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

[SHAWN-MIDWAYS]

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

And its good advice we all need to take to avoid losing our investment by putting everything in one basket. Diversification has been also been  prove to be the best way to protect and grow our investments.

[1714058977]

1714058977

[CyberKuro]

...

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's why medical assurance is a way to diversify investment so it can't ruin other savings whether in gold or bitcoin.
Cash savings is the most needed to prevent losing from other investments as well.
So yes, we need many asset and commodity as much as we could as backup plan just in case something happen.

[Weatherby]

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.

It is good to carry the band wagon of diversification in the crypto currency world but before doing that you have to understand everything about the team and have to follow all their updates,you really do not want to have a very long list of diverse coins instead select a couple of good coins and follow their development team and you will get an idea when the price will move.

[aTriz]

I have talked with many people that has started their investment journeys just too early, they were not prepared and educated well enough.
That has later caused to lose most if not all of their funds because of one simple reason.
They did not secured themselves by using only the part of their funds to get into some particular project, or investment.

This is the golden rule of whole investing mantra, that you should never risk everything on one asset, because it is not worth it considering the risk.

[Sled]

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.

It is good to carry the band wagon of diversification in the crypto currency world but before doing that you have to understand everything about the team and have to follow all their updates,you really do not want to have a very long list of diverse coins instead select a couple of good coins and follow their development team and you will get an idea when the price will move.

Yeah, before you follow the hype or band wagon you need to make sure that you are following the right hype or path because sometimes those people that are starting to hype is just want to sell their bags to you so you will be the another bag holder, to avoid that it is necessary for you to do research first about the team and if their coin is worth it for long term and not only for short term.

[deisik]

I have talked with many people that has started their investment journeys just too early, they were not prepared and educated well enough.
That has later caused to lose most if not all of their funds because of one simple reason.
They did not secured themselves by using only the part of their funds to get into some particular project, or investment.

This is the golden rule of whole investing mantra, that you should never risk everything on one asset, because it is not worth it considering the risk

I agree with your attitude

In fact, I had fallen victim to this error myself in the past, though I was wise enough to call it a day just in time. But it is not so much about investing all as such as about staying away from investing more when you start losing. In other words, people are not complete idiots to invest all at once generally, but they are still fools enough to continue investing into a losing bargain when they actually have to withdraw their investments as soon as possible while there is still something to withdraw and their losses haven't yet turned catastrophic

[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.

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.

Going all in in one good investment is different from investing blindly. Ask all of the posters here who said that diversifying is good what altcoins are good for them. Im sure a good number of them will have scamcoins in their list of investments.

What now is the good in diversifying, if you diversified them on scamcoins?

[talkbitcoin]

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.

Going all in in one good investment is different from investing blindly. Ask all of the posters here who said that diversifying is good what altcoins are good for them. Im sure a good number of them will have scamcoins in their list of investments.

What now is the good in diversifying, if you diversified them on scamcoins?

i don't know about others but if i ever talk about diversifying, then i am talking about diversifying your "money" and that means for example investing in bitcoin and gold and some other stuff like real estate, stocks ,...

and besides the notion of "scam"coin is a bit weird to me! mostly because people have very different definitions of the word. to me all the altcoins are the same. they are there to be pump and dumped and if we are skilled enough, we can make profit from this scheme. but it is not an investment.

[gentlemand]

I don't buy this.

I have a stock market fund that basically sits there and does fuck all while others are furiously buying and selling and throwing customer money away. It has doubled in less than four years with lower fees than others and has beaten almost all of the frenzied funds. I won't be doing anything with it for a long time to come.

Similarly with crypto these days if you wait around long enough you'll get another pump. I think the whole thing is about enter a next level of hugeness so there's no way I'd be chopping and changing. I'll be sitting back and reaping the benefits. I'll qualify that by saying I'd only do it with an alt that I truly believed had a serious future of which there are only a handful. All the other ones are fair game and I'll juggle them with impunity. 

[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.

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.

Going all in in one good investment is different from investing blindly. Ask all of the posters here who said that diversifying is good what altcoins are good for them. Im sure a good number of them will have scamcoins in their list of investments.

What now is the good in diversifying, if you diversified them on scamcoins?

i don't know about others but if i ever talk about diversifying, then i am talking about diversifying your "money" and that means for example investing in bitcoin and gold and some other stuff like real estate, stocks ,...

and besides the notion of "scam"coin is a bit weird to me! mostly because people have very different definitions of the word. to me all the altcoins are the same. they are there to be pump and dumped and if we are skilled enough, we can make profit from this scheme. but it is not an investment.

You should know what Im talking about because most of the posters here are members of a signature campaign. Like most signature campaigners we dont have enough "money" to invest, much less to diversify. All we have is our small campaign earnings to invest in what? Altcoins.

If your notion of an altcoin is they are there to be pumped and dumped then what does that tell you?