Do we need to diversify?

[florinda0602]

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.

We really need to diversify our holdings, Do not enter in 1 coin with all your money. Make sure you divide it into 5 or more coins. . If some coin dump then you still have other coins that can grow up and save your money.

[btcefeyigit39]

diversity investors always make money. it is advantageous for the investor to evaluate your money by taking different coins for your investment. I think we need it.

[Aleksandr_ov]

it is necessary to diversify, because if the coins drop some will remain on top!

[ernoo]

We do not need to, only if we want to lower the risk, something unexpected happened. And surely, there are unexpected things in crypto, so why gamble, there are more than one nice, promising projects in the air.

[Nipun22]

Crypto projects can succeed or fail for many reasons that we cannot control so we do not sure 100% that how any particular coin performs in future. If we surely know that then we invest entirely into the best performing coin. So we diversify because it is one of the best ways to decrease our risks. If we invest our money in one currency and that currency drops badly then we have to do nothing.

[Jerical13]

I am sure that this is not necessary! Because the market will soon begin to grow because of the entry of large players into the game! We can make money!

[Where2Go]

any portfolio needs a certain amount of diversification to reduce risk and improve gain opportunities.

[beautygirl816]

If we have lot of funds or investments already its really better to diversify to spread it in different baskets. Basically, diversification is a way of dividing the risks and having more options in case one does not work. Its like creating reserves to commensurate something that you may lost.

[xsaints128]

It's really important to diversify your portfolio because if you put all your money in one coin and if it goes down then you are gonna suffer great loss but if you diversify your portfolio then you will also diversify your profits and losses as well.

[Sithara007]

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

Looking at the volatility of the various altcoins, I would never put all my eggs in one basket. But it is up to the individual to decide how he wants to invest. If someone is extremely confident about a particular coin, then he may decide to invest solely on that asset.

[Crypcar10290]

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

Diversify is good because in theory helps to mitigate the risk, as your money in not going to depend in the performance of one coin but several different coins which give you more chances to gain profits or less chances to lose money, but in my experience where I am holding a bunch of coins I can tell you that diversify did not help at all; all my coins are down more than 40% right now, so when the market is down every coin is going to be down so it seems that for me it did not work. Now, I would prefer to have maximum 3 good coins and put all my money there.

[chocopapaya]

I actually was wondering the same thing when I first started out.
I didn't know anything about investing and was thinking, "This is simple.  I just buy a bunch of a coin, then two years later I will be a millionare."

It wasn't until I experienced the volatility of crypto first hand that I realized that just doesn't work.
It's easy to have a romantacized image of trading like in the movies.
In movies, a person goes "all in" and manages to win big.

Reality is far more complicated than that.
You have price fluctuations, market movement, regulations, etc.
On top of that, we have our own human weaknesses.
You can get greedy and never sell, only to see the price of your coin go down and you panic sell.
You see other coins do better, get envious, and then make bad trades to try and get more.
Or you can simply just be naive and trust someone who promoted a bad coin.

diversification not only reduces your risk but has been proven by millions of investors over decades of trading to provide better profit.

[brelok777]

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

Risks always need to diversify. You can not invest all your assets in one coin. You can earn, but you can lose everything. Therefore, you need to buy a few coins.

[blue08]

We have to diversify our holdings because not all coins go the same way.  If you put all your money in one coin only and its price dump then you will have nothing but to wait for the recovery of its price. Not only that, if the developer of that coin run away then you'll be sorry and bye-bye to your money. Diversifying is one way of lowering the risk of your investment venture 

[kulakvlad]

You can try and not diversify. Later you will see for yourself what will happen.

[kenharry]

The need to diversify stem from the fact that the uncertainty of the market. Diversification reduces loses amid fluctuations in prices. As one diversify one  increases the portfolio.

[tylerderden]

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

No, we should diversify our holdings and even if we don't diversify our holdings then we should at least don't put all our coins in the same address as it it got hacked then all the coins will be lost. So it's better to diversify as there are many people who play very risky and invest in the coins which are not listed on big exchanges so if those coins get delisisted then those people loose everything they have, so that's why diversification is always stressed upon.

[numbertech]

Diversification can reduce risk,  but you need to find good projects to invest.  Maybe you think that a currency can bring you huge profits, but this market is uncontrollable.  You can't predict whether it can really bring you huge profits, so you must choose multiple good projects to invest. 

[Cianix]

Of course you need to diversify your investments in order to make money without losses! so invest with intelligence)

[crypto4hope]

We definitely have to diversify , no one knows what happen. Diversifying portfolio can save us in the long run.