. It's the same effect from pump & dump sessions we see initiated in so many Telegram groups.

However, just because a token is inexpensive doesn't mean it's not one to buy into. If it has a great business case / use case, a solid team backing it, etc. and you understand the field or want to support investment in that area - then buy in and hold through the rough times. History is littered with missed opportunity from startups that no one realised would become so huge. Apple ($0.46 in 1986) beating Microsoft ($0.11 in 1986) or say Coca Cola that never got above $1 until late 1985.

Ok, even for oldies like me the 80's feel like the distant past, but we all wish we'd spotted those and bought shares, we'd be billionaires by now. It's the same with crypto. You can trade the swings, pump & dump or get in at the ICO/IEO and probably lose money - or you can evaluate them against your trading model, invest and hold (so long as the rules of your trading model aren't breached). This is what I personally (i.e. not as a member of the CBF) have done with XRP and PBL. Two very different projects in very different spaces, but I understand the market and feel the projects are sold. Now we wait.

However, do NOT put all your money into small caps / alts unless you love risk and can take the loss of all your capital. Buy into the major projects that might grow more slowly but are more certain to succeed in the long run. That would be like buying into say BP, pretty boring, slow but safe and if you get minced on your alts, these should provide gains enough to offset them.

Don't gamble, hope is not a strategy - analyse, plan then invest.

CBF

This question doesn't have a clear answer. On the cryptocurrency market, some things defy this logic. The first thing you should pay attention to is diversification. This is a very important aspect, without which it is difficult to be a successful trader. You must divide your deposit into several parts. Personally, I prefer to divide it like this: 40% in Bitcoin, 20% in the ether, 20% in altcoins and 20% in usdt. At the moment for me this is the ideal proportion. But depending on the overall market situation, I can change my view on distribution.

For me, you can try it all as long you can afford to lose that money that you invest, not telling you to make some stupid move to spend your money. But sometimes its a good move for investment. If you have 50k and want to trade, you can try buying into the small that is much affordable now and sometimes a higher profit if theirs plenty of good news. Also, you can gain a piece of knowledge and new techniques in some affordable way. But if you genuinely want to gain a higher amount I think bitcoin can still surprise you. Anyways just trust your self and your instinct.

It all depends on how much you want to choose to keep where. The market is unpredictable so you cannot say for sure what is better. If you really trust bitcoin then it is better to HOLD and keep it as an investment for the future. But if you are here for making instant gains go for trading.
Also, go for coins with higher market caps as it is not just about gains but also security!

This is a great question and everyone will doubt whether he chose the right assets in his portfolio, because the world of investment is hard to predict the exact behavior of the price and therefore it is better to diversify it

It is not a bad idea to diversify into different assets, but provided those assets are quality assets, because it will be a waste of time to store lots of assets in a portfolio for years and watch them standstill without increase, we are all holding this assets for the chance of having an increase in our investment, if it is just a coin that we are sure of making our savings increase, then it’s fine.

What matters most is that we make enough research and be so sure that we get coins that have working products, because only coins with working products are the ones that will continue to grow in value even when the coin is being dumped.

Its okay to have many coins but choose those coins that is on top of the list and don’t get too many coins because you might not be able to manage all of them. You can get 1-3 coins in your portfolio but if you think you can manage more then you can add more just make sure you are able to manage them correctly because if you don’t then it will only be a watch of time and money.

If you're still yet started into crypto better for you to invest in your best choice asset, let say bitcoin which is most trending coin now among other form of crypto. You can diversify investment in crypto once, you felt like you have enough knowledge with it, like executing buy and sell token or coin in different crypto exchanges site.

This is a good question, because every investor once begins to doubt when he sees that other assets are growing more than those in his portfolio, but you need to understand that they should not grow the same way and you need to count on a long-term period

enough with a few coins in the top rank, we will be easy to learn. for beginners it is very easy, trusting bitcoin and ethereum may be enough. and if you want to learn to trade, use a small portion of your capital to buy other coins according to your analysis

  I know people who have been investing in one or two coins since long and those coins have been making some good money for them. I think that it is never about the number of the coins but the fact that if the coins you have are profitable. If you have invested in the right coin, you would be very able to make good money and there is no need to go for other coins. However, for the purpose of diversification, you could do so.

It seems to me that you can have minimal risk and invest your money in more familiar cryptocurrency, which have common known results.  I'm talking about Bitcoin and ethereum.  To date, analysts predict a certain growth, including for ethereum.  Today, the price is approaching $ 290, and if in the near future the ethereum reaches $ 300, it will easily add $ 325.  For those who invest today, there will be a very good indicator for income.  For those who want to take a chance, today there are quite a few promising projects that need investments.  This is BNB, Monero, Energi, Dash and ReddCoin, as well as many others.

Your thoughts are correct, but you need to carefully approach the selection of tokens with a small capitalization and a small price,although they have a potential higher, but the top crypto-currencies have a more reliable support

Having lots of coins will not guarantee you can always get a profit, the most dangerous thing is that you save too much coin and the price falls a lot so it will make you lose a lot.

Why would you even focus on hundreds of coins? If you are trying play a lottery with so many shitcoins and see which one goes up then be my guest, buy every koolaid propaganda shitcoin out there and increase the quantity of your portfolio instead of focusing on the quality of your portfolio. People need to stop listening to promotional content which is posted on social media and platforms like youtube promoted only by bagholders ready to dump their coins.

The more time you spend analysing your shitcoin stash the more time you waste which you could have used in doing something more fruitful.