Bitcoin Forum

Diversifying is a new meaning when it comes to crypto currency. Alot of crypto coins out there now. is it the generation of diversifying your portfolio. Now the average investor don't have to invest in Bitcoin if they don't want to. They got dapp coins. Privacy coins. Cloud coins. So many coins. U don't need to invest in one place anymore. Any bull run can give u net gains of over 2000% in a single night. Only if targeted by luck.

You really want to base it with luck?
True that there are a lot of options by now but you have to be sure with every pick that you will make.
It is not just buying over and over again and wasting money and then just wait for something multiply by 200 percent.
This aint gambling. You cannot just rely with lady luck.

Pick those who have a good feature then filter them until you have the best of them all.
That is what I have done and I hope it could give you some points to consider. Dont want to be just wasting money right?

There's no such thing as diversification in crypto trading,because all the cryptocurrency prices are tied together.
If there's a bear trend,the whole market goes down,if there's a bull trend-the market goes up.How could you diversify this?

If we want to make consistent profit from trading in the spot market we should be learn the trend of different market, not only in crypto because as we know when Bitcoin downtrend, all others altcoin has been follow it. We should be also trade in the others asset like stocks or gold. We should only trading on the crypto market when the market on bullish only.

I still believe in diversification and it depends on the angle you look at it,diversification is simply about not putting all your eggs in one baskets,and despite the closeness of cryptocurrency coins,they usually differ in pump and dump/highs and lows
So I strongly believe diversification is a viable strategy in cryptocurrency investments that should be used by many

If you are an investor who likes to do long-term trading then diversifying is a good idea, but for me as a trader I would like to pick a good coin to trade it for a short term.

I believe diversification is a good way to make profit but it also has it negative side. It negative side is when you don't do enough research to know the prospect of the coin you intend buying because some coins won't just make any gains. They just remain shit coins.

If you get into such, then you certainly would make a loss.

I don’t think making 2000% gain is only based on luck. The people who earn from crypto prices appreciation actually do lots of research and get updated with current news before they invest.

Diversifying is meaningless here. The only thing you need from an investor's perspective is Bitcoin and a top tier altcoin to accelerate your gains. Investing in shitcoins isn't something I recommend anyone here to do.

I hold both Bitcoin and Ethereum, and that's more than enough. Not going to put any liquidity in trash that shouldn't exist in the first place. The fewer people invest in shitcoins the less appealing they look to get rich quick rookies.

I'm sure that whenever you see the price increase with 50% you can't prevent yourself from cashing out. These mad gains are only possible when you ignore the market and later on see that prices exploded....

Sure! If you do not want to put all of your money at great risk, divide it. You know, all the prices are hanging from the foot of the Bitcoin mother and tomorrow just one news can destroy all prices. But, if you are only interested in dealing with crypto, you can keep your money as it is and try short term when needed.

I would advise you to keep secret whatever makes you money in this market.
 I wish there is a way we could to share trading ideas without revealing too much publicly. This about

All altcoins and tokens are correlated with Bitcoin though. There's no escaping it. If BTCUSD is in a bear market, altcoins will fall too. In fact, they'll fall harder than BTC. That's why I never hold altcoins during a bear market.

The only time it really pays to diversify into different altcoins is during an altcoin bubble like early 2017. As each coin you own pumps, you can take profits and reinvest into coins that haven't pumped yet. These are rare opportunities though. The entire year of 2018 was a bloodbath for alts and diversifying didn't do shit.

That's not a good perspective, my friend.. The crypto markets are more mature now, I'll tell you this: When the bull market finally arrives you won't see much coins exploding around. People will be very careful on what projects/coins/tokens they put their "leftovers" on.

The diversification of Cryptocurrency is one of the advantages that attract investors. You can easily own many different Altcoin, and a different Altcoin has its unique characteristics of the technology. Especially every Altcoin has its support and impact from different large investors.

The problem with holding shitcoins and also crypto is that it's extremely hard to time your sells and buys. Not everyone predicted BTC peaking at $20K and sold there (most believed BTC would continue moving upwards), and there's also no telling when a shitcoin's going to stop pumping or if it ever will pump. Pretty big gamble especially in this bear market IMO, which is why I've moved most of my portfolio back to major coins like BTC, ETH and LTC since we started dropping from the ATH. The bear market's definitely not helping your chances of having a coin you hold get pumped.

There are alot of others kind of investment that has lower fluctuacion and more safe than crypto,  so we have to learn also that as diversifiying. Make invest in real estate is more safe than crypto,  though offer lower return than crypto.  Just make sure we enter in to crypto market when bull market start and exit if our target profit achived.

I am not sure that diversification can generate more than 2000% profit, this is ridiculous. Because everything is connected to each other to follow the price of bitcoin as a reference for all altcoins.
In addition, investors are smart enough to choose which they will choose to invest.

That is actually right but it's still depends on the coin. Not all of them will get lifted when there is a bull run. I remember some supporter of a specific coin who always mention it on why it still don't recover when everything else is doing good. Maybe find those tokens who has good volume because it's always the first criteria of a good project.

That's the basic when investing, even before, this market is good to diversify but the number of coins now are growing steadily, unfortunately most of them are scams, so be careful when diversifying, choose only those what have a great potential in the long run.

My way of diversifying my investing is, 50% of BTC and the other half is on altcoins, BTC is a safe buffer because BTC will not die.

I agree. I think what makes it different and new these days is the fact that there are so many popping coins, and most them will just slowly die away and perish because factoring in the difficulty to survive in the market, plus the fact that competition is steep, it's just so hard to find your niche right now compared to before. Therefore, diversifying is now becoming a big no-no because it would just open the floodgates to more risks that people now are just too tired to endure.

Bitcoin is not the only choice is for you but not all coin is not going to give profits even in the bull run so think wise before your investment.I still believe bitcoin has the capability to outcome all the ew crypto projects and will have its place for another few more year or forever.But every investment success is also rely on luck as well.

Diversification is the best strategy on decreasing risk and you should have an investment in bitcoin in your basket. Please also be reminded that always check the legitemacy of the altcoins you will choose because once you invest with shitcoins, all will collapse.

I know this method but we all know all strategy must supported by market condition, without that we only get loss. Nothing wrong with any strategy as long replaced on the right moment and good calculation, your disciplines will finish it. It just about trust, many people already leave crypto and create big dump, are you go to?

Most of it is really been accompanied by luck, each particular entry without proper knowledge are something like gambling with your luck, even you form a good strategy and do diversifying actions you still need to have proper education with any particular investment to take, it's good to always have another
sets of plan to minimize loses and surely diversification is one of the most uses action.

      For long term holding, you really need to diversify your investment for sure of any of these Will having a bull run, but in day trading you only need to buy which coin have the potential to grow in short span of time.

You do not need to invest into many things in crypto, all those dapps and privacy and cloud and whatever are just crypto currency all together and they usually all move together as well. In stocks when you diversify your portfolio the reason is that apple stocks go up while microsoft goes down or exxon could go up while berkshire goes down.

Basically in stock markets the reason is that you have 50+ different stocks which would help you never lose money from just a single company doing something bad and bankrupting themselves. Are there market crashes like we had couple months ago? Yeah sure there are but they are once a decade so its fine for the investors.

All the above, on crypto, if bitcoin goes down all goes down, if bitcoin goes up it all goes up, hence diversifying doesn't really matter as much as it does in stocks.

The word that I bolded above is the real fact and that is true, the price is going up because the price is going up. No need to diversify other altcoins because is that just the same. It will go up when bitcoin goes up, so now, let's get to focus on Bitcoin. Altcoins diversification is not advisable since we don't know when the price going up, they are swinging their prices when Bitcoin price moved. Let's just give full attention to Bitcoin and altcoins is our second option to choose.

Yes diversifying the funds in top 100 coins will give good returns

But if you invest on too many coins then you are in more favour of losing more that how much you are making so just be selective while investing on the cryptos like upto 10 for huge capital investment and few others for longterm less capital investment.

It really could be that superb if crypto market was more efficient. But now we have big funds using only Bitcoin and Ethereum for investing. Because of that the whole market has a huge correlation. This is the reason why I think that the diversifying is not that great on this market as it is on others. Of course if you are investing in shitcoins it's very important.
The best thing to do is to keep everything in the top-10 coins at the same time.

I'm also one of those who invest on tokens that I think are going to be worth that what it is today. I have been keeping some of the tokens I got from participating bounty campaigns and just holding them. Though I prefer to keep ETH and BTC, I keep some of these tokens just to make sure I don't miss anything incase these projects suddenly moon and that diversifying may at least make sense :)

Mostly all crypto has the same trend in 1 periode, they are bullish and bearish by the same times, only different with the percentace of gainer and losser. So we should be only enter in crypto market when bullish and exit from it after target profit reached and use that profit to buy others asset ( not crypto ) that look bullish.

Diversifying will ensure that your luck to favor you regardless of one of two assets in your portfolio may fail to perform as per your expectations. The purpose of having more variety of assets in portfolio is balancing profits and losses in perspective thinking this way we may try our luck factor to be in favor of us all the times.

If you are referring diversifying in terms of price levels but with same crypto, that is being termed as "averaging". Diversifying is all about dealing with multiple coins/assets or even with multiple types of investments like 25% in crypto and 10% in real-estate kind of spreading out way of our capital. Hence, it has nothing to do with same crypto.

basically what you are saying is that "you have Microsoft, Apple,... but you don't have to buy their shares you can buy shares in a tiny company in penny stocks market which may not even be a "company"". and that is actually a comparison that has been made between bitcoin and altcoins. bitcoin is like the stocks market and altcoins are like the penny stocks which are highly risky, manipulated and unstable.

so when you think you are diversifying, in fact you are only increasing the risks you are taking while decreasing your profitability since the altcoin dumps are severe and fast. you can lost 90% of your investment in a short time.

The question is, you do have the money to invest on? Yes, there are lots of coins in the market as of now and diversifying would be ideal but on the current
market condition you would surely hesitate to put up money.Even most of coins is cheap but you cant be sure if they would able to pump out later on.If you do believe on such
project then its up to you if you do risk on or not.Instead on earning x100-x1000, you might lose -90% on your entire portfolio.

Not always,the trend will change with some coins so you can diverse at that time to make profits but obviously we never know which coin is going to change the trend so that is the reason people are stuck with few coins.

Yes, we have a lot of altcoins but they seem quite similar. they are also exchanges, they are also purses with smart contracts and some improvements in blockchain technology, ...
We have a lot of choices but don't have a different choice.
that's why many people say this is a virtual market. Investors only target the signal to buy, not the value of the business.

It sometimes we've been undecided and feels bad for the market but we can't make it right for this time. Diversifying is quite good if we choice the wrong coins invested and selling it in low prices is a suicide but this is the last option to open up for new opportunity otherwise will losing it at all. 

Since crypto market launched all price of crypto has high volatility when bull market the price can be pump to more than 10x just a few month,  and when the trend change to bearish the price can be dump to more than 90%. Learn more about the trend of crypto market by make analysis the historical price so we know when should enter and out from it,  there are alot of others opportunity to make money so we have to learn it and dont only jump in to crypto only.

its impossible to predict the price but it is possible to choose the best coins for diversifying  .  as long as you chose the promising ones ( i.e btc and eth ) you are already ensured that your capital can grow in the future  .


huh ? chosing wrong coins is bad and you cant expect for your capital to grow no matter how you diversify it .


why ? crypto coins didnt change . good coins are still good  and bad coins are still bad  , no matter what thier prices are  . diversifying is still the same bruh

to be able to find coins that have the potential to last long and can provide benefits every day is very difficult to happen even though I know the risk is that all coins including bitcoin can collapse but you have to be brave to face the risk of being able to make a profit.

At present there are so many variations in investing. The amount of coins in circulation is indeed so much and for someone who wants to do speculation they will not always choose Bitcoin. Many coins have a great chance to increase and this is something that every trader must choose .

Diversify is the only method to minimize risk and learn about speculation. This method need big money and mostly only take number 1 - 10 from coinmarketcap list, for safety of course. This method is not fails because all strategy depend market condition, calculate again and stop if the result is not worth.

I agree completely with your submission about diversification in Cryptocurrency.
A lot of people get rekt because of the singular mistake of putting their investment capital in one kind of coin.
One of the benefit of diversification is that your loss are minimized as you can write off loss using the profit from another investment.

I think in all cryptocurrency markets, fluctuations can make the market of a coin fall very deep and rise very high, we must know that. thats why you have to allocate the right funds if you want to diversify, and because the development of each coin is different, that's the function of diversify to reduce risk.

With this type of market, most of those well known coins can be use for diversion knowing that in anyhow big investors will buy and hold coins that
they think and speculate to run after bitcoin show some good strength, using good analyzation and do a lots of research about coins that have good potentials, large investors will take the risk and use the project aiming to hit good value after some time of waiting.

Diversifying assets should be equipped of full speculations coming from different opinions and analysis of many traders and investors around, which
been studied well by the person that will use this strategy with his own versions of understanding and trust.

Lol 2000% in single night is more than impossible and even if you diversify investments in several cryptocurrencies still the chance of gaining will defend on luck in which you are right.

And remember that pumping coin happen only once in a blue moon with onky one or two coins not for entire folio

It is true that these days, you have got a lot of coins to choose for investment and you can get huge profits if you are a bit lucky. You don't have to rely on merely bitcoin or ethereum, but there are a plenty of shitcoins too, you have to be very careful.

Diversify in many coins will give you big rewards and if you can find profitable coins, then you can make sure that your profit will bigger too. That is why if you want to invest in the cryptocurrency, you need to pick at least 5 coins for your investment and don't put one coin in one basket only. So for finding the profitable coins, you need to have skills to analyze the coins and hold it for a while until the bull market happen.

Of course we look for coins that could give us profits, this is the reason why we stay in here and make money.
I never entertain those shit coins you've said and I'll just keep to stay with bitcoin and some altcoins. We're to be fall into into losing if actually for it and keep searching for the right coins to invested. It is really time consuming to us but we need assurance and so we need to sacrifice for it. 

One should not see diversification as a problem in crypto currency but as the only way in which one can gain more than expected in crypto currency investment. Not only that diversification brings more profit but it also makes one reduce it's loses and that is why I remain an advocate of diversification.

Diversifying also depends on the current market conditions. Like last year, some people will mostly advise to manage assets, but if we diversify our portfolio too much, it can even harm our asset because most of coins also will decline

Yes because all altcoin also follow the trend of Bitcoin, and we can only make profit  from bullish trend only, others way to get profit from bearish trend in crypto only from margin trading. So we can only focus to analysis crypto trend so we will have best prediction when its times to long in spot market and shorting in margin trading.

I'm not sure because it don't work a lot in this bear market. And I don't like the idea that some people are buying much more shitcoins thancoins that has legit projects going on. Betting on shitcoins is good but only buy 1 or 2 of them and not like more than half of your port are all shitcoins because after they get pumped and you missed it then it is all over for those shitcoins.

But I don't want to get in the new coins because I don't know how good they can compete with the other coins. They need to give proof to us if they can increase higher and will be the next coin investment and I think the time will answer. I hope that it could be true to see big gains from one coin at those percentage because that means, we will make a big profit and it will cover our losses in the last year.

Actually the word diversification is generally among investors and holders and because of the long-standing bearish market this word is very often said, indeed because of the bear market diversification is one of your portfolio strategies to avoid greater losses and divide your investment into various places.

Buying strictly and holding shitcoin could be a very dangerous  game to play right, I understand this fully when but these shitcoins could also make a fortune when traded with if one is smart enough, though the game should be for the smart players.

Most of these shitcoins are the ones that give more Return on Investment than the reliable ones based on the current market condition but it is highly advisable not to leave any out, I mean, you have to invest in coins with viable projects and still take advantage of the ones that are shitcoins to make money before dumping them, just that one has to dump them as quick as possible.

The fact is that most users think exactly as you do, so at the most the amount of investment falls on the leaders of the cryptocurrency market, because everyone is afraid to invest in new projects. Of course, if someone has real confidence in the prospects of a project, then such investments are also very preferable. But today it’s really hard to determine the relevance of the project in society.

Your subject is against diversification while the body of your submission is in favor of diversification which side of the coin do you belong dude? I my opinion, investment diversification is the best way to reduce risk of loosing your capital.

About confidence stuff we would really aim for those who are reliable ones which we would really end up on investing into those top rank coins because we can already imply that these would go for long term
but there are really investors who would really tend to go beyond borders which trying out to put up money on new projects hoping that they can get in as early as possible and make huge profits later on when the project do gain support but these chances are getting slimmer day by day because most projects now are completely trash.

Sice you already talk about confidence  , maybe those kind of investors that invest on new projects are confident enough with their decision .  for me there is nothing wrong it  . you only know whats good for you the most so better if you can follow your instincs than following the others  .

Just remeber , dont put your eggs in one basket especialy to those new projects  because they are more riskier than the top rank coins  .