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

[Oilacris]

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.

As a wise person you will surely think up on this thing first since you do know already the risk involved on any investment and diversification would really lessen the risk because its been partitioned already which means if one of them fails then recovery wont be too hard compared on putting up on one investment.

[1714880346]

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[shadelockme]

Putting all our money for just one investment will make our future bleak, many economists advise us to invest in some sort of choice

[Kevin77]

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.

As a wise person you will surely think up on this thing first since you do know already the risk involved on any investment and diversification would really lessen the risk because its been partitioned already which means if one of them fails then recovery wont be too hard compared on putting up on one investment.

Other than recovery, the performances of various investments will be always different hence to make sure that we are not missing out any rapid paying investment opportunity,we must look for more number of opportunities rather than sticking with one as no one could foresee future so that pick the only high performing investment opportunity.

[OROBTC]

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

Yeah, I would go along with that, unless you really know what you're doing, stay away from alts.

deisik, I would mildly disagree with one of your points in an above post.  Even if you are at a fairly high-level at a company that you might work for, they can still perpetrate fraud with very few knowing.  Example: Enron.  Diversification can be done, actually advisable because of this "single company risk", which still exists even if you think you "know" the company well.

[Dmitry.Vastov]

I've done this once and not a very clever move to do. Investing your money in only one crypto could lead to loss once it crashed. You should spread your investment. Not only on one but more crypto. Atleast it will cover your losses once one of your alt crashes. It also the depends on the alt you choose. Make sure you choose a good alt. Me i bought XRP, ETH and Dash. So far, it gives me good profit.

[hase0278]

I've done this once and not a very clever move to do. Investing your money in only one crypto could lead to loss once it crashed. You should spread your investment. Not only on one but more crypto. Atleast it will cover your losses once one of your alt crashes. It also the depends on the alt you choose. Make sure you choose a good alt. Me i bought XRP, ETH and Dash. So far, it gives me good profit.

You should really read the OP more since this thread does not tell that going all in on a single investment is good but rather it states a reason, one good reason to why one should not go all in and having some cash left to spend for our lives while waiting for our investment to profit is a wise choice. I hope I don't offend you buy the way you replied I think you didn't read the OP well.

[KuromaYoichi]

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

[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?

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

He other way to do it is to keep all your BTC in cold storage and away from the risk of being stolen if you decide to go all in on BTC. Some altcoins are ok only if you are aware that they dont hold any real utility. If someone is still holding ETH bought from the ICO he would he rich by now.

[shinratensei_]

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.

As a wise person you will surely think up on this thing first since you do know already the risk involved on any investment and diversification would really lessen the risk because its been partitioned already which means if one of them fails then recovery wont be too hard compared on putting up on one investment.

Other than recovery, the performances of various investments will be always different hence to make sure that we are not missing out any rapid paying investment opportunity,we must look for more number of opportunities rather than sticking with one as no one could foresee future so that pick the only high performing investment opportunity.

It should be considered as another recover, I mean if another investment gets a loss and other can be covered the loss caused by his profits. Don't put all of the things in a basket.
I was considering that as a play on the safe zone.
The market is unpredictable. So, we need backup by another side.

[Supercrypt]

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.

That is the thing, most people see other get successful from a certain way like investing or trading and want to copy them and they jump in trying to get profit without any kind of knowledge and that leads them to losing all their money to scam when they are losing it for the lack of experience, and like said since cryptocurrency have no regulation we cannot really distinguish scams from not.

[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

Yeah, I would go along with that, unless you really know what you're doing, stay away from alts.

deisik, I would mildly disagree with one of your points in an above post.  Even if you are at a fairly high-level at a company that you might work for, they can still perpetrate fraud with very few knowing.  Example: Enron.  Diversification can be done, actually advisable because of this "single company risk", which still exists even if you think you "know" the company well

I don't know much about Enron

Apart from the part that they doctored their financial reports and accounting. But if you don't work in some backward office at the other side of the world, such things (as rumors) quickly spread between company employees. Indeed, a typical clerk may not be the first to liquidate his portfolio, but he will certainly not be the last. In other words, we don't know anything for certain in this regard. In this case, we can only ask the former staff how it actually felt before the shit hit the fan

[lionheart78]

I've done this once and not a very clever move to do. Investing your money in only one crypto could lead to loss once it crashed. You should spread your investment. Not only on one but more crypto. Atleast it will cover your losses once one of your alt crashes. It also the depends on the alt you choose. Make sure you choose a good alt. Me i bought XRP, ETH and Dash. So far, it gives me good profit.

You should really read the OP more since this thread does not tell that going all in on a single investment is good but rather it states a reason, one good reason to why one should not go all in and having some cash left to spend for our lives while waiting for our investment to profit is a wise choice. I hope I don't offend you buy the way you replied I think you didn't read the OP well.

It is a no brainer to not touch our money for our daily needs, infact if you invest, you make sure that it is a "free" money.  Either from accumulated savings or loaned money for that purpose.  You will never touch the money that is allocated to your daily, monthly and recreational budget.  If you do that you will really get into trouble financially.

[Silberman]

...

I have long written that diversification is a very smart idea.  No one can predict the future, etc.  But discussed below is another reason not be 100% in ANY investment, at least for long.  I ran into this argument at a gold blog.

Imagine that you are 100% invested, "All Inn", in gold.  Even if the price of gold were to go way up, there is still a big risk that many don't see.  Namely what happens if there is a big price drop JUST when the owner might NEED to sell (eg, an unexpected emergency).  If our imaginary friend bought in at $1275 gold (approx. price today), and then price drops to $900 (Martin Armstrong predicts a sharp price drop like this, prior to a big price rise, a "slingshot" price rise after its initial drop).

And then, just at a bad time for the gold owner, he might need money (US dollars) to cover an unexpected $200,000 medical bill.  And he if forced to sell his gold at a 25% loss to cover his bills...  Ouch!  It would hurt even more should gold then go to $2500 per ounce.

So, it is unwise to be All Inn on gold, even if we were to be very sure that $2500 gold is coming.

The above scenario would hold for Bitcoin as well, or anything else to be held long-term.

Some of us gold owners have a saying: "Protect the precious."  That means keep some powder dry (CA$H on hand) for the unexpected.

That is why our money needs to be separated in different categories that way you can have a medical fund to cover some of your expenses if the need arises also that money serves as a buffer even if you need to sell something valuable to you you can take your time and take the best price on the market.

[pinkflower]

But what if theres an altcoin good enough to go all in on? LTC was looking good to go all in on weeks ago only if you have an amount thats easily replaceable depending on your financial status. If youre a young student making BTC by joining signature campaigns then around BTC0.3 is good enough for you because you can replace it with your signature campaign.

If you invested in LTC weeks ago you might have doubled or tripled it already and more.

[Oilacris]

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.

As a wise person you will surely think up on this thing first since you do know already the risk involved on any investment and diversification would really lessen the risk because its been partitioned already which means if one of them fails then recovery wont be too hard compared on putting up on one investment.

Other than recovery, the performances of various investments will be always different hence to make sure that we are not missing out any rapid paying investment opportunity,we must look for more number of opportunities rather than sticking with one as no one could foresee future so that pick the only high performing investment opportunity.

It should be considered as another recover, I mean if another investment gets a loss and other can be covered the loss caused by his profits. Don't put all of the things in a basket.
I was considering that as a play on the safe zone.
The market is unpredictable. So, we need backup by another side.

Having back-up on anything specially on investments is really advisable and yes market is really unpredictable which means it can crash anytime which causes for us to lose money and as you said the earning or profits of other investments will patch up the lose which means you are not totally broke and can recover not like on a single shut down of investment where did you put all your money they it maybe the last investment you would make because you will be afraid to to it again.

[lienfaye]

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

[pinkflower]

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Yeah but most of the forum members who are posting in this thread don have more than BTC1 in their wallets so its better to go all in with one investment. After LTC check the price of ETC. Its now at over BTC.0030. A few weeks ago it was only BTC.001.

[NS-Soul]

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Yeah but most of the forum members who are posting in this thread don have more than BTC1 in their wallets so its better to go all in with one investment. After LTC check the price of ETC. Its now at over BTC.0030. A few weeks ago it was only BTC.001.

That is more suicide move in investment you have no 1btc and then you will go all in .So if you are being scam you will have nothing .a good investor will dont do that move.

[OrangeII]

It is indeed very risky, to put all the money you have for an investment.
It may be very much a profit that you get if it really works, but no one will guarantee if the investment spot turned into a scam. It might make a big loss, rather than make a profit.

[buwaytress]

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

I tend to think of my longer-term savings as investments these days and perhaps I am also beginning to accept that my crypto experiment is a small, small basket of diversification. Some very real life lessons (the sudden 40% loss of value to my local currency, for example) keep repeating themselves to me. Even if you don't "invest" with any attitude to profit, even savings should be diversified into several currencies.