Bitcoin Forum

Just like stock, you can invest all your money for a coin code if you really trust. But that would be very dangerous. One can make sure that the coin will not fall down to 0 a day.
The advice is to diversify your portfolio. That will help reduce the risk. You do not earn much but if not lost also much.

Yes this should be commom sense, diversifying the portfolio increases the chances of success and makes you not crack down if one of the coins fails miserably. I always advice my friends to invest like 50% of what they have on bitcoin or ethereum, 25% on couple top 20 coinmarketcap coins and then the last 25% on very cheap coins that have some chance on breaking out!

I agree with OP, we should diversify when investing our Bitcoin.  Putting it on one pot will only means 100% lose when the investment does not go well.  But when diversifying (putting your investment in different venture) you should know one rule, diversify only when you can manage it.   Meaning set a limit to the varieties of investment you will do.  Since we need to be updated and fully aware of all the movement of these ventures to have a successful one.

if we distribute bitcoin to another altcoin is good at top 20 rank in coinmarket for sure we are less risk. Especially the newbie what they are buying does not know the value of the coin they just make them hyper groups. So Controversial Remember that your bitcoin is very dangerous if you invest in a different coin. Investigate before invest.

Need in parallel to develop and invest in offline business.

and just like stocks what you are suggesting here is this:
"when you invest in stocks you should diversify into penny stocks too if you want to reduce the risk".

do you see how it doesn't make any sense now?

that is the issue with altcoins, they are more like penny stocks market than a real market. and then if you consider the level of manipulate and pump and dump that is happening in altcoins you can realize that when you "diversify your money" it is best that your cart contains: bitcoin, stocks, gold,... instead of being: bitcoin, altcoin1, altcoin2, ... altcoin10,....

Yes, I quite agree with you.
And I did what you said.
I invest half of my assets in bitcoins.
Half of it is invested in eth, and I think I have a great way of investing.

The best thing to do is divide your capital into parts as follows;

• 60% low volatility coins
• 30% medium volatility coins
• 10% high volatility coins

Low volatility coins such as BTC, LTC, ETH and XRP are roughly stable over longer periods, have lower potential for growth but are a safer investment. You can also put some money into more risky coins, in the hope that the growth outweighs the risk. Of course you should independently research each medium/high risk coin to see how much potential you/or the market believes it has.

Yes, I totally agree with you. Diversification of assets is necessary.
The crypto industry is growing at a high pace. There are many directions for investing.
New projects, Mining, Altcoins, Crypto market services.

Well said. If I have my own money I will do it the way like you said. Relying on one coin is very dangerous because you do not have a backup plan. In every business it is very important that you look at all the possivle angles before making a decision.

I agree with you.
That's what I did.
I bought half of my assets in bitcoin and half in eth.
I think my investment method is very wise.

yes, I know that the crypto world has a huge risk, even hacked and makes you weak, so I will not invest all my money. especially if the bitcoin conditions like today, we should have investment online and offline. I think will be more dangerous, so I will secure my investment.

People say never put all your eggs in one basket , I will not invest all my money for a coin .
I will divide my assets into some different crypto coins , let's say Bitcoin and Ethereum .

Thanks for the advice. I also do not put all my investments on coins in one bucket. I know thise one guy who invested everything on Bitcoin though. Pretty risky move if you ask me. Moreover, I am trying to strengthen my portfolio and I believe it can be best achieved with having different kinds of coins.

So to all newbies out there: Best to invest in Altcoins as well and not just Bitcoins

Yes, I think you're absolutely right.
If you invest only one, you will lose everything if you fail.
You can reduce risk if you diversify.

All we do is depend our decision.
I prefer to split my money into some different project to prevent high loss. Of course the profit that we get also smaller. But sometime the altcoin can hype till 100x and its big enough. Put all egg in one basket is very dangerous.

Yeah! You are right. It's harmful to put your eggs in one basket. The best way to invest in Digital currency is not to invest in single bitcoin but make your investment in various crypto coins. it will reduce your chance of loss. If the value of one coin is decreasing, the other coins may have a lift so as to prevent you from loss or maybe you can earn benefit from all your coins.

I think this common knowledge.. ''Don't put all your eggs in one basket''. The money you use to invest in bitcoin should not be the money you use for your basic needs. It should be what is left over or part of savings but not all of it. Anything can happen to bitcoin. Better safe than sorry.

I don't agree with you, Bitcoin has shown for years to be very reliable.
Also altcoins tend to follow the price of Bitcoin but on a decrease seem to be decreasing more than Bitcoin itself.
Besides that, what uses have other crypto currencies that Bitcoin hasn't?

Diversification is good, but buying other alts is not diversification!

A diversified portfolio is one that doesn't move in syncronisation (the idea is that you don't lose everything because everything moved down at the same time). Alts tend to move with bitcoin, so they arn't ideal for diversification.

If you want to diversify, sell some coins and put money in land, or gold or bonds.

I agree, we do not need to invest all bitcoin funds for a single source, even though the investment value keeps increasing every year, maybe you can see other investments like gold

Well, I can't say that I completely disagree to what you said. The trend shows that altcoins are also following the same trend as bitcoin. When bitcoin goes down, majority of the alts go down as well. But only the majority of alts, not all. In real investment world, we have concept of "contra fund" which literally means "Contradictory fund". This particular fund is created to make profit in the falling market by buying those stocks/assets who usually goes up when the market is red. If you have tracked the stock market closely, you will see that when a stock market enters red zone, Gold and Silver prices goes up because investors then try to hedge their position by buying these precious metals. This is the same technique used by the contra funds.

I have been tracking the crypto market since a long time now and I have seen few such coins do exist in the market. When the crypto market enters red zone, these coins goes up. However, I am not getting a very clear picture because of the number of altcoins we have but I am trying to get to a definite point.

I encourage the OP and you to track for the same and probably we will be able to point out some definite alts which is showing such kind of behavior. I am not able to devote much time to these because of my jobs and other commitments, but if we can find these, it can be proved as a very nice hedging for us.

But whatever you said about diversification, I too agree that one should not invest in coins only to safeguard their positions. Real world investment like Gold, Bonds, bank deposits are good tools to have as an investor which can support us in difficult times.

Sure!! like all business, never put all your eggs in one basket. In cryptocurrency there are diverse ways to invest your bitcoin. Trading, investing, margin trading etc. With all these options you don't have to invest in one source. 

I remember that there were only three altcoins that had a positive growth last collapse.
For me these three coins were totally new, so I assume their growth was due to their coin being added on a popular exchange.
It could have a different reason but it's a reason why a lot of altcoins suddenly make big growths.
But to make my point, 3 out 100 coins is just a gamble.

In fact this is just multiplying your resources of profit, yes altcoins follows bitcoin and if you really want to fully maximize that you can actually do it. I agree that we must consider to invest outside cryptomarket  which is less risk, invest on the things that you fully understand otherwise you'll loose money.

That's true, once you invested all your bitcoin in one source that is more risky than to those who invested their bitcoin in different sources. Once your invested will go down, all your investment will also drop.

It's only right that you do not invest all your money on an investment site just because it might be a scam and you lose nothing left over and just wasted everything you earn. A few days after Dimon’s comments, the value of bitcoin plunged when the Chinese authorities announced a crackdown on it. It has been an eventful month, even in the context of a currency that is less than a decade old.

Indeed, it is not reasonable to invest all your money in one token.
The people who make money in the cryptocurrency market are hold it for a long time, invest all your money in one token is hard to hold it for a long time, because you're going to focus on the change in the price of the token.

Yeah... It should not just focus on 1 coin. As you said we will not experience much losses if not just focus on 1 coin. At least we have to have 5 coins or more in the portfolio, so when we fail in 1 coin (hopefully not happen) then the failure can be helped with other coin. In addition, the funds for investment also becomes lighter. Another advantage is when we are having financial problems we can sell one of the coins we have.

I definitely agree, that is one of the rules of thumb in investment. Don't put everything you have in one basket, this can mitigate the risks you are taking. Spread your investments.

I have to disagree with you. There is no point in diversifying your risk by investing in more altcoins. Because if Bitcoin goes down, then the alts will also become worthless. If you want to diversify your portfolio, then invest in some other asset, such as real estate, equities, or mutual funds.

you must have your strategy of your portfolio. this is my strategy .


5% max invest altcoin (if you invest altcoin like this 5% on xrp, 5% on dash 5% on eth 5% on etc, 5% on BTS, 5% nxt, 5% xlm, 5% Btg)
25% on btc
25% on fiat currency

so if you want invest like eth,xrp,dash,etc you must use 5% of your capital. do not invest more than 5% of your capital.

why btc dont swith to altcoin? if at any time there is a very sharp rise of btc. then the BTC / ALTCOIN payment will decrease very sharply. here is the right time to buy altcoin from the rest of btc you have ..

why i have 25% fiat currency.  if the btc price drops badly so market will dump everything. this is perfect timing to buy btc or altcoin. usually btc drop for 1-6 days.

'Dont invest all your Bitcoin in 1 source' says the title.
Why should I invest my bitcoin at all??

I agree completely with diversification. So having other coins beside bitcoin is a smart thing to do in my opinion.
But investing what already is an investment, that is something I can not recommend to do.

I agree, that way if an exchange gets hacked it doesn't hurt too bad!

It is not always necessary to stick to one especially in crypo market, I agree that we need to explore things out. Don't just focus in a single reference, it is also risky just like bank account, don't just depend on a single bank as if that bank suddenly fire out, there is just a minimum amount that you can recover so if you have millions there, you cannot get it all.

Yeah, trust is also one of the thing you must to do in investment. But the thing is for you to have a stable thing to have a stable  i Ageneto get your needs and want that can be used to have a profit for yout famity.

investing all our money on bitcoin certainly has enormous risks, many suggestions from people who are in this forum who are more experienced in the problem of investment risks in bitcoin. Most people think that bitcoin is great if it is used as a form of investment asset but when viewed from the movement of bitcoin prices can change rapidly, either experience a fantastic decline or price increase. Do not be tempted to make a big profit by investing all our money into bitcoins.

I also agree with you bro. I ooften spend my Bitcoin in different investment to ensure that if I lose Bitcoin in 1 source, I still have chances to get it from the others source. If I invest all my Bitcoin in 1 place, I am afraid that if this place collapes, I will lose all my Bitcoin

well this pretty much requires a simple trait that every human being was born with. and that is common sense. but the thing with others is that some of them get fooled by all of those sugarcoated promises by various tokens or coins which then is fueled by this other trait that humans have which is greed that takes over and removes the common sense from almost anyone. this right here makes investing just enough pretty hard for investors since because of all the sweet talk and greed, the fear of missing out kicks in and makes them invest funds that are more than what they should invest to be able to diversify evenly on still have some funds left for some new promising coins that they might happen to discover. unless a person over experience manages to overcome this problems, then that is when he can truly enjoy the benefits of being in the crypto world specially in this forum.

I for example, I always use one project only. He is already tested for me. Therefore I consider that needs to be anymore nowhere inlaid

You're right. A great diversity of your investments works. And I bet that if you diversify your portfolio, you can generate more profits. It is also wise for you to diversify your investment. Because whenever a trade was loss, you have something for you to come back.

diversifying is always a good idea .all eggs in one basket never a good idea  8)

it is digital currency. She has many advantages, but most important for us it that the course of him grows constantly. For a year he grew already in 8 times.

this is the safest way to go through all this, because we will not know where bitcoin will go down, we better keep it by dividing the price level when buying bitcoin I think this idea is good to try to profit loss is also not too many

In the face of unpredictable BTC investment risk, the establishment of a portfolio investment plan is of great significance. Portfolio investment will not only hurt your earnings. On the contrary, it indirectly increases the expected return by reducing the "risk of diversification."

That's the right thing to do, do not put all the eggs in the same basket as a way to limit the risk to your property. You should have 2 to 3 different investments to diversify your income and reduce the risk of unprofitable investments, so you still have more investments to replace. That is the way financial experts recommend that you use to invest most reasonable.

aggreed ,
but one thing i know , no matter what various coin you invested ,if the mother (bitcoin ) fall another will fall , (exceptions for some coins)

In investing, we should always bare in our minds what diversification means. What is it? It is the appropriate allocation of your funds to various or different investments in order to lessen or even eliminate the risk of loss in portfolio in accumulation. If you have one (1) bitcoin, do not invest it to only one option but rather try to diversify. Be innovative and wise in investing. You can divide you bitcoin and invest in different kinds of investment, maybe 25% to stocks or shares of a prominent corporation, 25% in buying lang for appreciation of value and wealth and the rest of 50% in cryptocurrency. What am I saying? If the market of crypto goes in red, then you only have a 50% part of loss in your total investments and portfolio, that if you incur losses jn cryptocurrency then on the other hand in stocks and land you acquire gain, you profit will compensate your losses. Then you acquire no losses at all. Unless your profit exceeds your loss. But if you do not diversify and invest everything in cryptocurrency, or something investment, if you incur losses, then you loss huge amount because you do not diversify. Remember it is one of the best techniques in investing.

This is standard advice , don't put all your eggs in one basket , whether it is stocks , crypto or life.

There are hundreds of coins in the CoinMarket that are both scam and legit. It is quite a gamble to know which is either of the two, but it is better to allocate investments properly and learn each coin that will be invested at. not all. In the real investment world, we have the concept of "contra fund" which literally means "Contradictory fund". This particular fund is created to make the profit in the falling market by buying those stocks/assets who usually goes up when the market is red.

Even being a big enthusiast of bitcoin, I appreciate your thinking as I am also an admirer of great strategies. Diversification is far better than investing only in bitcoin. This way, a person can earn money even when bitcoin is suffering from a decline. 

Increasing the source of income is essential to speed up the rate of increasing capital. But the investor should spend a big portion of his amount in bitcoin.

Yes you are right. Its never be advisable to invest in just single source, invest in multiple sources so that if fall happens in one price then it may get recovered by the gain from other resources.

yes.some invest in bitcoin and some invest on litecoin,eth,ripple if one thing goes up obvisouly one thing goes down so its better to invest in multiple coins

Yes, I agree to that opinion. This a general knowledge. I will not invest all my money in one source.  I always prefer to divide my money into some various projects and it will help to reduce loss.
I think is a bad habit to put your eggs in one basket. we should keep in mind need proper observe before the invest and always try to diversify strategy.

In general, there are many types of earnings on the Internet today, there are many scammers but investments. Quite good money.

Yes that's correct, if you have money to invest in a certain cryptocoin then the best way to do that is to diversify or divide the amount you'll invest on that coin so there will be less losses. Although at first it may seem like a struggle to follow on the coins graph and wait until when it will drop again but it will be worth it, I've done this so many times too and have lesser losses also.