One Reason not to be "All Inn" on any Single Investment for Long

[Yakamoto]

One of the best financial tips I ever received from my parents was that you should always have extra on hand for emergencies, and never take any opportunity as something to go all-in with. This applied to everything they did, and they managed to do well so I guess their strategy worked out for them.

I've never gone all-in on an investment and I probably never will, and chances are I'll be better off because of it.

[iamTom123]

Diversification is an old and well-tested strategy when one is into investing money or assets. There are now many assets where we can invest in and that, of course, include the digital asset we know as Bitcoin as well as hundreds of altcoins if you care. Diversify, diversify and diversify. It is all a matter how you diversify or what are the assets that should be included in your basket. It is not good to only go for Bitcoin, of course. In the end, cash will always be the king as it is the most liquid of them all.

[pinkflower]

It depends. If youre a person who doesnt have enough money to make diversifying make sense then going all in in one stock or one altcoin and hope for the best is your only ticket out and create a meaningful amount in your life.

Huh I think that people should have money and then do research and have at least 2 or 3 investments.

If you have only money to invest in one place, I suggest you do not knife it, wait until you have the money to make 2 or more investments.

If you think your investments can wait, then thats ok. But what if the train is leaving? For some situations it would be better to take the risk now than doing nothing. Life is short and much of it shouldnt be spent waiting around in order to be safe. If the risk is only money, go for it.

No one are want to get lose for his amount, I think you've kidding me dude. In order to avoid lose and they should be decided the right analyzation before but what do you mean about investment can wait?

Then you too are kidding me if you intend to make real money from a small amount and want to go slow because you are afraid to lose it. If you dont have access to enough money to wait out an investment then you are not in a position to make enough money to make it worthwhile.

[carriebee]

Investing all in on any single investment for long is a very risks thing to do. It might close in the long run and you will lose your money that you invest with. We have saying that dont put all your eggs in one basket, we cant predict what will happen in the next. So might join in other investment not just once.

[Theb]

One of the best financial tips I ever received from my parents was that you should always have extra on hand for emergencies, and never take any opportunity as something to go all-in with. This applied to everything they did, and they managed to do well so I guess their strategy worked out for them.

I've never gone all-in on an investment and I probably never will, and chances are I'll be better off because of it.

Emergency funds is not a type of Investment for your information. As in the word itself it is some kind of fund that is use for emergency purposes, also it does not grow overtime like any other investments do. Also you really don't diversify anuthing if you are allocating money from one investment and an emergency fund because you just minimize your money for the investment you have.

[Duzter]

Diversifying the funds into different investment schemes is good than risking in the name of a single investment. Reason is that when diversified, if we experience loss in one form of investment we can make modifications in the next to compensate the loss happened. This is not possible with a single investment, because lost is lost.

[pinkflower]

Diversifying the funds into different investment schemes is good than risking in the name of a single investment. Reason is that when diversified, if we experience loss in one form of investment we can make modifications in the next to compensate the loss happened. This is not possible with a single investment, because lost is lost.

But most of the people here dont have more than BTC1 to their name. How would it be a good idea to diversify the little funds you have for investing? Its like youre investing not to lose. What you should be doing is to take the higher risk/reward investment since the small funds you have is easily expendable.

[rajasumi3]

yes you are absolutely right that we should not go for all inn in a single investment.there are so much risk that we may loose all the money in  a single go,well on the other side we can say that we can say if you earn money through bitcoins,then i would say that you will never be in loss as it only about profit.

[grermezter]

I totally agree with OP about not going All In when it comes to investment, no one knows what may happen next in this world, Even with a insanely lucrative investment opportunity its never a good idea, Emergencies happens when you may need money, are you going to borrow and cover the expenses, really not advisable at all.

[severaldetails]

When you put all your money into one investment, you are completely depending on the success of that single company.
To me it makes more sense if you spread the risk. Different companies, different economy fields, maybe even different currencies.
I think it is very important that every investor has some kind of safe backup plan from the start, in case something goes not as expected.

[NS-Soul]

Investment is risky what more having a single investment and funding all your money it may broke your life if something bad happens in your investment.

[Janation]

Investment is risky what more having a single investment and funding all your money it may broke your life if something bad happens in your investment.

That is why you must not invest your money all in, and you are getting worried if something will happen to your investment? invesment will not ensure you profit, you are putting your money on risk, it will not always result a good one. And if you invest all of your money, it will be really making your life worst, you will be ending up a man without money at hand. How will you able to survive a week without money in your hands, you will be borrowing a lot when that happens.

[deisik]

When you put all your money into one investment, you are completely depending on the success of that single company.
To me it makes more sense if you spread the risk. Different companies, different economy fields, maybe even different currencies.
I think it is very important that every investor has some kind of safe backup plan from the start, in case something goes not as expected

As the saying goes, you mileage may vary

It basically comes down to how familiar you are with a certain company. For example, if you work for it (and not as a cleaner), you may know its financial status and future prospects. If these are bright, why would you want to buy anything else if you are 100% sure of its success? Let's say you work as a leading scientist for some start-up biotech company and you discovered a cure for cancer that would bring the company billions of dollars. You would most certainly put all your savings into the stocks of this company while they are still cheap as dirt. It is essentially the same with investments in general. You may have 2-3 investments, though you could be perfectly fine with them and certainly better off than someone else mindlessly and blindly dispersing his funds

[eaLiTy]

Investing all in on every investment program is a big no.Even if its a long term or short term investment all investment may lose and turn out to scam.Dont go all in on every long term or short term investment because you may up losing all your money if the investment failed or turn to scam

Investing in a scam is another thing,it happens only if you are not careful enough to understand their hollowness ,most scams have a good outer sphere but if you look carefully you can understand what their future holds and since crypto currencies does not have any regulation or jurisdiction you will see more scams here,when it comes to the term all in definitely does not imply that you have to invest all your hard cash into a particular stock and when you are not good in managing your portfolio you face these sort of issues.Being an investor mean you have to forecast everything if you are really looking to make a profit rather than investing blindly.

[onemanatatime]

Very true OP! As commonly said, never put all your eggs in one basket. Can't emphasize enough how important this is.

[BitFinnese]

Diversification is an old and well-tested strategy when one is into investing money or assets. There are now many assets where we can invest in and that, of course, include the digital asset we know as Bitcoin as well as hundreds of altcoins if you care. Diversify, diversify and diversify. It is all a matter how you diversify or what are the assets that should be included in your basket. It is not good to only go for Bitcoin, of course. In the end, cash will always be the king as it is the most liquid of them all.

To much diversification is not good too.  To tell you, the reason why it is not good to make too much diversification is the monitoring and focus.  When you have to much in hand, lots of it spill.  You cannot hold all market out there.  Just keep on  diversifying  if you feel like you can handle all of them.  If not, then better to have a few holdings that you can fully monitor and watch than lots of diversification that you cannot monitor.  It will lead to more lost than gain.

[ufaiz50]

We will not know what happens in the future so make it a habit not to All-in to invest for vigilance in case of sudden trouble. if you keep choosing All-in you must be prepared with all the risk that will come because what will happen in the future may not be what we want.

[pinkflower]

I'll ask everyone.

Take the situation of more than 70% of the unique users of this forum, how much of them do you think have more than BTC1 in their wallets? Among those who have less than BTC1 of users in this thread alone which theres a lot, they keep saying that diversifying is good. Thats ridiculous its like managing 1 dollar and hope that it will become a million.

The question. Do you think they should diversify or go invest in 1 altcoin?

[Doms]

Diversification is always a good strategy if you are after preserving your assets while at the same time spreading the risks and making your money work in different ways. By putting your assets in different risk-reward ratio of investments, that minimizes the  risk of losing everything all at once. More like playing it safe and being wise.

[deisik]

I'll ask everyone.

Take the situation of more than 70% of the unique users of this forum, how much of them do you think have more than BTC1 in their wallets? Among those who have less than BTC1 of users in this thread alone which theres a lot, they keep saying that diversifying is good. Thats ridiculous its like managing 1 dollar and hope that it will become a million.

The question. Do you think they should diversify or go invest in 1 altcoin?

I would advise everyone to stay from altcoins altogether

Unless you certainly know what you are doing since "risk comes from not knowing what you are doing". Regarding 1 bitcoin specifically, you may stay with just bitcoins and dollars (if we talk about trading, obviously), but that doesn't mean that diversification ends with moving your funds into different assets. In fact, it only starts here. You should "diversify" your bitcoin to a few reliable exchanges (2-3) since any exchange can be hacked (or scam like what Cryptsy did), and this is the systemic risk which you simply can't get rid of if you intend to trade more or less regularly