Do we need to diversify?

[tnekramor]

We do need to diversify our investment to minimize risk. Imagine if you invested all you capital in a single project, yes you can earn profit one time but we need to consider if the project you are supporting collapse then you will lose all. Therefore, by diversifying your investment you can balance from profit to profit lose. That is why diversifying and choosing good potential project will provide better profit.

[Bitmore]

There is a temptation to hold only one coin and get the maximum profit. But you can not be 100% sure of the coin so you need to diversify

[poot89]

Diversified returns may not be as large as holding a cryptocurrency, but holding diversified coins can greatly reduce your investment risk. What kind of choice depends on your tolerance of risk and familiarity with the market.

[batang_bitcoin]

We do have our own preference in trading. Before I don't know anything about it and I have diversified that much but in the long run, the more the coins you are holding the more headaches you'll get if the market starts to act weird. It's good to diversify but if you are also good in holding only one coin to get bigger profit when it rises, it's up to you. Every strategy has its advantage and disadvantage and if you think that you are good by holding single coin, follow your choice.

[jlanzago]

Because the most important variable in investing is to manage your risk. Of course you can bet all your money in one coin with the possibility to get a huge win, or a huge loss. If I want to bet, I prefer to do it in Las Vegas. Much more fun and entertaining. I prefer to invest, not to bet. And this implies manage my risk and downside, as well.

[cryptohunterJestes]

Yes , we need to diversify our capital in order to lessen the risk. For example you put all your money in just 1 altcoin but suddenly it drops around 20% then you have 20% loss. But if you divide your money into 3 and one of your coin goes down then only 1/3 of your holding will have a loss.

[bitcoinforus]

Yes, of course this is the rule number 1 for the investor and trader, but the cryptocurrency market has gone a lot of non-professionals who buy all the money 1 altcoin, because the neighbor said that he will grow up! I read in one chat that a person bought for all the PAC coin and it fell in price 300 times! That's what diversification is for!

[torukmakto]

I think diversify is very important for investors to invest in the currency of the crypto-currency. I think investors should invest in one product with all their money. diversify is always beneficial.

[cheezcarls]

Of course. Not diversifying is going to be one of the biggest mistakes that we ever commit here in the cryptoverse. It is like you are putting them all in a single basket, and once it falls, all of them are gone. Investing in cryptocurrencies are the same thing, so we need to diversify our investments very well in other promising coins or tokens in the market right now.

[morphic]

Diversification can greatly reduce the risk. You will not lose a lot of money because of a currency, but it needs to control a certain amount. I think that 5-7 currencies are enough. You can filter what you think is very good. Money to invest.

[setancredit3]

This is one way to reduce the risk of loss for us investment, Never to put all the assets we have in one place, these rules are all applicable in crypto currency investment if we buy one coin and the market falls then we are in big losses but if we diversify our investment in some places altcoin and one coin down but others still there is possibility to get profit, so we do not feel harmed .....

[NeverSop]

Of course we should diversify coin in the cryptocurrency market by developing more and more advanced blockchain technology. When diversified, coin will avoid risks and grow. Investors will also believe in and enter the market more and more, the market will grow rapidly.

[Nilda]

Absolutely! Diversifying investments is Investment 101. Not putting all the eggs in one basket is pretty much self-explanatory.

[bddbd]

People like me are always supportive of diversified investments. The single investment risk is too great. If you have enough experience and risk tolerance, you can also try it.

[Paecga129]

Absolutely. Putting all of your money in a single place is way too much of a risky venture and if it does so happen that the coin that you are putting your money in ends up failing then that means that all your money will be gone. Which is why it is good to diversify and invest in different coins so if it does happen that one coin ends up failing then you have another to fall back on.

[k-west]

Of course we need to diversify our portfolio,the cryptolife is too unpredictable and unstable,even bitcoin can lose 70-80% of its value one day,so this is the part of the game and we have to be ready for this.

[Fortified]

Why do we need to diversify our holdings? why we just all in in one coin to have a one time bigtime profit.

Yes, we need to diversified our altcoin in the wallet just to make sure that if the price were falling we must have atleast one or two coin remains their value, I think this is the strategy we used most of us.

[sophiawhite]

Makes it less risky, still very risky with crypto though.

[MiukoOk]

Yes. Diversification is always a factor in reducing the risk of doing business. Do not put eggs in the same basket. It would be easy to lose everything if they were down or down. That is the principle of investment.

[Firdausiii]

Well, you dont have to diversify if you want it easy. Easy loss and easy work. If you are ready to lose your investment at once then you can put it all in one coin but if you are careful and want to try which other coin is worth investing to also, you will diversify.

Diversification alone can make us have a double advantage, if the market conditions are in good condition. Diversification is very useful for businesspeople. That's why we have to diversify because it aims to back up when there is a problem as I mentioned, so losses can be minimized