Do we need to diversify?

[pidobir]

This question can be asked to any economist and he will explain to you why it is safer and more reliable to diversify and have many different coins on the accounts.

[panaevewan]

I've always said it's better to have a way out. Imagine that you are playing roulette. And put all the money on one number. Now imagine that these numbers are 10 times larger... so, on the example of roulette, you risk when you put everything in one basket.

[Bitze]

of course you can only buy and hold BTC or ETH if you start in time.

that would also take less effort than constantly looking for ico etc.

for me it would be too boring but basically it would be possible yes 

[JMD07]

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

Doing diversify on your investment will reduce the risk as you have other option in case the other currency will not go as what you have expected. Although if you want to do it all to one coin then the decision is yours. It's just having plan B on your investments.

[doge_shit666]

In the cryptographic market, there are no fixed rules. Currency can fluctuate up, down suddenly depends on many factors. Each currency has a different future. Therefore, you should not focus on a currency that diversifies your investment to limit risk.

[Rox123]

Apart from doing it for safety reasons, it might even be beneficial. With this market we can never truly know who will over take who, so that secondary of even third coin you invest in could pay out more than you thought.

[sandiskumen]

The best you can do to minimize risk. There is no predictable Cryptocurrency so you can not really say certain coins will continue to increase and thus take your profits. You must have some of them so some degradation, others will increase so as to make your ownership a bit stable. You just follow the fact that is being tested several times. To explain the idea of balance and the idea of nuts in a sack can help, so when you put all the nuts in the sack and when we lose or something, frustration always comes up. Diversification is a way of getting alternative benefits and avoiding frustration.

[kaspabha]

Yes theoretically you can. But these cryptocurrency investments have a huge risk. If you can select one great project and invest on it, you may earn a lot. But it is very difficult to select such a project and you have to take a huge risk of loosing money, if it fails. The best thing is select few great projects and invest. 

[cryptb]

If you are very well understand the cryptocurrency and really believe in the success of some kind of coin, then you have to nothing to diversify. You can hold only one title in your portfolio. The main thing here is not to make a mistake, because you only have one chance in this case.

[ngocnga0051]

If you believe in a coin and have little money - do not diversify, put everything in one coin. Diversification of assets is the best economic practice to minimize the risk of loss.

[huongthuy195t]

If you do have enough confidence, and you have done enough research before investing. Then you can choose not to diversify. The premise is that you can take risks. If not, diversification is more insurance.

[Daria_daria1992]

I know cases where people invested money in just one coin and received very good profits.  But all the same, such cases are a rarity.  Therefore, you can hope for luck and invest all funds in one altcoin.  But less risky will be to divide the capital into several altcoins.

[bellaayu]

I think the luck factor to become one of our success in investment. When investing course you already have notes about the coin that you will buy. You will be safer if you don't too many coins being invested so you can do for the long term. that I think is most secure in investing.

[qiwoman2]

It all so much depends on what you're holding, timing is key.  was diversified all these months and saw my portfolio tank to 95% so now I put most of it in just a handful of better coins so I don't lose it all and hope the 5% that is left grows in the next bull run. It all really depends on when we enter the market and what coins and tokens we hold. For everyone it is pot luck and timing. I was unlucky I didn't unload in the last bull run and lost the chance of my lifetime big time. 

[amaydel]

Having a diversified portfolio is a good investment approach than just investing only in one cryptocurrency. Why? Because not all crypto assets you have will fall down together. There will be one or two of it will remain and may eve go in contrast of the current crisis. Moreover, when these crypto assets rise together, you can really earn big profit.

[Godparticles]

Yes, I think that diversification investment is a very good way. It can reduce the risk to a great extent and there will be more possibilities. And I believe that when the market warms up, all the cryptocurrencies will go up, So you can still earn more money.

[BraveSaw]

For sure< if you want to feel safer. If you will hold only one coin and it will go down, you will loose a lot of money. If you will have more coins - risks are much lower.

[hakertajniak]

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

You don't need to diversify your investment if you already know for 100% sure that your coin value will be increased much in the future.
The problem is we never know crypto, there will be a risk that your coin will dropping because any factors. So, diversify is needed to minimize the risk.

[atlantik]

Of course we need to diversify, we don't know what will happen in the future so it's better to spread the risk rather than put all your money in one place, although the project is good, if something really unfortunate happen then it can make a major blow to the price and your investment. Diversify is important but you don't have to diversify it into too many coins.

[Bokugo]

Of course we need to diversify, we don't know what will happen in the future so it's better to spread the risk rather than put all your money in one place, although the project is good, if something really unfortunate happen then it can make a major blow to the price and your investment. Diversify is important but you don't have to diversify it into too many coins.

Yes, you are right this is of course we need to diversify, and this is a good practice to diversify our ownership, but we also have to have selective options for various ownership. I think some of them should be used for relatively stable tokens and some are invested in new tokens.