Bitcoin Forum

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.


So what would be the right strategy of Diversifying Crypto Portfolio...

We also hear:

“Diversification is protection against ignorance (https://grow.acorns.com/warren-buffett-on-diversification-for-most-investors/),”

or:

Diversification is selling the winners to buy the losers. (https://twitter.com/saylor/status/1330537116258996226)



Buying only Bitcoin or at least 90% Bitcoin.


That is why it is better to invest than to play roulette (a.k.a. trading).

Thank you for this Helpful advice.

Some Youtuber or crypto Analyst says. put your money in different coins, memes, Exchange coins, Metaverse and gaming coins, DeFI coins etc
What is the Psychology behind that advices.

I don't know about the psychology, but as I said before, diversifying is about reducing risk, but reducing the potential return as well.

In classical investment theory, one must diversify to avoid losing everything. If you put your money in shares of a single company, there is a very high risk that you will lose it all, even if the company is a good one. However, if you divide your investments among several stocks, properties, commodities, etc. you reduce the risk a lot.

In the crypto world this seems silly to me, as all alts have been proven time and time again to lose against Bitcoin in the long run. The only more or less solid contender is shitEthereum. There are many fancy alts that promise they are going to be the next Bitcoin but just as quickly go up as they go down.

I would recommend you diversify but into other assets. If buying crypto buy Bitcoin, and if anything a bit of Eth or some other you trust (lol) and if you want to diversify more, buy stocks, mutual funds, RE or commodities.

Not all altcoins is dependent on Bitcoin price movement. Some of them are in opposite trend to Bitcoin during dump, It depends on how the community of the project support and value the project. Most of the supporter of coin usually consists of just traders that's why it was weak everytime Bitcoin showing a strong selling pressure.

Diversify portfolio is good but don't do it on a bearish market because it will just hurt you badly. Diversify when the market starts to recover. When market is in bloodbath its much better to change asset to stablecoins.

Don’t create the fuzz of alts and it’s dependent nature on bitcoin. Simply consider every coin as different one and then invest. It would be seriously damaging if you gonna predict the future of altcoin based on bitcoin data itself. I mean what do you know about the altcoin? That project might be booming this year, there might be bigger developments as compared to the previous year or even month which may bring good economic conditions to that project. It may just show different % movement in the coming days. That’s why you should not create portfolio based on bitcoin movement’s at all.

Diversification is good because if done at the right time, in due time you get the benefit. The way to invest and diversify is when there is bear season. Buying low is the best time to diversify and wait to sell high. There are speculation that after bitcoin bull , the bull for altcoins will come so maybe investing this time to sell immediately the altcoins begin or waiting for next year bear to buy and hodl for the next bitcoin halving.

Yes, you shouldn't put all your eggs into one basket, but that doesn't mean that you should put them into random coins.

Meme coins are not the way to go unless you like to gamble. Exchanges coins are also not something I would recommend, they're way too centralized and all it would take for these coins to crash is for the exchange to have some issues with the regulators.

Sure, the markets can be volatile and difficult to predict but you should always follow the fundamentals and not the hype, if you're only looking for short-term profits, then this may not be for you.

Not all coins dumps there are still some coins that was left going up along with the Bitcoin the reason why you shouldn't put it all along in one basket is that if the not all coins dumps at the same time and some are still going up. It's good for your fund so it will not be easily lose a position that was just my personal opinion and I choose to diversify my portfolio rather than staying on one cryptocurrency.

Keep building your portfolio and know the exact time to sell a specific coin. The cryptocurrency market cannot be predicted so, I cannot state exactly what coin will make it to the top or to $15 from 5 cents. So watch the market and read more of white papers. this practice will guide you about different projects. listen to your instinct only. When you are told not to put all your eggs in one basket do not ignore the advice because the volatility of cryptocurrency is unpredictable. If you have let's say 2k to invest watch the coins that have pumped and stayed for quite sometimes before going bearish, check the interval at which it took for the coin to go back to it's previous ATH.

Because, I remember a specific coin Nano that made it to $15 when bitcoin was at 50k early this year, but fell back to $5 when bitcoin slacked back to 29k but after the wave of bitcoin to 59k again the coin remained and was dangling at $5 - $6 which was not a good sign. Altcoins cannot be predicted like bitcoin, but it is better to spread your net of baits (funds) to the river of cryptocurrency. they is no way the fish (profits) won't get to you. Good luck

Still, it doesn't mean that you shouldn't diversify your portfolio. There would still be instances where a coin would go up (or down) regardless of what Bitcoin does after all. Plus assuming what you said always happens, then wouldn't it be the same if you invested in Bitcoin or diversified it? It'd go down nonetheless since as you said, it follows Bitcoin. Find some coins that you think could go premium, those coins would go up naturally even if it went down due to following Bitcoin, you'd still profit in the end imo.

Maybe you can diversify your portfolio when the bear market comes to have so many options of coins to buy. But that will be okay if you want to diversify your portfolio now because you can see many coins will have a chance to increase higher in the next altcoins season or bull market. But unfortunately, that can make us confused to select the coins that can increase as many coins already hit the highest price.

When bitcoin is down, you can buy bitcoin but you can give your attention to buying altcoin but you need to look at how deep the altcoin price will go down because sometimes, the altcoin price can go down too deep. So  I am sure you will have your own strategy for diversifying your crypto portfolio.

I disagree that portfolio diversification is generally good advice. Sometimes it works, but for me there are much more important rules. From my trading experience, I would single out 3 main tips.

1. Buy only when there is complete confidence that the asset will rise to the price that you set for yourself as a sale target.
2. Don't set yourself too long-term goals. It is better to retern into cash and wait for the next convenient position than to be frozen in the asset for an indefinite period.
3. Follow a pre-planned strategy and do not change it when you have already opened a trade.

If you follow these rules, then you can not scatter eggs in different baskets, but make money on shorter periods on successful coins.

Even if that diversification divides assets, then that's what I do and it's still profitable for me. Your words seem easy, but they're hard to execute. Strategies can be planned but sometimes the market demands many alternative strategies to do. Sometimes that makes me dizzy. In addition, sometimes there is greedy nature that makes us often lose. Everyone has a different trading strategy, maybe your strategy is like that. There are several different people and it adapts to what they think is most profitable.

The more reason for you to have more BTC compare to alts when you want to diversify your own portfolio. I guess have 70% Bitcoin and most of the alts would compose only 30% of the overall portfolio. Bitcoin should be the utmost important since it's the most liquid asset in the market.

The concept of diversifying the investment portfolio is called portfolios that do not move together or are not linked to each other, and therefore most of the prices of all cryptos are closely related to Bitcoin, and therefore investing in a thousand crypto and in one , the two the same which is placing eggs in one basket.

The best thing is to keep the cash and try to distribute the investments to achieve a different gain, but we cannot consider it a diversification.

Just don't diversify a lot because that can also bring you down. Invest to the top coins after you think that you're holding enough bitcoin already. We want to diversify as much as we can but in my case, it's more than 50% of my holdings are in bitcoin. While the rest, they're in altcoins including Ethereum which has the biggest part. I don't know my strategy in the near future but it changes from time to time because I also rely on the market sentiment which makes me buy more sometimes bitcoin and altcoins that are on the trend.

Diversify with good coins/tokens, since the last peak Bitcoin and other good altcoins was able to rise together so I think the scenario when Bitcoin pumps and altcoins will dump are just part of the history and now we are in a new era when the pumps happen, good projects will also ride with it. Always know how to diversify because its too risky to just invest on one option even if its Bitcoin, don’t miss the chance to make more money here in the market.

Diversifying is always been recommended specially into this market which it had been always been suggested because if you do just focus on only one and tends to dump out then theres no way for you to recover at least out of other investment you do have thats why the more the better but we know that not all would really be having the money
to invest on various coins and just ending up on investing on single point thats why we do really miss out this kind of investment method.
Even if we wanted to but we dont have funds to be used then we wont be having any choice.

I would not say that's the case for most of the time. Things could go up and down without the need for bitcoins existence or how that's moving. There are times when we could see bitcoin staying still and altcoins having an alt season, we have seen that multiple times so far and I agree that there is definitely a case things could go up individually as well.

I agree that most of the time when market moves then it moves all together and it doesn't move independently, but it isn't all the time, it is only most of the time. Which is why if you really want to invest into something that is not bitcoin then you should be able to do that however you want.

Regardless of which way the market is moving, you need to keep part of your deposit in stablecoins. And if the market unexpectedly undergoes a dump, in this case you will have a great opportunity to buy coins at a reduced price. In addition, part of the deposit should be directed to the purchase of BTC and ETH for long-term hold.

First, before talking about diversifying you must know what coins you need to invest and make sure you do your own research before investing.
Second, diversifying is being used if the market is starting to dump like most of your coins are in red and you think it's the right time to sell because bear will be coming soon. So you sell those coins who doesn't have the ability to return back to normal again or not that profitable if you hodl them longer.
And third, only hodl Bitcoin for long term or buy more of it if there's a chance like dip/correction/dump/drop. But if you have a better understanding to a certain altcoins you can either buy more of it and it hold it for a long term investment or just don't but instead focus it more on Bitcoin.

Having some funds on stable coins would really be not just on making yourself secure on volatility but also you could really able to get in when you do see some opportunities which means its a good measure to have this kind of reserve as always.

Im doing this eversince which i could say that it is really that you could really get in without the need on waiting up for some deposit confirmations
and for those who havent considered this one out then you would really be finding it for yourself.

I think you have the wrong idea, when you read some books about diversifying your portfolio the authors are not really talking about buying several assets that fall in the same market, instead the authors are talking about buying assets in many different markets, so if you really want to diversify your portfolio then besides bitcoin you need to buy some precious metals, stocks, bonds, art, real estate and commodities, no diversification is possible if you buy altcoins if you already hold bitcoin because as we know they follow the movements of bitcoin most of the time.

Well, this is right and I agree.
Diversification of your portfolio does not mean you always have profit, sometimes you need to divert your portfolio when you see bitcoin is down and you need to divert into a stable coin which is later on repurchase after the market back to the price. Invest money on which coin you believe that it will grow up the price and I stick on the bitcoin, perhaps 90% of it was on bitcoin and the rest is on different altcoins, --and that is right, don't put your egg in one basket but it does not mean, altcoins are my priority.

No one can tell you the right strategy, make your own instead. We have our own strategy Even we do the same strategy here, the ways and methods will be different. Give some tests. Risk some money and observe in the long run if you are making a good following on that test strategy.

There's no specific strategy you can rely on like copying others' way during the situation you have mentioned.

There are also some people who are not believing here.
Their quote is "You don't need to diversify once you are in a good position and sized in", something like that.

Diversifying a portfolio is pretty good since this is applicable even you have a huge or small portfolio or capital.
But overall for me, the best is always "knowing or doing research first before putting your egg on a basket".

Applying those famous quotes in crypto has a different approach. That's where our fearless analysis will take place. Either of those is proven and effective in the long run. It's just a matter now when should we do it.

Why not try diversifying your portfolio for about a year and see the result for yourself. It might be a long period but that will give you a whole overview of whether that strategy is worth continuing or not. On the way, it won't need a year around to see if that strategy will be effective to you.

Yes, exactly. Only when real money is at play and you living the experience you tend to learn much faster much quicker. Everyone is in a different situation, so it is best to devise strategies that fit around your situation, your needs.

Test strategies are the best before implementing any long term methods.Take your time, work out what works for you and stress-test before going in with large amounts.

Despite the fact that we don't know when to move it to a stable coin is something that is difficult to predict. At least 50% of all portfolio balances there is always an alternative on Stable Coin. I still do it all as a form of vigilance, so that whenever the market experiences an unconscious dump, there are options that have secured our assets at a stable value.

it depends actually if you really know how to identify scam project.  Because indeed mostly scam project nowadays were copy paste in order to get more attention in the internet.  But using research you can actually obtain specific information wherein to identify new or a scam project. That why its always highly recommended to make TA when it comes investing and etc so be aware.

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not.

Diversifying is always been good if you do really have the chance because you would really be having that possible chance of recovery if one of your investment do fails.

So its up on personal choice and capability of course since not all would really be having the money.

Diversifying does not mean you make an equal percentage on coins you invested, since you understand that bitcoin dictates the entire market, then you should put a higher percentage on bitcoin for your investment.

you can do the following.

50% - Bitcoin
30% - high volume and high market cap altcoins.
20% - low volume and low market cap altcoins.

That's my personal strategy only, it does not guarantee a profit but it works for me.

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week.  That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit.  But Bitcoin for sure is the safe haven if your purpose is a long-term holding, as we can see there's good news to it that for sure it will raise after this correction right now.

If you want to diversify, better look for valuable projects with existing market applications. As we have seen, a lot of new projects can't implement their objectives. So if you want a lil bit of assurance, just venture on established alts that have long been in this market. Testing the waters in hype projects are quite risky. But if you have extra funds and your instincts is saying you can profit from it, why not? At the end of the day, you are the one managing your funds.

For crypto portfolio, you may not need to go beyond bitcoin. Some people may suggest to go with ethereum or bnb but I remember these same people were suggesting about litecoin some 3 to 5 years back but as of now litecoin investments are in negative in BTC value.

It would be a better practice for not looking into diversifying within crypto investments but you may extend your portfolio with stocks/bullion/real estate. A truly diversified portfolio must include all types of investments and not just one segment like cryptocurrencies. So, for crypto segment, choose only bitcoin and for stocks go with your countries fundamentally stronger projects. In some culture, people do treat gold and real estate investments as part of their spending like life's basic need but I recommend to do that purposefully.

Overall, diversifying portfolio after bitcoin investments may get negative growth in long run. Because, 99% of altcoins may not sustain in long run.

Any strategy that's on your mind will do. The result will now be based on how you will apply it.

The famous advice "Don't put all your eggs in one basket " or " Diversify your portfolio" won't be recommended if it's not effective.

Try to make it effective by doing a self-research and some studies.

Of course, if you want to make profits, do not just invest in those newly projects who have no guarantees to succeed. Look for those who are already on top of others because definitely they are the ones who will mostly come up successful and profitable. And if you think of diversifying your portfolio, invest a higher percentage for bitcoin and a little portion for some established altcoins. As long as you hold them for long term, then you should not be triggered easily with price corrections or any price dumps that will make the market look bearish.

The main purpose of diversification is not for us to win, its purpose is to mine more portfolios that are worth our current time and resources because with just one portfolio, our flexibility diminishes and sometimes our analytical skills cannot be practiced regularly, accompanied by inefficient exploitation is the sudden resistance and long-term strike of projects. Diversity allows us to deal with two problems at the same time, delay to resolve and other department to remain independent so as not to lose target profit but as you say, many people probably still overestimate their diversity, do not know which is mainly consumed and what is garbage

You should just make use of your common sense and just like others been on which you should really be wise on making decisions and also you shouldnt really make yourself in a hurry and we know that diversifying is always been a good idea but of course the risk is more higher but if you could able to handle that then its good to go
but if not then better stick with one investment and be sure on taking profits if you do ever make out some gains which as it should be always.

First of all you should be straight to the point with that statement – it is only coins that correlates with bitcoin to a certain high level would be doing that. If a coin has zero correlation with bitcoin, then it is not going to be moving together with it. So, it is up to you to select the coins you want to invest in carefully, and make sure that you’re selecting coins that would be worth investing, the ones that has potential to increase in the future.

You don’t just buy any coin you see in the market all in the name of diversification, that’s totally wrong and you will be making a mistake, because that puts you in the position of losing your money when the market is down.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

Yes, this is one of the wise strategies for implementing this idea.
It is actually to lower the risks.
And so far, I am also using this management by diversifying my portfolio. But what makes to pay attention is what kind of portfolio, not all altcoins are worthy to invest in. That is why we must be smarter and more careful when choosing the altcoins themselves.

At least, we can have a wider percentage of Bitcoin in our portfolio and make some targets when to sell them.
Second, we should know the right altcoins to invest also based on percentage and what kind of trading or investment it will be.
I will prefer to choose a bigger percentage on Ethereum and also BNB for longer-term investments like Bitcoin.
Then, I will put some in smaller percentage in the middle top altcoins that have good fundamentals and also some closely events that will probably rise up the price.
Third, I will also put in some altcoins for day trade in order to take profits even in small percentages.
This may not be easy, yes, of course, every strategy will always still involve risks. But at least, we can lower the risks.

I would rather agree if we put 100% of our investment was on bitcoin and just fully ignore altcoin because they are completely useless without bitcoin.
You will diversify your portfolio if you are not in crypto and stick to bitcoin investment only if you invested in stocks and real estate but don't have profit yet, I would go in bitcoin. Last month, some of my friends diversified there investment from stock to bitcoin because they realized that bitcoin has the potential to gain more profit.

Diversification really helps when you know that the price will be going down, but how you can predict them if the price is unpredictable.

You should allocate good percentage with Bitcoin since this can be your safe haven while the altcoins are not working properly, holding Bitcoin is always advisable same thing on diversification. Never go all in even on Bitcoin, that’s still risky and not a good way to invest. I do hold Bitcoin and trade altcoin as well, this is very effective for me.

As we have observed throughout the years, bitcoin has been tested by time. There will be ups and downs, but that's just part of the market. But its value has tremendously increased as compared the last 5 years or so. It is the top alt, so we can assure ourselves that this will not disappear when we are sleeping. And then to diversify your portfolio, look at top 10 alts first and evaluate which one will have the strongest applications in the market. Because with strong app, you know they can survive even with bearish market.

People don't get this strategy is still supreme than diversifying a lot. It's okay if you want to diversify but be sure that you've got bitcoin as the king of your crypto portfolio.
More than half the percentage of your total assets, that's already good. And it will depend on the likes of the crypto that you want to hold because if you diversify a lot, it's not that good too. So always weigh and balance not just your portfolio but as well as your decisions.

Diversification is a way to protect your capital in the case one of the markets in which you are invested goes down dramatically, this way even if you suffer some losses it is not something that will be impossible to recover from with the rest of the assets in which you are invested, however if your goal is to increase your capital then diversification plays against that, this means that those that have a large capital and that are already happy with it can use diversification, but those that have a small capital need to concentrate their capital instead in a limited number of assets to increase their profits.

The up or down of BTC directly depends upon purchasing and selling of BTC and on the market trends towards it.
As for diversifying this rule cannot be applied to cryptocurrency due to the lack of trust of people in other digital currencies but it all depends to you which digital currency you can trust upon. Yes, I do agree that diversifying may reduce the risk but it will also affect your potential return.

Well, it's sometimes to consider that some altcoins are more profitable than Bitcoin and this is found to be a reason why people don't give the 100% investment in Bitcoin alone but they still spare some funds on altcoins. A matter of fact is that we can see huge demand on altcoins which probably it means that more investors are investing in altcoins and diversifying their portfolios.
If we just look for long-term investment, Bitcoin is the best choice but seems it was not the best deal for now. And for me, I use to spread my funds to altcoins as well while leaving 50% on Bitcoin for more profit assurance.

It might affect the potential return at times, but it helps to secure the portfolio without much difference unlike any market condition. If there is no diversified portfolio, automatically this could directly make a big change in the portfolio value depending on the bullish and bearish trend of the market. Most of the crypto holders will have bitcoin constituting majority of the portfolio holdings. Now this has changed with the increased price and people are towards altcoins.

For me, i always find it to be more risky investing in altcoins because they tend to dump more than bitcoin. So when it comes to my portfolio, i intend to put 60% of my funds into bitcoin, 30% for established altcoins, and 10% in stocks. In this way, i won't be totally zero in my profits as i have lot of sources for my income. It's better to diversify your portfolio into multiple investments but always see to it that bitcoin would gain the biggest funds since its the most promising asset we have right now. Although its value will not be seen always on top, but i know in the end it will still settle for a price which is higher than other coins.

Diversifying on particular percentage would definitely depending on someones preference or type because not all would really be looking attractive on what bitcoin had attained or achieved neither in terms of volatility or movement.

When you are planning to go with those x100 or x1000 then you would need to deal with low cap coins and if you do like with that 50% up on a day
then it would be no brainer you would go for altcoins.

Depends on your choice because in the end of the day we do tend to accumulate bitcoin as much as we can.

I guess we all have our own choices for crypto coins when it comes to diversifying our portfolio. But our preference changes from time to time as it depends on the market sentiment. As for me, i am considering bitcoin as my utmost investment while the rest of it includes ethereum and other promising altcoins. But i know its not always bitcoin that will make me profit the most, in some instances there are also strong altcoins that can give us more profits compared to bitcoin. But as long as i have them in my portfolio regardless of the funds i intended on each of the coins, then i know i don't have to worry even if the market dumps seriously as they are good for long term investment.

Bitcoin is a must to be our main investment as bitcoin gives us a big profit from the altcoins. While the altcoin sometimes can give us a big profit, that will depend on what coins we have in our portfolio. Related to the altcoin, we need to be careful choosing the coins because not all coins can be the right coins to profit from in the future. It needs more research to find the coins and that is why we need to adjust or modify our portfolio from time to time with the current situation in the market. We can minimize the confusion of managing our portfolio.

Have plan and make an analysis for the best coins that you want to include in your portfolio. Some coins are moving differently and its normal, you dont have to worry about it as long as the coins that you chose to hold are well-established and unlikely to be delisted in exchanges. Invest a high portion to a coin that most investors trusted the most (BTC), then choose some alts that has high potential. For me, the purpose of diversifying is I have many coins to rely on that can give me profit, less risky and reliable.

Although we can't assure that everything will be fine and earn huge profit but choosing those potential coins will save you from losing.
I invested those coins that belong to the top 20 coins in the market and I believe in them that I can get something in a month or years from now.

Diversifying our portfolio is always the best practice ever. Why not if we know that these aren't profiting anymore? As we look for a better gaining opportunity in the other coins, we need not sacrifice ourselves and hold those coins who are not anymore but instead, we let them go and replace them with a new one.

Everyone should try to diversify their assets which doesn’t mean that you should end up buying hundreds of cryptocurrencies that will end up amounting to nothing. Like I do see some people who would buy more than 20 cryptocurrencies and store in their wallets, and it makes me wonder what the hell they’re really doing?

Moreover, that’s not even needed, you can just buy few cryptocurrencies and store them, as long as you are very sure that they are really good and they’re going to make the profit you need. It’s not every coin in the market that moves with bitcoin, there are still some of them that are really good and even when Bitcoin goes down they still continue to move up. So, it’s up to you to be selective and know the best cryptocurrencies to choose from,  aside Bitcoin.

You hear a lot of opinions and everyone tells you that his strategy is the right one, but in my opinion there is no always right or wrong strategy, you must change your strategy according to the market change, you must have a good management of crypto assets that suits your portfolio and your nature as well, some people like for example Quick profit and they can't wait to get bigger profits, while others prefer the long investment to get bigger profits, so each case has a different strategy.
As for not putting all your eggs in one basket, this is to reduce the risks, not only the risks of trading but also the risks of hacking or fraud.

This is true. People shouldn't just diversify for the sake of the word. One should know why one is diversifying and what cryptos one is buying. Otherwise one will end up cutting short one's winners to invest in shitty cryptos. It doesn't even need to be diversification into Bitcoin. It could be into other alts but those alts shouldn't be worthless alts. I've experienced this first hand, and I know there are many veteran members here who have tasted this bitter pill too of diversifying and then losing out big time.

When we do consider about diversification then this is such action that shouldnt really be hurried or for you to rush up because this would really result into mistakes because you would really become that desperate nor become careless on making out decisions.On times like these

then you should really take all consideration before making such step because this isnt something that you do put and then leave it the rest.

You should be wise on taking such step because this would one cost if you dont know on what you gonna do.

bottomline, each alt or coin that you want to explore with, you also need to do your own assessment and not rely on someone else. the term diversification may be simple but when it comes to actual activity, one may be confused on what coins he needs to get a hold of. the list of coin is long but from that list, you only need to select few coins to invest with. and that is the hard part, how to select from those thousand alts. better go for projects with strong presence in the market, that means, they are actively used because of their application.

If that will be the idea, we are not winning, we are absolutely losing. Selling a few shitcoins and then buying more of them back. That makes no sense at all.
Choosing coins to hold or even to trade really matters and that it reflects on our portfolio.
Diversifying means that we further look for more potential coins. As we are not satisfied with the coins that we hold this time, replacing some of them will be the best idea. It is a common practice and really it works.

Diversification has several problems, and one of those is to monitor all the assets in which you are invested, if you invest only in bitcoin as many people do then this is very easy to monitor, but if you are investing in many different altcoins then suddenly this takes a lot more time and effort as just taking a glance to the price is not enough, now you need to watch the charts and see if your investment is going well, and if it is not then now you need to readjust your portfolio and this can become incredibly time consuming really quickly.

True. Diversification is a strategy and like all strategies these have to be moulded to each individual. There is not point buying anything you see just for the sake of being spread in shit markets. Wise choosing still applies.

Some people understand the word 'diversification' by exposing themselves not only to traditional markets in stocks and shares but also in the suit of strong projects in the crypto space. This is true diversification - or at least the way I see it ;D

I think diversification goes deeper then just your holdings as well.  Income should also be diversified.  If you're investing into the crypto space for example, you likely don't want your entire investment based on buying and holding.  You might also want to purchase some miners and mine Bitcoin, as well as some GPUs mining altcoins.  You may want to advertise for services or sell your own products.  You may want to stake some altcoins or provide liquidity pairs.  You may even find yourself investing in DAOs, creating NFT collections or building projects in the metaverse.  Going outside of crypto this same thing can apply.  Most people buy stocks and bonds that pay dividends, but they could also be selling covered call options for additional income, or buy real estate and rent it out in addition to having a regular job.  There are so many ways to diversify yourself.  Do yourself a favor and do them all.

When we think of diversification, first of all you need to have larger funds so you can widespread your range of investments and not just focus on a single investment. This will definitely reduce the risk and increase your sources of income. But it does not mean that you have to put on your funds on different investments regardless of their potentials. Of course there should be a proper DYOR before deciding which way to invest. And i suggest maximize your investments in bitcoin and put a little amount on various promising altcoins that you think will prosper in the long run even if your strategy is simply buying and hodling.

Most of the altcoins follow btc path as when it's up they are green and vice versa and it is usually adviced by traders to diversify your portfolio with different coins that all your funds are not lost at once only.Suppose you invested $1000 in one altcoin only and it crashed to zero or low targets your $1000 are gone immediately with that but if you have scattered $1000 among different coins some would go up and some down you will still have something left with you.So it's advisable for having diversified portfolio to save you from major loss.

Put majority of your funds inside Bitcoin , at least 50-70% .

then diversify your remaining funds in 4 equal parts (in coins that you deeply researched and not just those shitcoin advised here .)

if Bitcoin increases then sell all of the funds, then wait for the altcoins to pump.

These perceptions only applied to those who does not Trust Bitcoin that big , because if you are then surely you will never try investing in shitcoins and will just put all your funds in bitcoin.
Yeah the price dumps at certain time , but also the value increases so high in perfect time, meaning since you are talking about Investing  then why just HOLD and only Bitcoin?
and also never try to make exemption in ranking altcoin because still Bitcoin is the best.

although altcoins follow the movement of bitcoin, they have a different percentage increase in movement, and usually the increase in altcoins is higher than bitcoin. For diversification, I think choosing bitcoin and some of the top altcoins will make our funds more secure and we will get a bigger profit as a result of the increase in altcoins. for me bnb and eth remain my favorite must-have altcoins

Good point, many times people think of diversification only in terms of their portfolio, but it is also important to diversify our income streams, many people depend exclusively on their jobs to get some money, but regardless of the amount they earn if at some point they are fired they will find themselves facing huge economic issues really quickly, however if instead we have two or more income streams if one of them dries up we have another ready to help us out soften the blow, until we can find yet another income stream to replace the one we lost.

Diversification is very good, although I think that internal diversification in crypto is something else, when we diversify in crypto we think of altcoins, and altcoins are usually a direct consequence of the movements of bitcoin and bitcoin is the boss. Currently there is the market for NFT games which has capitalized a lot of money in projects which is a similar fever to those of ICOs in 2017-2018, which is based on tokens that are relatively new, some people have capitalized money there and have done enough, but the investment and the risk is high.

Dont ever tend to listen into others because nothing beats out if you do follow on what you had made out some analysis based on your own and decide based on your knowledge and guts been telling you.

Diverisfying is best but be sure to find or seek the best ones because diversifying into several shit coins doesnt really make any difference.

Its suggested but doesnt mean its simple for you to be done.

But there is a catch in crypto trading, alt coins are strictly dependent on BTC for there price gain or loss. Even if we diversify our portfolio, if btc falls all our coins will fall in price. So there is not much gain in diversifying your crypto portfolio. These are just my few satoshis.

Wasn’t Andrew Carnegie the way to become rich is to put all your eggs in one basket and then watch that basket? If you buy an alt for pennies and sell for dollars in a bear market your lucky. You don’t need much diversification. I prefer Bitcoin and platforms Ethereum, Solana, Binance and in the next bear markets I’ll be buying more of each and exchange tokens especially FTT.

I get your point, of course, altcoins will also fall especially during the bear market, but when it comes to investment, we can invest in long term so the short term price volatility would not affect us. Once the market recovers and starts to be bullish again, altcoins will probably be benefited more as they are more profitable than bitcoin, and of course, we can verify that by looking at the top gainers this year so far and comparing it with bitcoin's total gain in percentage.

Actually there is nothing wrong if we invest only focus on Bitcoin, but if we want to make a much bigger profit, we have to be willing to take risks
by investing in altcoins as well. As you said altcoins have been proven to be able to provide much greater profits than Bitcoin. So it is very important
to diversify when we are going to invest in crypto, so when the market is bullish and makes all the coins pump, of course this will give us
a big profit. Most importantly we have to choose the right coins in our portfolio list, because not all altcoins are good for investment. My advice is
to invest 50% in Bitcoin and another 50% in some potential altcoins. So we can generate large profits when bulls occur.

And you are right about that observation, there is a very high correlation between bitcoin and the movement of altcoins, however there are more markets than the market of cryptocurrencies, you can choose other attractive assets from those markets and in this way achieve a true diversification of your portfolio, however while this could give you some protection against the volatility of the market, at the same time we need to think if this is the right time to diversify our portfolio, after all many are expecting for the bull run to continue during the next months and in that case it would be better to wait until the bull run is over before we try to invest in other markets.

this is not diversification, when the price of bitcoin drops all altcoins drop too so where is the diversification in it? people need to buy cryptptos, but investing in the real world as well and other online investing, that's diversifying. getting stuck in crypts just isn't diversification

Not all altcoins will change with the price of Bitcoin. Investment diversification can reduce risks. When the price of Bitcoin drops, you can also obtain certain benefits by investing in other altcoins and reduce risk losses.

A right strategy in crypto investment is, you do not need to diversify if you invest in bitcoins. But, you need to diversify your portfolio with all other investment types along with bitcoin. It means, in crypto space, bitcoin alone is more than enough for any investor and to minimize risks, you may look for other opportunities like stocks or real estate.

Bitcoin alone got the potential to sustain and all other altcoins do come and stay but may vanish at any time when a new "better" altcoin arrives which is the reason, you may completely ignore altcoins. You may see some altcoins may grow 2000% overnight but such things are pure gambling and here we are discussing about legit things. Still, you are ready to risk then you may allocate less than 10% of your crypto capital for altcoin investments (please note less than 10% is not in your total portfolio but only in your crypto allocation).

actually diversifying aims to control the risk of loss. but there is nothing wrong if you want to put in one basket of eggs. but the most important thing is the selection of coins that are in one egg really must be a strong coin to face the market situation.
i see if there are thousands of coins in crypto market not 100% affected on btc drop activity completely.

Diversification of portfolio is technology to get advantages from different platforms. Selection of multiple portfolio is fantastic In contrast with investment in one and only one product as its yield will be greater. I think that this is not an innovative way because so many individuals have adopted this way. It is important to get advantages by make put cash in so many stock since it is very advantageous.

No your wrong, look at the price history of bitcoin and alts from January this year bitcoin up and most alts also pump, I dont know where you get this observation btc up alts down, in a bull market when btc up alts also in uptrend look at eth, when btc pump eth also pump much higher than btc this year. Diversification is always  the best strategy in investment tried and tested it really works.   

You are right that the correlation between bitcoins and the alt coins is very high. That is why our investment into crypto currencies should be a large part into bitcoins. The diversification doesn't really work here, but it works in a broader spectrum like you diversify out of stocks, bonds and other investment funds. So bitcoin alone is already a diversification from your conventional assets. In my opinion diversification becomes important again when investing into alt coins, because when one alt coin is going to drop in price then this is not pulling down any of the other coins. Alt coins are much more risky and if we spread out our money across multiple coins the risk profile is much lower.

I would say that large part of it should be bitcoin because for me that is the only coin that I feel guaranteed to be strong and not have any problems and have the highest trust. Don't get me wrong ETH is great and all, and there are a few others, but BTC still is the coin that I trust the most.

Not because it would be the biggest earner, let's be honest in any given year there are other coins which gained a lot more than bitcoin ever did, we have seen 100x stuff in other places, bitcoin rarely ever does 100x in a single year, maybe on early times but not sure even if that happened. So, for me, we should invest into bitcoin because we trust it the most, not because it will earn us the most.

Altcoins are NOT the right option to go investing with for the reason of diversification. Because, altcoins may induce your risks against rewards as 99% of altcoins do not survive over the time. So, never try to diversify your portfolio within crypto space.

You should go for diversifying your portfolio with all types of investment opportunities which includes skills and personal-development. If you develop any innovative skills then you can easily earn and save which must be a greatest investment for entire life. If your skills working for continuous income stream then probably you may never need to worry on ROI as you can wait for any good returns.

Because as Bitcoin drops, altcoins will follow, and selling Bitcoin just for the sake of investing altcoins have no sense at all, we just lose than making a profit. We'd rather invest more than diversify our portfolio that unless if we sell altcoins for long-term Bitcoin investment, that gonna be a good decision.

If I have $10,000 as capital, I sorted it out to different potential coins but then I take a huge share of Bitcoin 60/40 sharing. We have to invest those coins that have the ROI potentials so there is no need to diversify our portfolio but rather to keep adding more to it.

Still, it's good to follow that principle, maybe, for now, bitcoin is the most dominant but we don't know what would happen in the future.

 And also, diversifying does not only minimize losses when the market is bearish but it also increases the chance to be more profitable if the market is bullish, I mean look at the bright side, when the altcoins season comes, some altcoins are way more profitable to invest than with bitcoin, so you'll end up getting more profits not putting your eggs in one basket.

Bitcoin is the main trend setter thats why altcoins would most likely be going up or on the same path but it cant really be denied that there are coins which are opposing into the movement.
Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really
vary on how you do handle up yourself on these kind of situations. Diversify while you can but be wise on taking such step.

Yes, but in the end still depends on how we looked at the situation. Sometimes I'm going all-in to a certain coin that I believe will be potential if I will keep my patience waiting for that day. Diversification is good but that's not my top task. Maybe between 2-3 coins but mostly, always going all-in.

Whatever our decision, to diversify or not, we just need to put effort into how can we manage our portfolio properly in the long run.

There is no big deal for me even bitcoin price value get dump in the market, due to as long as your not selling I cannot consider it that you as a holder is losing the assets, of course not! In fact, nowadays, this is the right time for us to buy altcoins while we are in the alts season. As you can see there are a lot of potentials coins in the market almost all of them got dumped their price where it is a good time to buy then hold in the long term.

Yeah, there are lots of factors we need to consider before diversifying our portfolio. Budget must be the first criteria but people go for arranging new fund for the reason of diversification but they should start investing from the beginning by keeping diversification in mind. But, people do buy bitcoin for $1000 and then think about diversification then going for new funds for altcoins to diversify their portfolio which may not eliminate the risk but will add up another layer of risks.

After budget, investor must take time to find real potential coins while diversifying. But, most new investors choose random coins just for the reason of not investing in one or same coin which eventually ending up in investing in shitcoins.

Unfortunately people come to know about diversification principal only after making their first investment (in most cases and I am talking about myself as well). For example, when people do hear about bitcoin then they will go for investing with it if they do get convinced by the potential of bitcoin and in mean time definitely they will not get time to go for studying the principles of investment which must be the problem you have notified.

Valid point and I agree which is the reason we are having bitcoin still around $50k levels if there would be no other major options in this crypto space then we might have bitcoin to be trading above $100k levels by this time for sure.

Very well said mate, I totally agree with you, and your last words which said to this statement made me remember one time I had invested in more than 11 different crypto coins, a bear month came and about 7 or 8 of my coins were in red while the rest remained in green, few days later, 2 out of the 11 different coins I hold mooned hard and made me alot of profit which even covered all the losses I was recording in other coins.... This experience made me agree for sure that nothing is like diversity in investment, it makes no sense to tie all your money down in just one or two coins.

Lots of factors indeed when it comes to consideration because you do need sufficient financing plus having that good research plus success wont be a guarantee no matter how good the project is but at least choosing

the project which does have potential could really give those odds of having profits at least.Diversification is always been recommended plus you could really have the chance to recover if one of your investment had

failed down on which you wont really be worrying up that much not compared if you do have only one which it would really be putting you on hard situation.

By diversifying your portfolio you can make huge gain may be you are unaware of the fact that this technique can make you more profitable you can enhance your income as well as capital. By diversifying you have to engage into various portfolio it can be beneficial for you just because there will be chance of at least one portfolio to become greater in worth and you can then surely make profit.

 Not all coins dumps there are still some coins that was left going up along with the Bitcoin the reason why you shouldn't put it all along in one basket is that if the not all coins dumps at the same time and some are still going up. It's good for your fund so it will not be easily lose a position that was just my personal opinion and I choose to diversify my portfolio rather than staying on one cryptocurrency.

Diversification is one of the ways I always do so far when investing or even trading in cryptocurrency. That I do because I only want to manage my capitals. I know that the big or small capitals will need some money management. And all in concept is not here wiser. Diversifying will lower the risks. Although all in may sometimes give very bi profits, but ti means also high risks.
So, just do your own best management of capital and also risks.

diversify only if you can keep up with each of them. because if not, you will likely lose them. so choose only projects that you can keep up with their progress and developments. because without knowledge of where they are, you can very well lose your investments.
diversifying is indeed advisable, but you should know the status of each project that you are holding. no one can take care of your business but yourself. so it is only you that can keep up with your holdings.

I’m sorry, but was it every altcoins in the market that got dumped when Bitcoin increased in value? I am very sure that there are a lot of them that increased in value as Bitcoin was increasing, so many of them like Ethereum, Polkadot,Doge coin, NEO, ripple, Cardano, and I can go ahead to mention a lot more of them. And of course there are also coins that decreased in value as Bitcoin increased, but that is not what happened to every coin in the market.

There are some of them that collaborates with Bitcoin’s price and as it increases, they also follow it to increase. And there are those that are entirely different from it and might go down if Bitcoin is increasing in value, because investors are going to dump these coins to invest in other coins that are increasing in value. Why you are told to diversify your investment is in case that one happens not to be successful, the other would be. So you just have to look for coins that are really good and invest in them.

Diversification is always important.  For me, I think owning Bitcoin is a good idea, but so is having some ETH staked at 4.5%, having some BNB staked at 20%, having some CAKE staked at 60%, owning an NFT, owning a micro cap like Namecoin, lending out MATIC at 1.5%, and providing liquidity pairs like SAND/USDT is probably a good idea too.

Those are just some ways that you can diversify not just your holdings, but also your revenue in crypto.  So many people want to trade their way to riches, but it really isn't necessary.  The crypto infrastructure has advanced to the point where there are plenty of opportunities to let your crypto work for you while you relax and watch your holdings grow.

Diversifying your portfolio is not a must, it is adviced but not a must for you to diversify especially when you are not in a position to manage or handle the financial and emotional risk involved. If you must diversify as well, do your research and make some few solid choices with projects that are promising, don't invest in too many alt coins so that you can keep proper track and not make unnecessary losses. If diversify, set durations to monitor your investment, if any seems to be going under the table with no hope, be sure to bail.

Yes, diversification of portfolio is good because it reduces risk and also provides the chance of not missing out on what some benefit other cryptos have to offer but nothing in this world that comes with a favorable condition that won't have some drawback.
The major drawback of diversification of portfolio is management and before anyone would try all that you said she need to have adequate knowledge of managing 2 or more assets.


tbh, I am one of the people that don't believe in trading your way to being riches in crypto because those days seem to have gone.

Just look on wider picture and you would able to see those opportunities because its true that people do really focuses on something only on various or few ways which they could actually make more revenue on more

other possible sources of income if they do make out some wise moves in terms of diversification even though its hard since this one really requires funds for you to invest on which we know that not all

would really be having those funds for them to diversify even if they wanted to do so but well its up to someones effort on how to deal with this kind of situation.

When we are going to diversify, we should only choose coins that have a high demand, usually the coins that are at the top of
the coinmarketcap rankings. Because it's useless if we diversify if we choose shitcoins, it will only make us lose more money. In addition
to choosing the right coins to diversify, we also don't diversify too much in choosing a lot of coins, it will only make it difficult
for us to monitor it. I think 3-5 coins is enough, and make sure Bitcoin should get a higher percentage. Because after all investing
in altcoins is indeed more risky than Bitcoin. Usually my capital will be invested 50% in Bitcoin and the remaining 50% in some altcoins.

For a maximalist, I think it isn't a necessity but with an ever-changing society with the likes of crypto, I think for most people it's a must. Always the best course of advice to DYOR especially if you're new to the game and if you just blindly invest into some shitcoins then expect to wet your pants later on if your portfolio goes down to -80% or more and if you can't handle it then good luck.

People wont learn until they do get the experience which it is a really common scenario on where everybody is heading up specially when you are just new into crypto.
You would really be seeing those kind of volatility that you havent seen before and would realize that making money or profits wont really be simple as it sounds.
Diversify while you can because things arent sure to happen if you dont put up much work and effort.

Diversify portfolio is important, but not all of them are like that, so what's the situation, if needed please diversify it, but if it's not necessary, just go ahead because making them in different coins is conditional, IMHO
Like today when the market is uncertain, I only separate my assets into two or three types, but when the market moves quickly I can split my assets into dozens of types to pursue the maximum profit.
Trading is how we spread the net according to the waves, in my opinion.

Don't always look for what it's right cause what is right might not determines the current action of the market. We should always look for what works rather. Recently, what moves the market is influence from big crypto influencers and traders because most people always look on them before pressing the buy or sell. Anything can happen in the market that's why we should follow the trend not going against it.

Nobody is telling you to leave the stock market. Even till now I am still investing in the stock market; I invest in gold and I also invest in bonds. They are all still good investments, and it is not bad when you try to diversify by buying cryptocurrency and also investing in the stock market. That’s where you would be sure of more success rates and knowing that you would be generating income from different sources.

There are times that the crypto market might not be doing quite well, but the stock market would be doing very well, depending on the stocks that you have invested in. And then As for bonds, you are certain about a particular percentage every year. Although the thing with bonds is that the profit you get is usually small.

Even myself do really consider out these options yet before this crypto market exist im already involved with stocks and forex which i did really tend to held it up and make out some active trades depending on the market condition and secure out profits if i do able to see some opportunity which people should really be minding off on doing this.Dont stick out or focus on single thing
in terms of income or resources because it would really fasten up your financial independence if you do know on how to play this one but of course this wont really be simple as it sounds
as this one requires extreme skill and experience for you to handle it out.

I agree with you, diversifying a portfolio can lead to huge profits, simply giving new and unknown projects a chance they can turn big one day, and that can be very profitable if you are in from early stages!
Also diversifying is what keeps us safe! The old one "don't keep all of your eggs in one basket" means exactly that, don't have everything in just one asset, if that turns bad what are you going to do? You will be traped, that's for sure... with diversifying you always have a backup plan, in case if one fails you can turn to another!

Either could give out profits or would really make your losses more and this would really depend or vary on how you do handle out your investment because not all diversifying condition would result
into positive ones which means risk is doubled but also rewards or profits could be doubled too which you should take up consideration whenever you do make out other investments too
and don't rush up just because you've seen someone had able to do so.

Any situation would vary because we don't make out similar decisions and takings on things here on investing.

^ Back up plan in diversifying a portfolio is a good move, because not all diversified portfolio has become profitable, sometimes you will be trapped with the thought that you are in the right move but in fact, you are in the trap. Diversifying needs to draw a conclusion before such action and decision because it will create a massive loss when you got your wrong move. I usually diversify my BTC holding into a stable coin when I saw there is a massive drop in the market price, to cut further loss, you can diversify your BTC to stablecoin.

I admit that there is a very large profit generated from investing in new projects, but the problem is it's not easy to find new projects that really give
big profits. Moreover, we have to move quickly if we want invest in new projects, usually the increase will not take long and the price will fall
immediately after rising. Therefore, if we sell late, it will take a long time to wait for the price to recover. I do not recommend investing in new projects,
if we do not have good research and analysis skills. The risk is too high if we aim to invest in new projects, and I am not a person who likes to take
too high a risk. For me, it's enough to invest safely and with low risk, by choosing an investment in top coins. I also know that some investors are
hunting for new projects that will be listed on several popular exchanges, please just do it if they are ready to face the risk.

It's what most of us are doing for a long time, moving to the stable coin when the market crash is near! I believe before making a move everyone should draw some conclusions and do their homework or else we can lose money, making a mistake in trading always leads to some loss! I wanted to point out that diversifying can be good, I am not a maximalist of any kind, so I believe that many coins have a big potential! If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!

various strategies carried out by an investor, diversification is an option to reduce the risk of drastic asset declines. but if bitcoin falls then in fact this will be followed by most other altcoins, but indeed with different percentages of decline. but if you want to take advantage of the moment to buy, then while waiting it's a good idea to put some assets on stable coins. but if we have placed the asset on the major coin, I think the bearish season will not be a problem, because we will continue to hold it until we reach the target

But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.

This is the reason, diversification within crypto space is needless; we just need only bitcoin here. We must look to diversify our overall portfolio with all other investments like gold, stocks, bond and real-estate properties. This way most assets will not rise or fall simultaneously.

It is true When Bitcoin dumps altcoins also dump, so when altcoins are down you can choose some great coins/tokens in the dip. After market recovering they will surely give profit. Recently BTC dumped to 40K, so altcoins also dump. Those who takes entry in some altcoins they have surely made profit.

When Bitcoin dumps, many shitcoins just see their last days. It is just not that worth buying anymore even if you have a lot to buy any coins and no, from my experience, I was almost zeroed out when I bought some of the alts back then. I never bothered touching the altcoin side ever again after those days.
I don't even day trade anymore.

Just because market dropped doesn't mean that people should be moving to stablecoins, in fact they should be moving into crypto and out of stablecoins if you ask me. Since the price is low right now, or at least lower than expected, this means price will go up even higher, that is why we should be buying right now.

I have diversified my portfolio long time ago, at one point it was 100% bitcoin but slowly I traded some of it and got some other coins, and I also added more money and got some other coins as well and now it is more like 30% bitcoin and the rest is others. Up until this fall I had some stablecoins as well but just like I suggested, I ended up buying some crypto with it since I see it going down.

That's what many people will tell you but before you can do that, you're going to need a lot of money to be able to spread your investments far and wide, this advice is good but the only problem is that it's going to take a long time before you're going to do it especially at the beginning where you're experiencing a lot of losses and you're more susceptible to frustration and losses because you don't have the emotional capacity yet to be strong during bear seasons.

I agree because after all having knowledge and skills is very important before starting whether it's investing or trading,
other than that before buying coins at least we need to do our own research,
and I'm sure everyone has their own way

Bitcoin is the dominator in the market. The whole cryptocurrencies and all altcoins moves are dependent on the bitcoin movement. Altcoin rally up when bitcoin moves up and almost all altcoins are down when bitcoin is down. But this does not mean that we invest only in bitcoin and forget about the altcoins.

The advantages of having both bitcoins and altcoins in your portfolio mean that you can gain the advantage of the altcoin moves but at the same time you have the best asset bitcoin with you which will make you rich gradually. The returns on bitcoin may be slow as compare to altcoins but altcoins give much more returns when they pump.

My advice will be to hold 50 to 60 percent of your portfolio in bitcoin and with the rest of your money, diversify it in the best altcoins of your choice.

Depending on the asset you choose to diversify, if the choice is shitcoins it does not reduce risk but increases risk because many choose shitcoins to get big profits in the short term.
Diversification may be good but it doesn't always work, if you've been in crypto for a long time it's bound to experience how 2018-2019 diversification doesn't help at all to reduce risk because all altcoins including btc go down and worse when btc has gone up many altcoins never even touched their lastest ATH.
So you have to be smart in choosing a coin and I think diversification is only suitable for the long term with coins that have good potential.

How can your losses be lessen when everything goes down ? but in a bear market I do not believe that everything goes down. Recently we are in a bear but some altcoins manage to stay pumped so yeah diversifying really works and helps reduced our losses and possibly gives us a profit when other coins that we picked are down.

I think that diversification works better on investing than in trading because in trading we need to focus properly and the actions can be done quickly while investing usually takes a lot of time, and movements of the coins can change. Having enough capital is also recommended when diversifying so that you can access more set of coins.

Using a diversification strategy in an investment portfolio is a good strategy, but it should be noted that this strategy certainly requires a large amount of capital, because it does not only buy one coin asset, but also buys several assets so that the capital is not only in one asset or not in one basket. Each coin certainly has a different chance. When the market is bearish as it is today, there will be several altcoins that have increased, because not all altcoins have experienced a significant decline. Good research needs to be done to implement this diversification strategy

As long you do have funds to do so then diversification would be the best but if not then there's nothing you could do to make those plans real and this is why diversification kind of act would really be varying on your

finances and we know that not all would really be having that buying power and next priority would be choosing on what project you would really be investing in and considering on how many projects in the market
today then finding the best one wouldnt really be easy and if you do really tend to purchase or buy those undervalued or low caps then this would be the toughest challenge of all.

Well, the ones with skills have a higher success rate, the ones without for sure have some good hits! I think there are some basics when you are checking some project, you do some research, you try it if you can, if there's a product or not, etc... and of course, there's a risk!
BNB is a good example, did we risk buying BNB at a $1 price and trading it at the $10-$20 range for a long time... where it's now? So they had something good already, a big exchange, something was happening, and they made nice records last year. So it's simple, find something good that you like, that you tried and it's working well, that project probably has a big potential, risk it and invest!

We do have different takings and decisions towards certain project and if you do really find out that this is something worthy to risks on then go ahead and invest but if not then try to seek another one as if there are lots of coins in the market which you could choose from and this is where you do really make your own success in the market.If you dont risks then you wouldnt know on what would
be the result so its better to have different investments on different coins as long you do have the money to invest and tend to put lots of eggs on different basket on which it could
possibly give out chances to earn more.

one can always try to diversify by checking the top alts if he doesn't know where to start. i understand that with thousand of alts, definitely, people will be confused on where to put their money. if you are worried about investing on a crappy coin, check at least the top 20 and stream down your options. also, why not start with btc. if all else fails, btc will still be here. at least your portfolio will have value no matter what.
check the developments of each project and make sure to follow their socmed in order for you to keep up with their updates.

I agree. If it seems to be challenging in choosing what coins to invest with, with the goal of diversifying one’s portfolio in a profitable manner, but one way to make it easier is to research on the top alts on different websites and perhaps check on what the existing investors has to say with specific coins or projects. And of course, it doesn’t end on putting your capital on such projects, you should also monitor its progress and keep up with the projects updates so you could also make sound judgment and decisions.

What you've said is true but it also depends on the choices and the cryptos that you have in your portfolio. If you are mostly holding and diversified into altcoins that aren't so good and usually get into pump and dump, you're more prone to losses. But a portfolio that has bitcoin and ethereum, they're likely to survive more. They're the best balancer of portfolio and based on my experience, I'm satisfied that even if the bear comes and bitcoin and ethereum go down, they're able to recover so fast.

It's true that this is a problem that sometimes arises when trading. If it is explained here, it seems like it will be too much and difficult to understand, I suggest you open a youtube channel about it. With an explanation accompanied by a video it seems it will be easier to understand. Diversifying the market is not an easy thing because it can happen suddenly following a volatile market.

Assuming you put your cash in portions of a solitary organization, there is an extremely high danger that you will lose everything, regardless of whether the organization is a decent one. Expand when the market begins to recuperate. At the point when market is in bloodbath its vastly improved to change resource for stablecoins.

That task may be flourishing this year, there may be greater improvements when contrasted with the earlier year or even month which might carry great financial conditions to that undertaking. I decide to expand my portfolio rather than remaining on one cryptographic money.

I think. that the cryptocurrency market will be sideways for a long time. Or, most likely, it will go below 20,000 for bitcoin. 17000-30000 was poorly traded. A lot of people have invested credit funds, and they will certainly lose them. The big players will empty the change wallets to zero. Diversification into all possible alternative instruments of the financial and commodity market is the most reasonable solution today.

People shouldn't just diversify for the sake of the word. One should know why one is diversifying and what cryptos one is buying. Otherwise one will end up cutting short one's winners to invest in shitty cryptos. It doesn't even need to be diversification into Bitcoin. It could be into other alts but those alts shouldn't be worthless alts. I've experienced this first hand, and I know there are many veteran members here who have tasted this bitter pill too of diversifying and then losing out big time

Losing investments is something that there would be no exclusion when it comes to real experiences and stuffs on which they would definitely be able to get passed into these events or situations

where on reality slaps into their faces no matter how good or experienced you are.Diversification is really recommended but of course you should really be sticking into those well known
and reputable coins in the market.
You could diversify as much as you can as long you do have the capital to invest on then it wouldnt really be an issue.

Investing in Bitcoin with a little fund is like crawling your way to the top. If you must hold Bitcoin, to and make good returns then you should have massive capital to fund your way up. To curb this issues there are projects that has a promising end so its more wiser to do a portfolio diversification. Now different coins are built on different smart chain network so it's good enough to do enough research and make an investment ignoring if the dip along Bitcoin if it dips also remember most of this projects will also upsurge once the price inflates

Huge capital = huge return but can be of huge losses as well if got mistaken.
Small capital = small returns but can be of small losses as well.

Thus, if you were afraid to lose more then they have to choose to invest only a small amount. In fact, the majority of the investors had to start with small capital until such time that they can afford to lose more. It possibly happens to other people, for the starters. This is not a contest and what is important is we are already equipped with knowledge and skill in trading, not just money.

Well, it is indeed and that is a perfect example.
It does need to have a huge capital in investing in bitcoin, it should always be of what you can afford and not beyond that. Because if ever you will lose your capital due to the unpredictable price, you can still be able to move on and find another investment. Remember do n to put all your egg in one basket and diversification sometimes will help but this is very crucial.

Man is by nature an extremely lazy being. People work around the clock just to eat delicious and please others. They work for a whole year for a two - week vacation . Everything is done just for the sake of arousal and getting pleasure hormones. Think about it. please. I doubt there will be any objections. Portfolio diversification is a salvation from poverty in the future. The endless search for new tools develops the brain. I apologize for making a permanent translation through Yandex translator. Thoughts are distorted very much.

Very practical. If you are not into a high-risk investment, better to start small and learn the process step by step. By doing that, you will be more familiar with how the market works and you will understand the very concept of this investment. There are ways to succeed but the sad thing more newcomers thinks that it's just an easy venture to earn a lot, this misconception needs to take away, better to engage with small capital and try to see if the pattern or system that you are using would be fit with your chosen project.

If you are fully convinced that you are ready to divert decent amount of your portfolio, your chance is better since you
start from small and you are just adding some amount that you are also willing to risk from this market.

Bitcoin is a museum piece. It won't burst. Dust particles will always be blown away from it. But. it is dead as a technology.
https://bitcointalk.org/index.php?topic=428589.msg59172813#msg59172813

I divided my portfolio in four parts
1: Long term
2: Short term
3: IDOs launchpad coins
4: spare Usdt
In long term i bought three coins and expecting nice profit in 2 years.
I choose top trending coins for short term
Some spare Usdt is also part of my portfolio,if market down i will not miss this chance

I keep asking myself the following:

- when the price of bitcoin drops a lot, the price of altcoin drops a lot because they follow the price of bitcoin. How is it possible to call it diversifying investment when someone buys bitcoin and altcoins?

diversify investment would be to buy bitcoin and altcoins, buy gold, houses, do business in the real world

Diversifying portfolio in crypto universe is only useful to take advantage of price increasements of altcoins, which can be superior in % to bitcoin price increasements sometimes. Let's say bitcoin has rised 10% in a month period, while an altcoin else has rised 30% on that same time period. So if you had your portfolio splitted among some different altcoins, including the one which rised 30% in value, you would profit more than just holding bitcoin in your wallet.

That is just a hypothetical scenario, though. It's much safer to only hold bitcoins for long term gains. Altcoins are too risky even when compared to bitcoin investment.

I did something a bit similar. I have a situation where I divided it into bitcoin, some high level altcoins (eth, ltc, so on) and the rest is in small cap altcoins (just 5-7% right now) that looks like it has very little chance but if it does then I would make a lot of profit in return. I was right with just one of them, wasn't really a good deal until that one but that one recovered all the other loss and then some.

So, I feel a bit better about it, I hope that I get a few more this year, it really does bring out a lot. I usually do not touch them, just let them grow as much as possible. One of the bad sides about swaps is that there is no stop loss there, you have to do it manually and missed out on many things that went up a lot and then crashed.

Still diversification yet you had allocated your investment on other spot even though not on different industry but still counted or considered out which it isnt a bad idea since we know that diversification is best as long

your finances permits you to do so because not all would really be having the capability on doing so thats why it still a considerable  act but you shouldnt really be that careless

on choosing which one but rather thinking up potential coins which could really give out that advantage.

Everything that means diversifying our money is something excellent, however, currently we have a market where it is concentrated on mere uncertainty, therefore in my case I have a somewhat diversified portfolio, and seeing the value in FIAT money makes me sad because one always expects to see good results and/or benefits, but one must have the conviction that the best is what happens, and as the price of BTC falls, it will also rise, such is the market, an ingredient that always makes a difference is volatility, that is why you must have a lot of patience.

Diversification is good because its less likely to suffer a  major financial blow if you know how to spread your wealth into the potential coins in the crypto market. And in fact, it will help you to generate a lot of profits from different resources, and you won't be afraid to see if one of your investments falling because you still have other investments that will provide an income for you.

Truly speaking, when it comes to diversification of portfolio in the crypto space, its really difficult as, only one commodity have been known to stand out or is almost a 100 or should I say 99% assuring and that's Bitcoin. Its no surprise that, so many persons might go all in and just hodl for a long time. The few who might care to invest in other crypto commodities out there do so basically, not gor the safety reasons that could derived from diversification of portfolio but, to seek opportunities in blindspots. Although, we could consider it a security in some way, as the gains from one side might compensate for the lose on another end.

You would really be able to handle up some losses if you do able to get various sources of income on possible several investments that you had made which is the real benefit on having that diversification but we know that not all would really be having that funds for them to do so thats why it would be on self dedication on plans on when they would tend to have this kind of behavior or action
on their investment.Some doesnt really like to take risks even more and decide to stick into one investment but honestly it would really be good on having lots of sources
even though it is more risky but tendency of recovery and patching up is high.

This is the misunderstanding of others. When it's been said that they should diversify, they're going for tons of altcoins that they shouldn't really do. It's okay to diversify whether you only have 2 or 3 altcoins to diversify with.
With that strategy they do, they're going to learn from it and will eventually have to sell the others and will lessen the number of their altcoins and won't expand that much just to make themselves diversified.

Misconception in terms of choosing assets to hold, diversifying to a much lesser numbers of assets may also lessen your stress when the market dumped down that hard, you need to pick good coins to hold while diversifying your money, one the market start favoring you your assets will bring a decent amount of benefits.

More on your understanding of assets that you will hold and how you project the future of your investment.

Diversifying your crypto portfolio is that the act of finance your cash in varied crypto comes to scale back risk if one or additional comes perform poorly. Implementing a diversification strategy additionally permits you to realize the most effective potential returns even once a number of the portfolio things perform poorly

Seriously my own believe is that the only coin that's not a shit coin is bitcoin, any other coins are shit coins but if you are into cryptocurrency I believe you should still diversify your portfolio but make sure the higher percentage of the coin in your wallet is bitcoin, then you can invest in other altcoins because you don't really have to depend on only one coin. Sometimes some coins don't really follow bitcon movements incase if any coin in your wallet those that you can easily take your profit.

Ohh yeah...then it means that ETH and BNB are shitcoins considering that only Bitcoin is legit and not shitcoins? I don't know what you are thinking mate but your wrong. We can't generalize the market as these altcoins, even many of them are worthless, junks, or whatever we call them, still we can find good projects from them. Coz if you are right, then there is no sense to invest in crypto.
If you believe that Bitcoin is the only profitable in coin in the market, that was your presumptions but the majority had think differently from you, we still trust altcoins the same thing we trust Bitcoin.

It's not enough to say that someone's diversified. But with the choices of the coins that he has, that's going to play a big factor and matter to his portfolio.
There's a deeper sense for being diversified and it's not even impressive when somebody gets to hold a bunch of dying coins and tells the others that he's diversified with his assets.

Precisely.

Diversifying your portfolio means reducing risk because your plan is for long term, not short term trading, so basically you ignore all the opportunity you might miss because let's say you put low leverage. Your return might be low but at least you're safe from big liquidation, your funds are safe, and you're making it to survive for long term.

Diversifying also means that your plan is solid, not based on news but based on the data and information you've got on your research.

Since bitcoin always dominates the crypto market, bitcoin will always be my top investment with its highest allocation. And investing into leading altcoins like ethereum, BNB, and SOL will be good alternatives to diversify my portfolio. However, you can have your own choice of coins which you think will become profitable in the future. Others are taking risk investing in meme coins, but they are only good once there is hype and investing in memes will only be profitable for short term, but if you aim for huge profits, look for the most established coins in the market as they always recover every time there is dips.

Yes its best strategy to divide portfolio. Some extra stable is compulsory in your portfolio and wait for big crash. These stable coin should only used when market totally dumped and are in full fear. This can give easy 2x - 3x ptofit when bitcoin stable for sometime.

Altcoins are dependent on bitcoin and are considered as separate coins.  It would be wise to invest in them.  If Bitcoin can be the future of altcoins based on it then it can be seen that it can be seriously harmful so here you have to keep an eye on altcoins.  And as you gain a lot of knowledge on altcoins, there may be bigger developments over the months that will bring better economic conditions to the project.  And the movement of the coming days can be seen.

Indeed, that was a good choice of coins.
Even me, I give more share into Bitcoin than altcoins and I don't invest a huge number of coins but just to choose a few of them where I can see huge market potential depending on the trend. I always check on the market chart to make an analysis and to be aware of what really happened. of course, it wasn't me to choose the same coin/s for the whole life, I'd often change it when seeing another opportunity. Sometimes it happens that I only invest in Bitcoin...lol

Yes, IMO< this advice is working enough.
We need to diversify our assets into several investment in order to minimize the risks of losing at all.
However, for me, the biggest percentage should be in Bitcoin. More than others.
And the following by the top coins that exactly will have potential in the future. We may also sometimes need a small investment for new coins if we are ready with the euphoria of the pump and dump tokens. But, this is too risky.
ANd if this is for a long term investment, I will prefer to choose Bitcoin and top coins for portofilo diversification, not the hype one

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

Diversifying is the key not to be bankrupt early. As you have no idea which asset will do good in the market, your losses will be minimized if your assets are scattered in various markets. But in doing so, you also need to be cautious which coins are worth to invest, because with thousands of alts that we have, only small percentage can survive in this market. And that means, most of them will not be valuable in the near future. You also need to be updated with their progress so you can sell off before it declines its value.

Diversifying our investment is often a good choice, as what other user's said its risky to put our eggs in just one basket. But we need to understand and make a strategy on what could be the effective thing to do in order to maximize our profit. Choosing the coins to invest aside from Bitcoin is important. Many alts are existing but not all of them are worth to invest in due to scam or shitcoins. Hence extensive research is needed to find a gem, its advisable to choose an established coins.

We need to understand the meaning of diversifying the portfolio. I know a friend of mine who bought 15 - 20 differend altcoins and when i asked him the reason, he told that he was taught of not to put all aggs in one basket. I didn't like his approach as it is difficult to manage and track all these trades at a same time.
Ideally, 4 to 7 coins are enough to trade and for investment. Buying more coins just increases the complexity and not easy to manage, especially for a new trader.

If you look at what your friends are doing it looks like it's too much to invest in 15-20 altcoins,
it is not easy to manage it all and it may not be a profit that we will get but on the contrary, namely a loss,
4-7 coins is ideal indeed or at most 10 coins

Is your friend didn't know that you know something about crypto? better if he ask for your suggestions than seeking for other people that he didn't know because someone can fool a newbie to invest in the shitcoins. Not putting eggs in one basket doesn't mean you will invest in 20 kinds of cryptos but getting two basket (coins) and divide your egg (money) on it is already understood.

It's okay if you invest more than two coins but as long as these coins are top old coins and not those new meme coins or unpopular coins in the market. Not only that it will be hard to manage but new coins can often make changes and if you cant cope up to the change your gonna lose your coin.

Most of the people prefer to use money to buy some of the beneficial coins of different project instead of buying one coin because it is something more beneficial as you know that if one coins go down then there is a chances to lose all the money which you have put into that single coin. diversification or portfolio is a good strategy to increase your profit and decrease your chances of failure.

Diversification really helps to reduce the risks, but do not forget that over time in a crypto, any coins, except Bitcoin and ETH sooner or later begin to fall in price and yield the place to others.
For example, Litecoin, Monero, Bitcoin Cash 3 or 4 years ago were in the top ten coins in crypto but now they are somewhere in the third ten.
This is not counting other less well-known coins that fell even lower. I don't think that it depends from their progress or something. It's like as in surfing.
Good coins "catch a wave" and grow greatly in price, and those who do not have time to do this disappears on the next bear market.

I am convinced that diversification is not only about investing in different activities, but also about taking into account the term of investment, which is different for different coins. Thus, if you are stuck in a coin for a long time, you can cash out other assets and invest them in a more promising option. That is why diversification must meet the criterion of investment term - for some coins it may be a year, for some - a few months, and for some - just days.

Diversification is good when you're into any crypto investment.
How do you diversify your portfolios ?,
For me I give attention and get more exposure to the projects I believe so much in,  like Bitcoin having the largest share base on percentage share 40%,15%, 10% ,5%, to the list.
then second thing I do is , if it happens that  we futunately finds ourselves in a Bull market , I use fear and greed index to reduce my exposure to Bitcoin and increase my exposure to altcoins and from altcoins to stable coins. Why I do this is most times I have been exposed to one or project and waiting for almost my whole life for the coin to rise but diversifying will give you edge over the market.

I agree on diverifying
Just look at how AXS (Axie infinity) which is just an altcoin
returned 1000% returns in just a year

https://everycoinprice.com/?symbol=AXS&interval=1year&exchange=0


Looking at this, makes me think, diversifying my portfolio and invest returns from altcoins to stack more sats

If you do able to get in on earlier on buying AXS on those early days then you had made out some big profits specially into it ATH but now im having no confidence on including it on my portfolio

but it would depend because there are rumors for for Axie Origin which might be possibly be launched on this year which it would be also a good boost up into its main token.

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As for diversification then its recommendable as long you do have the money to invest on but of course it would be more risky.

Risk is always there. If you can't deal with it better not to enter or diversify your assets, though the riskier it is, the bigger the potential that you can earn. It's always depend from how you percept and understand the market that you into. Make sure that you properly assess and analyze if what asset to invest while doing your diversification.

Else, better to keep your asset intact and wait for the pump to compensate you.

Decide when you feel that you have that opportunity to earn far better than the current that you are holding.

What can you say about the situation when the asset was bought, then its price dropped significantly, and you practically lost a large percentage of your investment? But at the same time, it's not quite so, because the asset can still grow and still give you a profit? What is the best time, in your opinion, that can be allowed for such a "stuck" and when you should still expect a rise, and when you should sell, despite the great loss?

Diversifying your portfolio effectively avoids all financial losses when the price of one of the currencies you invest in falls. Allocate funds to invest in different currencies to gain more benefits or reduce financial losses.

We have to divide our portfolio into about three or four parts. The One part is that we have to be fully Spare in which we can buy it from down market  down, while the one parts should be invested on top ten coins. 
Some Usdt for daily scalping but after proper strategy.
I think this will increase chance of profit One part is that we have to be fully prepared in which we can state if it closes, while the top ten coats in the front are to be invested in.

Easy to say but would really be hard to be applied because not all would really be having enough capital to invest on on particular parts which you had mentioned out and thats why most people do really
end up on holding or accumulating as much as they can which  they've been thinking for long term rather than on making out some short term like of trading or buying or selling decisions.
Diversification is always been recommended but due to limitation of funds then its understandable that people wouldnt able to do so.