What Is the Best Way To Diversify 100K in Crypto?

[CryptoManiacHen]

Hi Forum,

I've been in crypto on and off for a few years. I bought Bitcoin originally before the Mt. Gox hack and panicked after the hack and got out entirely.

I revisited the space last year and got into Ethereum and enjoyed the wave that brought the price to the $50s.  I used those profits as the basis for my trading, which I wasn't that good at, though I learned A LOT.  Ultimately, trading was unprofitable so I quit.

Over time, I saved and sold things to come to a point where I have 100K to invest.  I'm in a lot of the big cap/high volume stuff like BTC, ETH, XRP, ETC.  But I'm also diversified among projects that are still under $1 but have a lot of potential (RLC, GNT, TRST, WAVES, etc).

I'm also taking part in some of the ICOs, which are enjoying a sort of mania at the moment, for better or worse.

Where I'm kind of stuck is I'm looking to devote part of my portfolio to a diverse set of tokens that are currently low in price and could potentially take off.  I saw how PIVX and GAME have some insane all time returns since they debuted on the exchanges at like eight zeros to the right of the decimal point. Something like that even going to 0.1 is an insane return if you got in early.

Do you guys see any coins out there that have enough volume, on reputable exchanges, and could potentially do well?

Pinkcoin is annoying AF and I'm not even sure if it's legit or not.  EMC2 has done well but I don't really see it even getting to $1, especially when you consider how Stratis, a serious project, is still not there.

I'd appreciate any suggestions or insights from those in this space that have this kind of experience.

Thanks,

CryptoManiac

[Sled]

The answer is do research! We can see a lot of coins right now in the market that is pumping hard like bitcoin and they are continuously rising even the bitcoin is high right now. If you do research and analysis (on the chart) very well then it will be easy for you to determine what is the best coin to buy. If i were you will invest 60% bitcoin 10% litecoin and 30% ethereum.

[CryptoManiacHen]

Very true.  That's what I've been doing. I guess I meant to ask what strategies are other members using when designing their portfolios.  The research is a constant WIP.  Fibonnaci retracments, technical indicators, use cases/white papers, dev teams, market cap and volume, exchanges, etc etc.  There's definitely a lot going on!  Thanks.

[pooya87]

how much do you think all the analysis like technical analysis and research helped you in your altcoin trading? i ask that because i am no expert but for the life of me i can not see any kind of analysis work on 99% of the altcoins and that 1% only works sometimes. they are all moving based on pump and dump.

[amacar2]

If you will ask other forum members they will just suggest you some random coin that they are holding so i suggest you to make your own research before following any suggestion you may get from other members.

I like the way you have diversified your holdings among coins with good trading volume that is the best practice. You can have a look at KMD and GBYTE, i have seen good potential in them.

But like i have said above do your own research for this two cryptos.

[ubercool]

how much do you think all the analysis like technical analysis and research helped you in your altcoin trading? i ask that because i am no expert but for the life of me i can not see any kind of analysis work on 99% of the altcoins and that 1% only works sometimes. they are all moving based on pump and dump.

Precisely. Most of the coins are running by and from pumpers money and they are making a huge profit with these tricks. Analyzing cryptocurrencies in the early stages is impossible and no one will know how it is created or for what purpose. It is best to keep your money in BTC rather than going for altcoins.

[Sled]

how much do you think all the analysis like technical analysis and research helped you in your altcoin trading? i ask that because i am no expert but for the life of me i can not see any kind of analysis work on 99% of the altcoins and that 1% only works sometimes. they are all moving based on pump and dump.

Precisely. Most of the coins are running by and from pumpers money and they are making a huge profit with these tricks. Analyzing cryptocurrencies in the early stages is impossible and no one will know how it is created or for what purpose. It is best to keep your money in BTC rather than going for altcoins.

If you know how to analyze a coin and read charts to determine if an altcoin is good for investing or not then altcoin trading is what you are waiting for a profitable one. Most of the altcoins now are getting dumped because of the price surge of bitcoin and that is one of the best moment to diversify 100k into different cryptocurrencies because it will give you profit. Do not invest your money in just one crypto because it will make you cry later.

[magneto]

What I would suggest is:

- 50% bitcoin, in cold storage wallet. Make sure that the wallet is 100% secure, the last thing you want to happen is your wallet getting hacked or destroyed by an natural phonemenon and you losing 50k USD wotrh of coins.

- 20% Ethereum, again, put it in a safe cold storage.

- 20% Monero, good hedge against government intervention on cryptocurrencies. Balances are private, so nobody can ever tell whether you have monero or not.

- 10% Lisk, basically a javascript version of Ethereum, i baghold a bit.

[Spirit2016]

how much do you think all the analysis like technical analysis and research helped you in your altcoin trading? i ask that because i am no expert but for the life of me i can not see any kind of analysis work on 99% of the altcoins and that 1% only works sometimes. they are all moving based on pump and dump.

Precisely. Most of the coins are running by and from pumpers money and they are making a huge profit with these tricks. Analyzing cryptocurrencies in the early stages is impossible and no one will know how it is created or for what purpose. It is best to keep your money in BTC rather than going for altcoins.

If you know how to analyze a coin and read charts to determine if an altcoin is good for investing or not then altcoin trading is what you are waiting for a profitable one. Most of the altcoins now are getting dumped because of the price surge of bitcoin and that is one of the best moment to diversify 100k into different cryptocurrencies because it will give you profit. Do not invest your money in just one crypto because it will make you cry later.

But why then generally keep money in the Crypto currency? If in your opinion you still have to cry from such actions, It is better to earn real money with Bitcoin and to put them in more valuable things.

[thebatletbet]

trst (trust coin is good coin) you can inday trade because trustcoin price always fluctuative
if long investment can get much profit waves coin is good, because much developer and investor like too waves token, but still under ethereum token smart contract,

[romero121]

trst (trust coin is good coin) you can inday trade because trustcoin price always fluctuative
if long investment can get much profit waves coin is good, because much developer and investor like too waves token, but still under ethereum token smart contract,

Those coins quoted seems potential though they function under the ethereum smart contract. Most of the altcoins depends on ethereum based smart contracts. Go through different exchange websites and find the list of coins. At the same note few coins fluctuations. Continue the same process for few days. Now you know using which coin you can make profit in a short and long.

[Sled]

how much do you think all the analysis like technical analysis and research helped you in your altcoin trading? i ask that because i am no expert but for the life of me i can not see any kind of analysis work on 99% of the altcoins and that 1% only works sometimes. they are all moving based on pump and dump.

Precisely. Most of the coins are running by and from pumpers money and they are making a huge profit with these tricks. Analyzing cryptocurrencies in the early stages is impossible and no one will know how it is created or for what purpose. It is best to keep your money in BTC rather than going for altcoins.

If you know how to analyze a coin and read charts to determine if an altcoin is good for investing or not then altcoin trading is what you are waiting for a profitable one. Most of the altcoins now are getting dumped because of the price surge of bitcoin and that is one of the best moment to diversify 100k into different cryptocurrencies because it will give you profit. Do not invest your money in just one crypto because it will make you cry later.

But why then generally keep money in the Crypto currency? If in your opinion you still have to cry from such actions, It is better to earn real money with Bitcoin and to put them in more valuable things.

If you think well, you can realize that it is faster to earn in diversifying capital in different currency rather than in bitcoin only, Example is when you bought bitcoin around $1,300 per 1 bitcoin and you bought a lot of litecoin around $15 then you can see that the price of those two coins are already pumped so you don't earn with just one cryptocurrency but from two currency and how much more if you diversify it will from different cryptocurrencies?

[CryptoManiacHen]

Very interesting responses.

My goal is a 10x return or better across the entire portfolio.  That will get me to a cool $1 million, which is my "drop out" target.

As for the question about technical analysis, there's a lot you can do with reading technical indicators, fibonacci retracements, etc for deciding an ideal time to buy (if you are looking at long term) and when to take profits.  But trading for me was ultimately unprofitable.

Either way, it's a huge time investment to decide how to create your portfolio. I join slacks and telegram chat groups to get a sense of what's going on with different projects.  Still, there's no telling what a given token will be pricewise.

I'm attending the Token Summit in NYC this month. I hope to meet some informed people and come back with better judgement about how to move forward in this space.

My favorite token so far has been RLC.  It's been on a non-stop roll since its ICO, which was epic.  It's almost catching up to Stratis despite only having come out in the past few weeks.  Pretty impressive.


The thing for me is though Bitcoin, Ethereum, etc can go up in price, I see more room for growth with the tokens that are under $1.  It's a massive ROI when a token goes from pennies on the dollar to even $1 or a few dollars.  Once I reach my dropout goal, I'll then "park" a substantial amount of funds in Bitcoin, Ethereum, Monero etc.  But given I want to grow the portfolio aggressively, the smaller tokens are a better play for me for the time being.

Thanks again.

[KuromaYoichi]

You can consider adding Nexus to your portofolio, it's trading in bittrex right now and has a lot of potential. Their slack is active and there's a lot of development happen. But as a lot of people said, do you own research, so you should do additional analysisv before you decided to jump in.

[bikbik2]

You can consider adding Nexus to your portofolio, it's trading in bittrex right now and has a lot of potential. Their slack is active and there's a lot of development happen. But as a lot of people said, do you own research, so you should do additional analysisv before you decided to jump in.

For a beginner, even the advice from the outside is very important, because own analysis practically does not give anything. What is better to do in order to be sure of the correct approach in this business?

[jasramos]

For those who want to learn on how to diversify their Crypto portfolio but having a hard a time or finding the process complicated, Here's an article which helped me set up my diversified portfolio.


https://medium.com/faast/why-diversification-is-so-important-with-cryptocurrency-2ea870ceedb8

[jasramos]

For those who want to learn on how to diversify their Crypto portfolio but having a hard a time or finding the process complicated, Here's an article which helped me set up my diversified portfolio.


https://medium.com/faast/why-diversification-is-so-important-with-cryptocurrency-2ea870ceedb8

[mk4]

how much do you think all the analysis like technical analysis and research helped you in your altcoin trading? i ask that because i am no expert but for the life of me i can not see any kind of analysis work on 99% of the altcoins and that 1% only works sometimes. they are all moving based on pump and dump.

Not a daytrader per se, but I kinda get the concept of technical analysis.

First off, not all altcoins are moved by pumps and dumps; but some are just manipulated by whales. On to the TA topic: Making decisions through TA doesn't guarantee you accurate predictions. Doing TA on certain coins/tokens just increases your odds of winning the sort of "gamble" that is trading. Increasing your odds from 50% chance of winning a trade to 60% is a significant difference.

To the people who understands TA better: Correct me if I'm wrong.

[AleksandrSMI]

My portfolio looks like this: 70% bitcoin, 20% etherium and 10% altcoyin, advise a specific coin is difficult, guided by my own analysis.

[mk4]

Spreading it over 100 coins will be advisable.

Definitely not. 100 coins is too spread out. There's going to be a significant chance of you getting in on scamcoins and shitcoins on those 100. 20 coins/tokens is definitely enough in my opinion. Though it ends up depending on which specific coins/tokens you actually invest on.