Do we need to diversify?

[Balab01]

Even if you know your coins, investing in them can be very risky. Diversifying you can save your money if something fails. I think the best way is to invest in two or more coins.

[biznes35]

I am investing no more than 30% of funds in cryptocurrencies, and I diversify among four or more coins. Diversifying investments you're diversifying risks.

[asd12.123162]

verified is important, because to indicate ownership. this is for transaction security in cryptocurrency.
we can collect some coins for big profits.

[duonghi99c88]

For me, I try to diversify. Because we should not put all eggs in the same basket. We never know which coin will worth more in the future, things can change. So it is better to diversify your investment, similar to stock investment.

[duonghi99c88]

I think for now people need to start to look into diversifying into fiat also, most people will disappoint with me, but so far if one have diversified into Fiat in January, it would have outperform most of the Altcoins and even Bitcoin this year, the way thinks are this year, it is likely to be a flat year

[zhuiyongliang8]

Because passwords are unstable, we need variety. The diversification of the various tokens can lead to better profits and less risk. Sometimes it's a loss to diversify when the market drops sharply, so it's best to convert to the USDT before a bear market.

[Sithara007]

There are arguments both for and against asset diversification. Personally, I am someone who favors it. In the past I believe that I benefited from diversification as less than one-forth of my crypto investments were successful. If I had invested in a single asset, then the chances are that I could have got a negative return.

[harrycalik]

Yes we need to diversify our portfolio to manage risks while investing. Many advisors say that maintaining a diversified portfolio of 25 to 30 stocks yield the most cost-effective level of risk reduction.

[jasramos]

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

Diversifying is about putting your funds in multiple places to minimize risk. By allocating your money across different stocks, for instance, you spread the risk around, so that if one stock’s price goes down, you won’t lose all your money at once. You can also diversify across different industries. If you only invest in oil companies and the price of oil drops dramatically, chances are good your portfolio is going to take a hit. But if your money is spread across multiple industries, you’re in a much safer position. Likewise, diversifying in different asset classes hedges against risk in one versus another. A classic example from traditional investing is stocks versus bonds, two asset classes that tend to react in opposite ways to bad news in the market. So if you are diversified across both, one is going up while the other is going down, and a loss in one class is offset by gains in another.

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

[maoasd99z99]

You can make sure that this coin will give you a good return, spread out maybe a little bit less but the safety factor is high.

[phuognz999]

Being into diversify our coins to hold for because as we can see that not that just 1 coin only has a posibility to increase or decrease even more,  atleast we have a option on how many coin. If the other will dump dont worry because other coin will pump. And if all of those coin will go to its ath, you will have a huge profit mate

[phuognz999]

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.

[hamlong99]

Each of us needs diversification, because in this way we can minimize the risks and increase the chances of profit. Of course, the easiest way to buy bitcoin and does not care about anything, but the price of bitcoin has already grown and now the greatest growth should be expected from some altcoins.

[iSparta]

Whether you trade or hodl, diversification is the best strategy. If you buy just one crypto and it fails you're in for big losses.

[metalice]

You should if you dont want to get rekt fast in the market manipulations that we have almost everyweek.I prefer having more bitcoin's proportion in my portfolio because bitcoin does dictate how will these altcoins will do,bitcoin's movements will be responsible how will these altcoins are going to survive every bloodtbaths in the market.

[Gabb]

Actually, I do not think diversification is such an appropriate decision in the crypto market as it has proven to be in most of the institutional markets that exist.

It is enough to see the behavior of most of the cryptocurrencies throughout the months to realize that they are deeply linked with the behavior of bitcoin, so that there are not too many additional benefits for investing in a wide portfolio of cryptocurrencies, except for the increased possibility of enjoying a stroke of luck that allows one of your altcoins to experience a pump that gives you 100% profits from one day to the next, something that happens more rarely every time.

Therefore I bet more for bitcoin than for any other altcoin, because in fact in the current bear market bitcoin is one of the cryptocurrencies that has suffered the least losses this year.

[teskostecenje]

That depends on your portfolio. If your portfolio is mainly made up of stable coins such as Bitcoin and Ethereum, then I would say that there is no need for any diversification. But if the portfolio is rich in smaller altcoins, then it is a different story.

[phutgiaydinhmenh143]

If you want to stabilize it, then you should disperse your funds.
Of course, this is also related to how much money you invest.
If you have very little money, then investing in only one breed is correct.

[SomeJasonGuy]

yes absolutely, diversity is key to a balanced investment approach. And not just crypto-wise, I'm talking about it in a very general sense. Within crypto, it's important to be diversified. But's that's not to say you should have ALL of your investments in crypto. Balance it out with stocks, gold etc. I feels that's the right way to go about it.

[Pitparker]

It is necessary for us to diversify when "playing" with crypto. Why? because the spike of a coin is unpredictable, if it only has one type of coin and it decreases then we are over. When having a variety of coins, if one of them in a red state then we can still rely on other coins to gain profit.