BTC Portfolio Diversification

[wallet4bitcoin]

Hi All,

I'm new to this forum, and investments in general, and have recently received excellent suggestions to get me started, but was wondering how you all diversify your portfolios? To add some context, here is the link to my first post here https://bitcointalk.org/index.php?topic=5476808.0.

I have been browsing through the investment sections on the eToro app and have been looking through the "copy traders"  to see what investors that have high percentage of returns are doing, but I don't just want to click buttons and follow blindly, but want to be able to understand not only what I'm doing and why, but, the pro's and con's of each area of investments and the advantages of diversifying with them.

The money I have left over each week ranges between 50-70% of my net income, of which I currently allocate 50/50 between the below -

• Bank Account savings at 4.75% AER/Gross variable interest (paid daily)
• Purchasing BTC using DCA approach

So far, I've looked at the below options on eToro for diversifying my portfolio -

• ETH
• Various other altcoins
• Commodities - Such as SPDR Gold
• ETFs - Such as SPDR S&P 500

Sorry if this is has been posted in the wrong section.

Its entirely up to you what you decide on but suggestively, the banks don't solve problems for people saving money in them. In other words, you can't get rich through the bankimg AER approach.

Investment involves risks and until you are psychologically set for it don't settle for it but when ready don't be scared.

If you consider the crypto space a worthy investment arena, you have to be an avid researcher as you are responsible for what you invest your money into

Loads of altcoins are really a money grab but you can still find a few to keep the ball spining.

[Bartello]

from what i saw in the thread you have £300 - £400 left over each week from your salary right? if you ask me, i'll probably stick it all to bitcoin and have no intention of diversifying. £300 is not a lot of money, but it's not too little either, so when you buy it all in bitcoin i think you can make a decent profit before the halving.

i'm not saying that the dca or diversification method is not good, it's good to invest regularly with this method, but opportunities like now don't come twice, so when the opportunity arises, take advantage of it to buy as much as possible, and be sure that you can make big profits from this investment.

Thanks for replying.

Yes, most week's I have between those amounts depending on how many hours I do, and I have budgeted my finances, so I don't go without and live fairly comfortably, but do remain disciplined by making cut backs - not because I want to pump as much money into BTC as possible, but to ensure my future is as comfortable as possible.

My plan is to put any spare money I have between paydays into BTC however, and will also increase the amounts I invest in to BTC on a weekly basis when my life costs dictate I can. I like to have balance in my life, but at the same time I don't want to sit and go hungry because my money went to BTC as I want to be very disciplined and not touch my portfolio in the short - mid term. 

[WeThePe0ple]

You have a good investment plan here but it will be better if the total money spent on gold and silver is not as much as that you spent totally on bitcoin. I have more confident in bitcoin investment than I have in gold and silver.

I get your point. I am tempted to go bigger on bitcoin because bitcoin has a potential to go 100x or more.
However, for bitcoin there are 3 things bothering me:

1) It's either going to millions of euros, or to 0. I think it's 50-50 between the 2.
2) There may be a better moment to purchase it than there is now at 40k. I believe we have not seen the attack of the government on bitcoin yet. I believe there will be organised sell pressure (high taxes for owners, the legal obligation to declare bitcoin holdings, prison sentences for BTC holders..) and this may lead to better buying moments.
3) I can make a mistake with the wallet.

At the moment I am keeping my portfolio at just 15% on BTC because of the second reason. I believe there will be a better moment to buy because we are in front of a global recession worse than 2008. Also if I spread my purchases in time, it's less likely that banks will report me to the tax office.

Just my 2 cents

[Sim_card]

Diversifying into another investment doesn't mean that you should buy bitcoin and other altcoins. You are getting it wrong because they are all cryptocurrency and bitcoin is the original and has great potential. If you have bought bitcoin, then you are on the best investment and leave shitcoin because the price movement of bitcoin controls the altcoins price. To diversify means that you should put in your money into other investment like stock, bond, real estates, properties and gold. I will advice you to sell all those shitcoins because they are shitty and will make your regret that you invested in them. Will I even call them investment, no they are not but they are gamble.

[Jawhead999]

Almost all altcoins price follows Bitcoin price, whenever Bitcoin price increase, it's also same in altcoins. Since the purpose of diversification to make sure you will not lose all of your wealth at once, what's the point of altcoins here? You may think buying few coins will make you safer, but the reality you're increase the volatility in your portfolio.

[Don Pedro Dinero]

Almost all altcoins price follows Bitcoin price, whenever Bitcoin price increase, it's also same in altcoins. Since the purpose of diversification to make sure you will not lose all of your wealth at once, what's the point of altcoins here? You may think buying few coins will make you safer, but the reality you're increase the volatility in your portfolio.

That's why I don't own altcoins, but when people buy altcoins they are looking for the next one that makes x100 or x1,000, whether the global altcoin market follows the price of bitcoin or not.

I don't like to give investment advice, I prefer to say what I do and that is that I am diversified outside the crypto market, mainly in a fund indexed to the S&P 500. It will probably be less profitable in the long run than putting it all in bitcoin but I prefer to diversify for safety's sake even at the cost of profitability.

[Bananington]

Diversifying into another investment doesn't mean that you should buy bitcoin and other altcoins. You are getting it wrong because they are all cryptocurrency and bitcoin is the original and has great potential. If you have bought bitcoin, then you are on the best investment and leave shitcoin because the price movement of bitcoin controls the altcoins price. To diversify means that you should put in your money into other investment like stock, bond, real estates, properties and gold. I will advice you to sell all those shitcoins because they are shitty and will make your regret that you invested in them. Will I even call them investment, no they are not but they are gamble.

Unless it is for straight on trading purpose, diversifying ones investment portfolio may throw one off balance and as such may cause a cataclysmic loss to every portfolio in a season.

BTC sure controls the prices of other shitcoins, hence why it is advised to first DCA as long as possible, recover the capital and reinvest into any other coin doing well at the time. Remember however that any investment in other shitcoins will be tested over time, and if BTC fails in this duration, then what's the hope for the shitcoins invested in?