Bitcoin Forum

How should i diversify my crypto portfolio?

I feel like im gambling by going all in one crypto like ETH and the drops are hitting me very hard with its high volatility compared to BTC

This should be in altcoin discussion so far you are holding ethereum.

---

This is unrealized loss, I will not advice you to sell for now if you are capable of holding it for like a year or two. Holders make profit because they did not sell when they are losing, just like Microstrategy.

Know that altcoins are riskier, I prefer bitcoin, but ethereum is not bad among altcoins. Know that altcoins holding is like you are gambling, I can not advice anyone to hold altcoins.

diversifying looks good because it means you don't put all your eggs in one basket but this thread explains very well that it can also be dangerous Is diversification into different coins really a good advice for Newbies? (https://bitcointalk.org/index.php?topic=5199926)
but this is for bitcoin lovers not altcoin holders

Just choose bitcoin and make a big portion of your portfolio there. Next is ETH and you're doing it right. You don't have to diversify a lot as long as you've got the best in the market.
Tell us how much capital that you're longing to diversify? Because if it's not that a lot then you should just pick bitcoin instead and just leave it there but if it's really a lot, follow the first advise that I've said.

You just need to buy other coins as your investment. But to choose this potential coin, you have to do some research to find the right coin. If you just invest in crypto without doing research, it's the same as gambling and you probably won't be able to profit like everyone else.

Maybe you should try investing in bitcoin and try to buy more bitcoins if the price drops. But before investing in crypto, you should know how much money you can invest and don't spend all your money on it.

Buy bitcoin to add to your etheruem, buy more bitcoin, buy more etheruem and you are fine like that.


You will be gambling more if you were investing in altcoin that is not etheruem. Etheruem is also as reliable as bitcoin so hodling it is lesser risk to shit coins. The volatility is all over including bitcoin, it also give you profit like it drops your profit. If you don't like the volatility then you don't need to invest in cryptocurrency or you only hodl in usdt.

Crypto market means risky and diversify your portfolio in crypto market is risky too.

Don't invest all money into anything. Never.

Don't keep all your money in fiat currency. You should diversify it into gold and other things like real estate (if you don't invest in crypto).

With cryptocurrency, Bitcoin should be your first one for your portfolio. Next one is ETH by that I mean you chose a good one but a little bit bad because you put all money in ETH.

A next one is BNB. I think fiat currency, gold, Bitcoin, ETH, BNB are good for your portfolio. Don't diversify more in more altcoins. You will lose money with altcoins.

oh yes of course, diversify is very necessary in the world of trade and investment,
not even just in crypto currency, it can also be used in the stock market, because it can minimize risk.

Sounds like you answered your own question. If you want stability, invest less volatile coins. That on the other hand brings less profits as well if you don't know when to enter or when to exit. Also there's time frame. You should invest in terms of years, and not to panic for first real bear.

Ethereum and Bitcoin for me right are highly correlated to each other. They are both high market cap and seems the only different of Ethereum right now is the upcoming The Merge update which you can say the volatile is high for this but for me it's already done, from $1,000 and tested the $2,000 earlier, for me that is already the effect of The Merge update of Ethereum.

Just try to decrease the total amounts in your portfolios and then put it into the various coins that you are thinking that's legit. i do believe in this case if you are also facing a huge risk caused by sudden drop that happened in ethereum. Putting all in one basket is something a good thing but once it was going down so hard and your portfolios will get rekt. You shall try to diversify your portfolios. the hype for merged already gone. There's nothing to hope with ethereum

Diversifying is always good if you know what coins have a potential for long or short-term holding.
But IMO, I'd like to stick to Bitcoin and give a small portion to Ethereum in my portfolio.  Both coins are good to me and have the potential that could give a profit someday.

However, every time when there's a bear trend market, it's good to increase the amount in your portfolio, buying in a DCA way will potentially make a profit.  For now, I discourage you not to sell your asset since everything was down the price in the market, just wait until your profit were there and never sell under the price.

If you truly want to diversify your investments then I will recommend to you that you think twice about investing even more money in this market, you do not have to be a genius to see that when bitcoin goes down almost all the other coins begin to go down, and we saw something like this happening during the last few days, so diversifying in different altcoins is not going to help you much, so it would be a better option for you to select other markets in which to invest those 6k dollars.

that's not good to only focusing with one coin. I meant your money can make you more money when you are investing in the low cap coin. The low cap coins meant the more chance to growth. Mostly of people were also diversifying their portfolios. I think that you shall not waste all of your time to only invest in 1 coin. Think about this so many people earned bunch of money by diversifying their portfolios into the low cap coin as well. This must make you think to invest in the more coin.
I think that if you can consider this as a good decision. You must care with your money. your money needs to generate more money for you.

To diversify is to avoid putting all your eggs in one basket. Diversification to a certain extent means safety. Whatever happens to a single coin, it won't drag your entire portfolio. So diversification is the opposite of gambling or risking all your worth in one single coin.

ETH must be a good choice but diversification is a lot better especially because going all in into ETH means you left behind Bitcoin which is undoubtedly the most important choice of all.

I advise you to diversify to a few solid coins. Bitcoin of course should always be part of your portfolio. You may add ETH or XMR or LTC.

If you think it's risky then diversify your portfolio with some top coins only as you are new to the market and investing in some shitcoins can take your wallet balance to zero levels which is far more risky.It depends on how much amount you have and which coins you prefer to hold with you like currently you are all in ETH but you can share it with BTC and if altcoins then BNB,SOL are rather good options but you need to handle it yourself like the percentage to each coins and which one.

He already owns ETH and now he just need to add BTC to his portfolio is more than enough, no need for more altcoins, if you have money left, bnb is also a good choice for portfolio.

Portfolio diversification is only true when you hold mainly altcoins, it reduces your risk but when you hold bitcoin it is not necessary. The rest of the altcoins are all dependent on the movement of bitcoin and no altcoin will rise in price if bitcoin stands still.

Put all of your money into ethereum is a big mistake. You are actually new in the crypto and you didn't even aware if another small cap token in the market has same chance to go up like ethereum. You shall diversify your portfolios as soon as possible when market was still at the bottom like this.
This will help you a lot not only to decrease the risk from volatility but increasing the chance to make more money as well.

Then pick other coins and tokens with also have a good stance and potential.  Always diversifying your portfolio is good way to expand your asset in a much classic manner.  Well like the old saying dont put your money on one basket. Put it on others,  theres plenty of fish there and not just eth alone.  If I were you I'll look into low cap top 100 projects. Youll find a good ome there for sure.

i don't see any risk in holding eth, i consider it the 2nd safest coin after bitcoin, but if you want to diversify your portfolio for more opportunities to grow your assets and reduce your risk, you might want to consider adding some other coins

you can choose from 5 to 7 altcoins and especially don't forget to top up bitcoin,  a safe investment is an indispensable investment bitcoin
you can check top 50 coins on cmc to be able to allocate your capital

Putting all the assets we have in one basket sometimes makes us nervous. if you want to share your portfolio, it all depends on your strategy. you might be able to split 50:50 with bitcoin and etherem coins, or 35:35:30 for bitcoin, ethereum, or bnb. well, I recommend to divide 3 assets only first. You can replace the coins with the coins you have. however, personally, I sometimes divide my portfolio that way, or sometimes I put 50% for ethereum, and 25:25 for bitcoin and bnb.

This is how you build portfolio.
Source (https://academy.binance.com/en/articles/how-to-build-a-well-balanced-crypto-portfolio)


Yes it happens, if bitcoin falls by 2%, then altcoins fall by 5% or even more. That's why people keep their 50% to 60% money in btc until it's price goes to sideways after a parabolic move.

---

But it's still not as safe as bitcoin is.

better not put your money in one container. if you have big capital to trade at least share for ten coins which is good for you to save. it will cover the shortfall when one of them will go down. It is true that buying coins with an investment of all the money will get a big profit in a small increase but it is a kind of gambling because there is no definite idea of the direction of the price movement and usually only uses feelings.

Buy some bitcoin, eth and sol, bnb.

You want to invest in some microcaps coin that are under 1m marketcaps but with just a small allocation on your portfolio. If it takes off like 10x that small allocation will become your bigger stack

First of all, you need to clearly understand the nature of the market. As what I can see you, it is definitely a weird feeling and a lot of worries because you are still never yet familiar with the market condition.

I'd say you are not in gambling, you never gonna go guessing when choosing projects to invest in for as long as you know what you are doing. Many issues like this and that is because you are lack of knowledge. Tried to study more and adapt to the behavior of the market you'll somehow know that investing these high volatile coins gives you a chance to earn more.

Don't put all your eggs in one basket. There are lots of potential altcoins that you could buy. Buying Bitcoin, ETH and BNB would be ideal but make sure that you'll have strong hands because these coins are good for long-term investment. If you have enough capital, choose coins that could strike a good price when the ATH approaches.

Diversifying your Crypto Assets is the right thing, this will greatly reduce the risk of loss, but choosing the assets that you will invest in is equally important. It would be safer to invest most of the funds in Bitcoin, for example 50% in Bitcoin then share the rest in several potential Altcoins such as Polygon, Solana, Avax, and Ethereum.

You can take advantage of the portfolio feature on Coinmarketcap to list your portfolio, besides that you can also view portfolios of capital companies such as Alameda and Binance Labs.

Going all in on Ethereum isn't a gamble, its something that I can do and just move on, to.me Ethereum is the closest to Bitcoin so no problem in holding, but when it comes to how much I will be making that's why I look for other altcoins to invest money into.

The basis of any crypto portfolio should be bitcoin. Accordingly, you need to transfer part of ETH to bitcoin, so that its part is 30-40% of your deposit. In addition, it is necessary that you always have 30% in stable coins in case of a market collapse, when there is a good opportunity to buy coins at a low price.

You can split your portfolio between bitcoin and altcoins. Preferentially bitcoin should correspond to the biggest portion of your total funds, depending your investor profile. If you are a conservative investor place between 80% to 90% of funds in btc. If you are a moderate investors put something around 60% to 70% in btc. And if you are an aggressive investor, you can invest 40% to 50% in btc, while the percentage remaining you split among altcoins of your personal preference. keep in mind when choosing solid altcoins like ethereum, you are also decreasing risks, but when you pick altcoins like memecoins or any other useless project promising huge returns you are taking risks similar to ponzi and hyip investments...

For me, there is no proper way of diversifying a crypto portfolio. It all depends on that individual how he will divide his money. There are people that holds more than 10 crypto because they believe in the potential of new projects. While there are others who chose to only hold the crypto that already has a solid community.

Going all-in on eth is not that bad decision. It has continous development and has already done many contribution in the crypto space.

How about adding Bitcoin to your portfolio, and some more altcoin from the top 10 market cap.  This way you won't get burned if one of your holdings took a nosedive in its value.  You can also allocate a small percentage of your fund to a starting yet promising altcoin.  This way, you can have a mixture of long-term and short-term investments in your portfolio.

Majority here will think that it's better to invest most in BTC, there are old school thoughts that at least 60% will be in BTC and the rest should be divided on solid altcoins like ETH, BNB etc.

But if you don't like volatility, I mean if you are afraid that your portfolio going down hard when the market crashes, then you should diversify to other assets such as stocks, gold or even real states. But then again, you should need a huge capital if you want to do that.

ETH is a good coin and yes it is still advisable to diversify your portfolio so you wont get burn once the market crash. Half of you money should go for the top coins, it can save you from losing all your capital and you can use the other half for your trading activities if you are familiar with it, altcoins are the best option for this. Going all in is not a good strategy, avoid doing this.

You can start by categorizing the cryptocurrencies in the market. For example, exchange tokens, layer 2 projects, metaverse projects, nft projects etc. If I were you, I would continue to invest in solid cryptocurrencies such as Bitcoin and Ethereum, but you can try to diversify your portfolio by purchasing a few of the quality projects in these categories. I wish you good luck.

It's called as investment with lowest risk but this may be wrong. Ethereum can give a huge risk as well as another altcoin in the market. I personally think that investing in ethereum was not so bad but there are another altcoins that can give us decent profit and why rely with a coin that has a very big marketcap at this moment? that doesn't even make sense at all

You don't have to worry about short term price movements if you are staking something like NEAR or ICP for up to 20% APY. The staking rewards received will outweigh any gains you would have had swing trading and it definitely beats just holding BTC, which generates no additional revenue.

Going all in one crypto like ETH will not recommend, especially if you just buy ETH at a random price and it will be hard to make a profit.
If you only buy without analyzing the coin or ETH, you are only gambling with your money without knowing if you have a chance to make a profit or not.
You need to analyze every coin at the market to find which coins that have the potential to increase in the short, medium, and long term so your waiting time is not wasted.
You only need to choose the potential coins and ignore other coins that do not have a chance to increase.

I am always checking the top 100 altcoins and researching among them. There are so many potencial altcoins. It's better to invest in many altcoins rather than the only one. I diversified 75% of my fund with BTC, ETH, LTC, EOS, BNB, ROSE, and DOT

Investing in some of the top altcoins is fine however to do so with the intent of reaching some level of diversification is at least to me a mistake, because that is not really the way in which you can truly diversify your capital, and as you said if that is what you want then you need to use other markets in other to reach that goal, however this can also be a risk as the economy is not doing well and we could watch an overnight crash of the stock market and your losses could be massive despite the diversification strategy you were using.

In my opinion, diversification is the diversification of different investments like cryptocurrencies, stocks, gold... that's really called diversification to reduce risk. We split our capital to invest in bitcoin and altcoins, which is the right thing to do but it's clearly not a diversified form of investment.
The crypto market is completely dependent on bitcoin so when you hold altcoins it is also very difficult to avoid losses if bitcoin drops in price so diversification in this case will be less effective.
@OP if you are afraid to hold ETH then you better move your assets to BTC, BTC is the best choice in crypto.

you should focus on long term if you're sticking in ethereum because it will not work for you and will become gambling if you want to gain quick profits in it.. There's a lot of crypto currency in the market, indeed where in just learn how to make technical analysis as its the most important thing when it comes choosing a good project to make profits.

if i am the OP, i won't forget to put some money in btc. remember, most alts come and go in this market, but btc keeps its top position throughout these years. even ETH, just comes in second to btc. to diversify, he can always start in the top 10 coins, and then, dig deeper, check their potential, do they have bright future? check their developments, are the devs still active in their target activities? do they continuously innovate and look for activities that will make their network relevant to the market?

Make sense but you are making a wrong prediction. It seems like ethereum is still trading under 1,7k and that means if you have been loosing small amounts of money from your portfolios. It's better to diversify your portfolios if you must also face the same risk like when you are investing in ethereum.
I see no difference between big or small coins. The only different thing is possibility to make money from small cap coins far greater compared with high marketcap coin.

Investing in one of the trusted crypto doesn't hurt you big. Just look upon the investment, your ethereum that dropped down to $900 range is now above $1700. Even bitcoin haven't given this growth by the time. According to me, when the invested asset is in the top order the risk is low. However it is always suggested to have a diversified portfolio in which there needs to have an allocation for bitcoin.

Diversifying is not bad because it is also risky to put all your eggs in one basket. However it depends on the coins that you're going to choose since it is also risky if you're going to invest in just any coins just to spread your portfolio. Thus make sure that you conduct a research for the coins that you'll choose. But you already have ETH, you can invest in Bitcoin because its a top coin. IMO established coins are the best option because its worth it even you need to wait for long period before you can profit.

Yes, they might happen again but also won't happen again, who knows? but as you can see bitcoin fell to $17k and ETH to $890 but as soon as bitcoin surged to $24k ETH quickly crossed $2k. Assuming your fear comes true, the market will continue to fall and your ETH will also drop below your buy level, but if you are a long term holder then you don't need to panic, because bear market won't last forever, the bears will soon have to leave and make room for the bulls to come in. Think if BTC hits 100k, then ETH also has a chance to hit a new ATH of 5k USD or 10k USD which is entirely possible. So I think you should keep holding your ETH.

That is why investment is not only done on one coin, you can find another coins that can provide good returns at a certificate, ethereum is good in the long term but is not enough to relay solely on one coin.
Therefore you can convert to bnb and to other potential altcoin, because in the market many coins that you can find

Put most of your coins into Bitcoin and then ETH. Use the rest to invest in rest of the top 10 or 20 altcoins. If you want to try your luck, invest in some random coins that you think has a good potential (i mean those that aren't bluntly scam coins). Don't sell as long as you in loss.

ETH might rise more soon before the merge happens. You can try investing more in ETH and then sell it as soon as the merge takes place.

It's an altcoin so no surprise that it's more volatile than Bitcoin.
You said that you gambled in ETH. You must be ready with the huge drops and at the same time, be ready if there is a huge price spike up.

How should you diversify your portfolio? What will I said will be just my preference and I know that others have different strategies in how they are diversifying their money.
50% BTC
30% ETH
10% other top 10 coins
5% top 50 coins
5% meme coins or more risky coins that you want to gamble your money with.

Like I said, that is my preference and others are doing differently. BTC and ETH are the ones with most allocations because they have been there all the time. They are at the top 2 spots in market cap for a long time and whether it is a bear market or a bull market, they stayed at the top so I think investing in both of them is a good choice. You can copy mine or others depending on the amount of money that you are willing to invest.

I will say diversify crypto portfolio is really a bad idea since crypto market are mostly depends on Bitcoin, if you have bought 10 coins and the market is dump, 9 or all of your coins will dump too. But if you want to diversify your investment portfolio with other assets e.g. gold, real estate, stock etc it's a wise idea since each assets have different characteristic and market. So if gold price is decrease, you still have Bitcoin, real estate and stock that would cover the lose.

I think that you shall not include EOS in the list. This project is almost die. I think that EOS must be replaced with a better coin other than it. I can't agree with it. The rest was good to be used as investment but it's not for EOS. The fact that if EOS didn't even surge.
This coin almost become a forgotten coin. EOS is not worth anymore to be used as a way to invest your money.

EOS is a forgotten coin by many, I noticed such a trend that when the majority loses interest in a coin, then it happens that it can grow well. But I would not include it in my portfolio, I am now leaning towards the fact that only bitcoin can be held in a risk-free portfolio, and as for altcoins, I still think that you need to be very careful, at least until a bull market will start and we will see which of them is able to rise.

diversification is indeed a good thing in trading, especially investing, it is highly recommended,
because diversification can minimize risk, of course if you want to diversify your portfolio,
you only need to choose 3 coins, because if you diversify a lot of coins in your portfolio, you will be confused, I guarantee that

Exactly my friend, the OP has an important role here, depending on the understanding you have, if a certain coin can provide a suitable return, then he can take part in it, the decision greatly affects the success rate.
BNB, Sol, Dot, Metic can be chosen, but I prefer BNB for the main investment, maybe later it can be converted as needed, other coins that you want to invest

You should also buy some Polakdot because Gavin Wood is a really good coder and participated in launching Web3. Polkadot is Web3's official cryptocurrency and Web3 will be huge.
Better don't miss such a gem.

The easiest thing is that we choose the biggest portion that we rely on, do not share the portion of assets evenly because we will be difficult to save assets when it happens, because usually cryptocurrencies have the same trend or price graphics and depending on top coins like bitcoin and eth.

Ethereum is not a bad or risky type of project to worry about But still, if you want to diversify your portfolio then BTC and BNB are best.

In my study through google search, we have many options to choose cryptocurrencies besides Bitcoin and ETH. From what I can see, it looks like you just poured your capital into a coin like ETH which is currently down a lot in the market due to volatility.
And no matter what cryptocurrency we buy, there is always a risk or gamble involved because of the volatility they have.
Maybe, the best thing to do is to check and find out the top 10 cryptocurrencies and choose the ones that you think will give you more profit in the future.

To diversify your crypto portfolio, you should buy coins that have a chance to go up but you have to research which coins have that chance. If you don't research or analyze the coin, you probably won't have that chance because every coin on the market has an equal chance of increasing. You must be aware of this to choose the right coin for your investment.

But which coins have a chance to rise in price? Nobody knows! That's why it's important to do at least some research, to check for yourself what's behind some project... It would be so easy and simple if we would know which coin will go up in the future, I guess we would stack that one until insanity, selling everything we have and waiting for the bullish periods!

Diversifying means choosing multiple investments instead of going all in one! I guess many coins and tokens have potentially great futures, but nobody knows anything for sure! It's why people need to be ready to take some risks and get into what they believe, not what they heard from others, we should make our own choices and simply trust them!

As long as you only choose bitcoin, you can expect to make profits in the short, medium and long term. But if you want to buy an altcoin, maybe you can analyze and research the list of the top 50 coins on CMC or CoinGecko because I see the potential for it to be bigger than the coins outside that list.

Choosing coins will never be easy because each coin will provide information that their coins will increase in the future. But in reality it won't be because only coins with strong support will really have the potential to go high in the future. So we have to analyze the coins one by one to find the right coin before buying.

That's why SIP is Very important for SIP let's say you have 50$ DON'T invest whole money Try to invest 10$ wait for a month then invest another 10$ and ... In these way we can get the Minimum lose
And why are only Investing your money in Eth you can diversify your portfolio into different coin so that if some Hack or Exploits such thing happen then you may not lose all your money You can take the help of Various Platform to find the low marketCap coins like Coinmarket Cap , Coingecko... To diversify your portfolio

Usually, the dropping and rising price in cryptocurrency is very common and temporary because the high volatility.
What we can do is minimize our loss by not putting our money on a single crypto coin.
Beside ETH, there are some other alternate good coins to buy such as BNB, MATIC, SOLANA, etc.

First of all divide your portfolio into twor parts. First to invest in current Market while hold for next dump.
First Part also should be divided into three parts
1: 50% for Low Risk Coin like BTC , Ethereum,Matic and Cardano
2: 20% for High Risk Coin like Shib,Ape and Dogecoin
3: 30% for Next Trend coin like Sand,Mana,OP and Lido

You have not mentioned how much fund you have, if you write it will be more easy for us to give opinions.

It also makes it difficult to predict crypto price movements and people who have been here for a long time are already familiar with it,
every trader does need to do that and they also have their own way of minimizing risk,
the coin you mentioned is also a good coin and has the potential to continue to grow

Well, it was too risky investing in a single coin, you need another one or even more to accompany it and of course, for some profit assurance, if ever you lose in one project, there is another to help it recovers fast.
You can retain ETH in your list but you have to add another coin. This is a common practice of the investors, I guess we need to apply this as well to ourselves knowing that it certainly works for the majority. 

In any investment, we should never spend our capital to buy only one asset, it is too risky to do. As many experienced investors say, never put
all your eggs in one basket. This means that investment diversification is very important to reduce our risk when investing. As you have explained,
suppose we invest in several coins, if we lose from one coin, we can make profit from other coins. Although ETH is indeed a safe project for investment,
but it would be much better if we also invest in some other coins. What is certain is not to list too many of our portfolios, because too many will be
difficult to monitor and ineffective in generating profits. I think 3-5 coins are enough for investment diversification, make sure the portfolio list
contains potential coins. My advice is to avoid investing in new projects or shitcoins, that's a very high risk and will likely only make us lose money.

Perhaps, it was the choice of the majority and I can't imagine why OP is trying to ignore it and curse them.
As we can see that despite the volatility of Ethereum, many people are still having the interest to invest and hold this for many years because they know holding this project is certainly profitable, unlike shitcoins and hyped projects.

Well, nothing to say about BNB, something it was worth enough to invest with. Keeping those on the top coins in the market is a good choice, can't deny it.

With the exception of Bitcoin, if you buy any altcoin now, you will be in the same position as if you held ethereum at this time, perhaps even worse. Ethereum is a good enough investment, I think OP doesn't need to diversify his portfolio with other altcoins, if OP still wants to diversify then bitcoin is the best choice. We are in a bear market so all fluctuations are normal, everything will settle down soon so don't worry too much. Be consistent with your choice.

When there is decrease in the value so you can never make an idea in which you will face loss, you will never want to drop your money. So in order to reduce your risk there is an option to divide your cash and put differently in different sort of investment, you should use distinct strategic plans. You should choose coin which is good in giving payback, selection of distinct projects and distinct coin will aid to overcome your loss.

Only crypto newbies will feel depressed when their wallet shows less value because of bear market, I have been into crypto for long term and the fear of losing money made me lose good opportunities, I will look for more money to buy dips instead of worries.

The market sell off is didn't affect you only, it has affected everybody, the reason why Ethereum is dumping right now is that some people are speculating that the merge may not go successfully and the traders are selling, and bitcoin is also dumping since last week but holding Ether is not bad for your portfolio, it will grow very well in the future.
If you want to hold or diversify your portfolio, add Solana, Avalanche, Fantom and Harmony, those are the layer 1 protocol projects that will become the future of cryptocurrency because they are the one that follows Ethereum right now and not shit coins.

I would go against this, I would guess that we shouldn't be really assuming that we could be investing just on bitcoin. I mean think about it this way, there is a chance that bitcoin could be your only ever investment and still would make you a lot of money. That's why I believe that we shouldn't be worried about it, bitcoin is the king. I get that gold, stocks, forex, oil, real estate, not anything could be just "one" investment.

But at the end of the day, we can have bitcoin alone and that would be a great deal, it could make you earn a good amount of money and that could make you a rich person. I am not all in bitcoin, but I could be and I would be fine with it.

If you diversify the income into Ethereum and Bitcoin is not the good option. Because the dump and pump in both this coin will occur in same time.When we inverse 50 percentage of money in the Bitcoin or Ethereum. The remaining money should be diversified to 10 trusted altcoin.Or else, you split the second 50 percentage into two half. First half tends to the most traded altcoin and second half will invested in good tokens.

What is your purpose for investing? Short-term or long-term? This is currently still in the bearish era so the price of all coins including the top coins is still decreased. That is why one of the strategies to be implemented during this bearish era is by letting our portfolio and adding some top coins if possible. Diversifying in crypto investment is important. We can diversify into some options. But the most crypto to invest in and have is Bitcoin at first. Then, followed by ETH and other top coins. I am sure that althought hey are still dropped right now, they will be able to srvive and the rise up again in the enxt bullish era.

Accumulation is the key since everything is really cheap compared on previous months which it is really just dumb that you wont really be having considerations on adding up some coins on your port.

Well, this do vary on someones financial capacity since not all does have the money on doing so.Therefore, you should really act accordingly on whatever risk management you do really have.

Diversification is best but not all does have the capability on doing so thats why it do really limits out possible profits on someone that might able to take.

The main goal of diversification is to share the risk by investing in multiple coins. for the distribution of the portion of the funds we invest, of course, varies, according to the level of risk of each coin. in this case money management is needed, to maintain our psychological stability against price volatility. Of course, the BTC and ETH coins are the biggest ones to invest in, and the others are according to their respective analysis. and I warn you to focus on long-term investment until waiting for the bullish season, so that we are better prepared to hold it, if the bullish season comes sooner, that is a bonus for us.

Rather if you did the same with bitcoin you might have had better outcomes.

However I must clarify one thing - any top coin on CMC or CG list can be a profitable coin if you get in at a low price. Possible that your buying price was much higher.

So instead of diversifying the number of assets, you should diversify the positions of the same coin. Buy the same at lower price and wait for the price to rise so you can sell.

You can also buy Bitcoin, but since your reserve money might be low at this point I would not suggest it as the first step. This can be done when you get your next salary. Please do keep an eye on charts and buy accordingly at low price, otherwise don't buy.

90% in new altcoins and 10% in BTC, this could sound crazy but you will triple your investment this way, every year that bull market comes almost all the coins and tokens in top 20 gets replaced by new altcoins, that's the key, find new projects that solves the problem of old top ranked altcoins and you will make incredible gains.

Undoubtedly, investments in altcoin can bring much more profit in the bull market than bitcoin. But this will happen only if you have correctly chosen altcoins for investment, which is sometimes difficult to do without having the necessary knowledge. And if your choice turns out to be wrong, then instead of profit you will lose your money.

if you invest without using analysis and especially if you invest short term of course you will feel this is the same as gambling. actually investing in ETH is the right choice because ETH is the king of altcoins and investing in ETH has a lower risk than investing in other altcoins. but even so you also have to do an analysis to determine a good point to buy, especially when the crypto market is in a bearish phase.

That is crazy but that is what I see during the last bull season. It was just to happen that there are more hypes coming to altcoins that could bring more profit to the investors, even shitcoins are still profitable during that time. But as we are facing this bear season, we can't expect altcoins to give us more returns. However, holding potential coins ready for the upcoming bull season is really a good idea, we can just think about x3, x10 - that can be possible if we are too lucky to sell them.

You need to allocate your portfolio to different asset classes, ranging from stablecoins to classic assets that have proven themselves in the market for a long time, such as BTC or ETH. Stablecoins are sure to be useful for redeeming suddenly cheaper projects you're following, or those projects you already have in your portfolio. Don't forget about young projects. They too should be added to your portfolio for diversification, because young projects grow faster than older projects.

I think that Bitcoin and Ethereum are the worthiest cryptos to hold. If you are going to diversify your assets, Bitcoin should have the biggest portion. Then followed by Ethereum itself. As long as you are not putting other shit articles, I think that these two cryptos are very worthy. But if you want more altcoins, just analyze first from the top altcoins. It is not guaranteed of course because a big or top coin like LUNA could also crash and have value. So, this needs high carefulness when going to invest and keeping altcoins for long-term holding.

Seriously?
What altcoins are they? It is too much in my opinion and spreading money to too many altcoins will bring higher risks. Moreover, if he chooses hype coins or tokens, very high risk. For, not all people are aware and qualified enough to pick the right token, buy and sell in the right time. This is higher risk

When it comes to diversiying your crypto portfolio there are some things I like to have in the mind.  First of all I like to have crypto that is mainstream and not a 'pump and dump'.

We all have crypto portfolios with coins that serves no purpose other then they were free or marketed well but we still hodl them with hopes they make extreme gains and fast money will reward us. For me its the big 3 of bitcoin, ethereum and bnb for new investors.

It's not gambling, you just made a common bad decision made by a new investors. My advice would be to think again how much could you afford to lose? If you think you already lose too much, holding is not a good option, you will only sell your ETH when the price go deeper because afraid that you would lose more, you wont make it till the price go up again, than it might be a good idea to sell some of your ETH and start diversifying your portfolio, buy 3 - 4 other coins. If you think you could afford to lose more, than you holding it will be better, because sooner or later the price will go up again, you just need to stop checking on your portfolio everyday.

New projects that solve the problem is a utopian thinking and is never real. The coin that has solved a problem is actually the top coin in the entire crypto space, bitcoin. None of the other coins has been able to solve a real life problem but only beat around the bush. Cryptocurrency is not a silver bullet to every problem.

Newly launched altcoins are worthless if you are investing in them right at launch. Going in 90% is suicide. I hope you know what you are doing, because even we older members who have been watching altcoins for years, would never recommend it.

If it was so easy to triple your investment, there would no longer be so many poor people in this forum or elsewhere.

In fact, bitcoin, ethereum, and bnb are pretty good at asset sharing if you feel that putting everything in one basket is stressful and can also cost you a lot of money. Besides, if the three coins are not so good for you, you can still choose the popular coins in CMC. very many coins that still have a fairly cheap price, but have great potential in the future. however, you can do it yourself. I only recommend 3 coins or tokens to hold, because if there are more than that, it might be more difficult to manage.

After all these years, witnessing many cycles, I think it's always best to let BTC be a very big part of your portfolio. Nowadays, I personally stick to atleast 90% Bitcoin. The other 10% can be used for solid altcoins, such as Ethereum as you mentioned. The very last 1-2% (of the 10%) can be used for some non-mainstream / new / quite unknown altcoins or coins that have not proven themselves yet. I only buy them with what I call "play money". It's a better investment then spending it in a casino.

It is smart to diversify your portfolio, but don't expect it to help you avoid losing value during a down market. It is also much more difficult to keep track of several coins than to do it with one coin. For long-term investments, this is easier to do, but if this is a short-term investment, then constantly monitoring several coins will be very tiring. If the portfolio consists only of Ethereum, then where Bitcoin can definitely be added.

Short-term investments must be monitored properly, because profit targets will be taken in a short period of time. So it is necessary to read a good candle chart. Without doing a good analysis, trading is only done guesswork and the same as gambling.
Portfolio diversification really needs to be done, and what I personally think is mandatory is bitcoin and Ethereum, these two coins must exist and for other altcoins you can choose the best on the list of the top 10 coinmarketcap or coins that you think are the best.

Both has very high volatility.
I'm pretty sure if you are saying gambling, then you must be doing something wrong when trading. Have you done any research and not jump into it blindly?  Drop in trading is pretty normal hence it says very volatile.

I would prefer to spread your investment into 10 top coins on coinmarketcap instead of just putting it into singular coin as the title says. So, your investment won't become a disaster if one coin dumps in one moment.

Dividing our assets into projects that have just been launched I don't think it's the right choice for us to do when the market is sluggish because under these conditions usually new projects will be less attractive to investors, especially if the project does not have a clear goal to undertake future developments so there is no guarantee that placing assets in such a project will minimize our portfolio risk.

You really need to do some tests before reaching the point that you are now satisfied with your plan.

If you feel your current plan is not working the way you want, challenge yourself to solve that issue with that plan. If by means you think you did everything well but still have no result, you need to extend your patience to work it out.

After several tests, consider switching strategies and change some coins on your portfolio.

Did you know that ethereum is the most safe coin on the market? I don't understand why OP is afraid to hold ethereum but if he wants to diversify his portfolio in this case. The best way is to allocate half of the capital to bitcoin, no coin is safer than bitcoin. New altcoins are never and never are suitable for investment and are considered safe.

Diversify it the best way you know how do not let other people decide for you. Do your clinical research and go for the best ones that suit you, however, you can seek advice on areas that aren't clear to you. But I would advise you never to leave out BTC and ETH, they remain reliable of them all.

I guess you meant "Critical" - it works both ways though. ;D

Honestly, if you did critical research in a critical manner, you would realize that zero assets are worth investing in coming in altcoins. The only one making a mark is bitcoin. Of course the top 5altcoins can be given some slack, but beyond that the risk increases way more than the reward.

Besides with the number of shills working day and night to promote shitcoins, there is not end to the number of worthless coins out there. Ending up with a large number in types of coins will only hurt your long term profit, rather keep it limited to specific coins that have proven themselves in the past.

Well in my opinion you should be heavy bitcoin and light everything else.  Everything follows bitcoin in price pretty much so why not own the price mover itself.  Then I'd go little bit into some high valued alts, like eth, matic, etc.  Then last maybe a very small fraction into something that could take off but won't hurt if it falls to nothing.

Whatever you do steer clear of meme coins

ETH is a good investment, aside from bitcoin, I would recommend holding it along with bitcoin during this bear market. There may have been a rush on his part to invest and he did not have time to do extensive research before deciding, but ETH is a suitable investment option.
Once a bull market happens, bitcoin will go up in price and it will be the 2nd coin to go up in price after bitcoin and ETH is very good at creating new trends in the market, so I personally feel safe holding ETH.

If you hold another altcoin it is a concern but not with ETH. Portfolio diversification is good, but holding too many coins while the investment capital is not large enough will not bring you good returns.

Until you sell the eths, that is, you transform them into fiat you have not lost anything you just have to wait for their value to return to an acceptable value for you, as regards the diversification discourse, i will give you my example a safe part on witch i can count on in stable coin then btc, eth, bnb

Diversification is indeed something that is recommended in trading, especially in terms of investing.
the purpose of diversification is because it can only minimize risk, of course if you want to diversify your portfolio
you only need to choose 3 coins, because if you diversify a lot of coins in your portfolio, you will be defeated and will make you confused later.

That's how crypto coins investment, I have filecoins and currently -97% of ATH, not only Ethereum but all altcoins, having multiple portfolios is better than holding one coin, but still be careful when the market situation is like today, coin prices can just down because of the many policies implemented by the government can change everything

basically investing in crypto has a high risk and we cannot avoid that risk, but you can reduce that risk by investing in large altcoins such as ETH BNB and matic.
Investing in new altcoins has a very high risk because the price movements of new altcoins are very volatile and easy to manipulate. so I do not agree with your statement, especially if he is a new investor.

Diversifying is not hard but one must only need a common sense to be able to do it. Say you have 10 dollar with you. You should not all in that 10 usd in 1 coin alone or in your case eth but you should divide it with another coin, it can be one to coin for this small amount. It depends on you if how much % you will allocate with other coin but you can always put more in your favourite coin.

It's normal to feel that you are gambling because we are actually gambling here since we don't know where the price will head to and what attitude we will make later on but eth is a top coin so what you did of all in'in in your funds is not bad. Just continue hodling or you can also buy more during the dip.

Yes, investing in new coins is not recommended for newbies without any knowledge of the market.
OP is holding ETH as a top coin but if he feels unsafe investing in only 1 coin, he can diversify with bitcoin and possibly more BNB. Absolutely stay away from new coins, although new coins can bring us great profits but think of the risks we will face. Holding ETH, if it were me I would feel safe but for him he is not satisfied means he is not ready to take risks so he should not invest in new coins.