Diversifying?

[NUFCrichard]

I bought my bitcoin a few years ago now. I was and am a believer, but the massive price increase has me worried that I am now overly invested in bitcoin.

It looks like I have 75% of my money in Bitcoin. Obviously it wasn't always like that, and it with the price rising so much recently, I find myself with a fair amount of money available for the first time in my life!
I know that Bitcointalk probably isn't the best place to ask this, but would you recommend diversifying and if so, in to what?

I was very happy when the price was $1000, but now it feels like I have enough that I could buy a flat or something. It used to be a speculative thing for me, I had invested what I could afford to lose, but now the price has risen so much that it could be easy come easy go, and the price falls back down to where it was last year

Diversifying for the sake of diversifying is meaningless

You should know the asset which you are going to put your money in. The only asset which is and will always be there and which you don't need to know any gory details of is gold. I refer to physical gold as gold bars and gold coins. So if you can't resist the urge, gold is a sure bet. It won't give you decent profits, and, in fact, it will likely give you no profits at all (at least, short to mid term), but you will never have to feel the pain of your wealth losing value

I am with you here and do own some precious metals. I have collected silver slowly over the last few years (starting at $17, so no big losses), mainly bullion, but some junk silver too.
I always thought it would be great to own some gold, and I have a few ounces now, which I am happy about.

I wouldn't be scared holding lots of PMs, except for possibly missing out if Bitcoin does go to $10k or even more.

Another option would be to keep an eye on the price of Bitcoin and sell when the price is dropping significantly and rebuying when the price goes up again.
That way you're taking advantage from those price drops.

I'm don't mean that you should become a day trader, only sell & rebuy when you notice big price movements.
You can also follow a few people who do chart analysis and compare their results to get a somewhat correct view of the charts.

I know this is fairly risky, but as with anything: no risk, no gains.

If I knew when the price was going to fall or rise, then I would happily trade like that!

I live in Germany and have held my bitcoin for longer than 1 year, meaning that profits are now tax free.
If I sell and rebuy, I would have to wait 1 year before being able to sell tax free again.  I want to stay away from the tax man as much as possible!

[1714033422]

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[Bagaji]

Diversification I believe is the best thing to do when it come to the issue of investment. Thank God you have made a lot of money from the growth in the market value of Bitcoin. I believe there are legitimate business opportunity in your area which you can invest your money since I don't have an idea of the country you leave to enable give you a concrete answer. Although investment in some projects at their ICO level can equally earn you good return.

[Script]

If you can't retire right now it's not enough, move some of your bitcoin to shitcoins, be very carefull and study those coins, don't lose your bitcoins trading shitcoins.

[webtricks]

What I suggest you is to constantly look for solid ICO projects.

In what known universe is that diversification? Bet your ridiculously speculative gains on something even more ridiculous and even more speculative?

Approximately 93% of my value is in crypto now. I don't have any plans to diversify in the slightest.

Can you tell me which investment in the world isn't speculative one? All so ever, the main motive of investment is to get capital gains over years. Do you invest for security or for adventure?
Now it is funny that the person whose 93% investment belongs to crypto referring idea to invest in new crypto to be ridiculous. 

[rivoke]

Bitcoin is a new way to invest and yes I was unexpected that bitcoin able reach this far and I'm feel regret because I'm sold most of my bits when value still $ 2000
But once bitcoin reach another record on this month, I'm getting convince myself to hold bitcoin as long as possible

[Hydrogen]

That's a tough question. Some type of DRIP (dividend reinvestment plan) could work. At least there are documented cases of people earning enough using that strategy to eventually retire. I can't say I know of any good investments right now. The US stock market is doing well right now but if Trump was impeached, war broke out or something happened, it could easily swing in the opposite direction. There's danger and fear everywhere.

Of course diversifying doesn't have to be a grand strategy. There are people who diversify by buying things like big screen tv's, gaming consoles/computers and other electronic devices thinking they will hold their value better than a lot of things if a worst case scenario happens.

[freebutcaged]

Hey mate you wont be losing on anything if you just hold and avoid selling at any price, you know there are some people who'd just keep holding for

A few years no matter how the price fluctuates in those years. I promised myself to hold at least 5 Bitcoins for 4 years and only sell if price hits above

$15000 you what that means? that means that I have invested my money for the period of 5 years and the trigger to sell is $15000. if most of the

People use the same strategy there will be no loss and regrets.

[Savik]

Diversification is smart. I'd go with

30% BTC
30% ETH
20% BCH
10% LTC
and 10% for some smaller alt coin projects that interest you

[TexasHuck]

Congratulations on your accomplishment.  My advice is to invest it.  I would keep some BTC, but I would also find the alt coins that have a bright future.  Also, always consider real estate.  Best of luck.

Huck

[darthmaul]

I bought my bitcoin a few years ago now. I was and am a believer, but the massive price increase has me worried that I am now overly invested in bitcoin.


It looks like I have 75% of my money in Bitcoin. Obviously it wasn't always like that, and it with the price rising so much recently, I find myself with a fair amount of money available for the first time in my life!

I know that Bitcointalk probably isn't the best place to ask this, but would you recommend diversifying and if so, in to what?


I was very happy when the price was $1000, but now it feels like I have enough that I could buy a flat or something. It used to be a speculative thing for me, I had invested what I could afford to lose, but now the price has risen so much that it could be easy come easy go, and the price falls back down to where it was last year.

Your strategy is well set for you. But you are putting too much money at risk. If in anytime in the future the price of bitcoin goes way down then it would be very hard to catch the break even point to reach the return of investment.

I had invested what I could afford to lose

Yes this is the good quality of yours which made you so successful and you never feared of loosing your money and then reached 75% mark. But remember you are in crypto world which could have all the possibilities, it may drop until it makes you zero or it may raise until you become millionaire. The point being you should divide your earnings into different investments to have it as your security.

[ASHLIUSZ]

All that occur with the price moves of bitcoin is unexpected. This creates a way for the growth of bitcoin as well dropping downwards in no time. Based on such factors diversifying is the best way to have a stable living, same time with bitcoin we need a satisfactory mind else we cannot get the profit out of the same as the price keeps on growing regularly.

[Uberzugzug]

Diversifying and having a strong investment portfolio is important. This is a way to minimize the risk. For example, you invest in Bitcoin but you should also invest in something far from Bitcoin or any digital currently like stocks.

[entrepmind23]

I bought my bitcoin a few years ago now. I was and am a believer, but the massive price increase has me worried that I am now overly invested in bitcoin.

It looks like I have 75% of my money in Bitcoin. Obviously it wasn't always like that, and it with the price rising so much recently, I find myself with a fair amount of money available for the first time in my life!
I know that Bitcointalk probably isn't the best place to ask this, but would you recommend diversifying and if so, in to what?

I was very happy when the price was $1000, but now it feels like I have enough that I could buy a flat or something. It used to be a speculative thing for me, I had invested what I could afford to lose, but now the price has risen so much that it could be easy come easy go, and the price falls back down to where it was last year.

Lucky for you, you were able to have bitcoins when the price is still low. I would recommend diversifying in other fields like purchasing a flat perhaps as what you stated. It can be a good source of income if you rented it out and have a passive income. Maybe you can take half of your investment in crypto and invest in other fields because we don't know what will happen in the future. Yes there is a possibility that bitcoin's value will double or triple from now but what if the opposite would happen or worse, you will lose your coins in something else. It's better to diversify and reduce the risks than having regrets later.

[Youghoor]

Yeah this reminds me a song that is called "more money = more problems" but yes, if you wanna keep growing that money then do it, diversify, buy those coins that you see that can make a huge pump. Or if you wanna live in a flat do it too, but when you will have the flat what else will you have? if i was you, i would keep increasing that capital until you can make a good living.

[wantjokull]

Amazing story. I can't imagine that you have invested 75% of your money. You bought everything few years ago means you have almost earned more than thousand percent of your initial investment. So finally your patience and time got you big rewards in your life. Happy to see someone is climbing so much in the world of bitcoin. Good example of saving bitcoins for long time. :-)

[Kaller]

Even though Bitcoin is such an amazing investment, you must diversify.
"Never put all your eggs in one basket."
If you buy physical gold it is a good idea as well as some reliable altcoin, although that is nit necessary.

[deisik]

What I suggest you is to constantly look for solid ICO projects.

In what known universe is that diversification? Bet your ridiculously speculative gains on something even more ridiculous and even more speculative?

Approximately 93% of my value is in crypto now. I don't have any plans to diversify in the slightest.

Can you tell me which investment in the world isn't speculative one? All so ever, the main motive of investment is to get capital gains over years. Do you invest for security or for adventure?
Now it is funny that the person whose 93% investment belongs to crypto referring idea to invest in new crypto to be ridiculous. 

Gold is obviously one such investment

Quite naturally, I refer to gold bars and coins, i.e. real and not paper gold, which gold ETF's only promise you but never deliver (especially if things are set to go massively wrong). People who are buying gold are doing that not for speculation purposes but to preserve the value of their wealth. But you should have that wealth in the first place, of course. Read you are already quite happy with what you managed to procure and don't want to spend time on earning more in an active way (like trading or something similar)

[Sled]

Just go for diversifying because it will help you to reduce the risk that you have right now because if you will distributed it and invest it on the good investments then you can earn from different sources and you can lower the risk level because you are not only depending on one source of income so if bitcoin will go down then you don't need to worry because you have some back up investments.

[gentlemand]

Gold is obviously one such investment

Of course it's speculative. People are using it to speculate on regular markets and currencies faltering. Speculation makes up a vast amount of its value. You could also call it hedging, but hedging is ultimately speculation in another direction.

[deisik]

Gold is obviously one such investment

Of course it's speculative. People are using it to speculate on regular markets and currencies faltering. Speculation makes up a vast amount of its value. You could also call it hedging, but hedging is ultimately speculation in another direction.

I guess you should have read the whole post

Instead of replying just to its preamble. If you had done that, you would have learned that I referred specifically to physical gold which makes up only a small part of the whole gold market. The latter mostly consists of paper gold (say, cash-settled gold futures and ETF's). It is this paper gold which makes speculation with gold possible since it cannot be used for anything but speculation (I hope I won't have to explain that), especially if you consider hedging as "ultimately speculation in another direction" (whatever you might mean by that). If you come to disagree with the point stated, try speculating with gold bars or coins and you will see the pain