Do we need to diversify?

[goodluck0319]

many times I've seen grows one coin, and drops the other. another option is because sometimes you need to have a reserve of money for a suddenly arisen profitable offer.

[marcripto]

The first rule in the investment sector is to invest only the money that you can afford to lose, the second rule is to diversify. In a market without any regulation as that of cryptocurrencies, it is of fundamental importance to choose different cryptocurrencies to try to reduce the risks of possible losses

[DumbLefty]

Only diversification and a responsible approach to the choice of coins will help you earn good money.

[hasbdzb8382]

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.

[vladraineer]

Because you are so reduce the risk, what 1 project will die more likely, and that will die the whole market is not, so you do not know what exactly will show more growth in the pump market and try to level their profits.

[joseherrera04]

Yes, It's important, because it helps you minimize risks (especially when trading with lots of money) while also expanding the range of transactions you could invest in, which is always recommended

[Dexit]

In my opinion, there is no such cryptocurrency that can be fully predictable and you can be sure that your money is safe. The best thing you can do to protect your investment and to miniize risks is to diversify your investment.                                       

[minairia3]

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

It's all but diversification of risk. Depends on your risk appetite as a start before you go to any kind of investments. Ofcourse the more diversified you are the lower the risk.

[strawberrypills]

Diversifying lessens the risk of losing your investment. If you put all your money in a single coin and that coin suddenly drops by more than 50%, you'll not only loose your profit but also all your initial funds. Whereas when you scatter your money, you only risk loosing part of your initial funds and you can still gain it back when the price of the other coins you have invested in soars.

[Aliya Taj]

Putting your all in one is a big risk that might not result so well especially in the highly volatile crypto market, I think its safer to diversify and have a number of options, so that when you lose at one end you gain on the other. Putting it all in one post a risk of losing a lot when the market is struggling, and here might not be a quick recovery

[hmmkay]

Everyone knows about all eggs in one basket. In order to secure your funds and decrease hypothetical loses, spreading the funds is certainly better, besides, you learn more about other coins and projects. 

[akosipepot]

The first rule in the investment sector is to invest only the money that you can afford to lose, the second rule is to diversify. In a market without any regulation as that of cryptocurrencies, it is of fundamental importance to choose different cryptocurrencies to try to reduce the risks of possible losses

I couldn't agree more. Diversification leads to many more opportunities and increases the chance of success if taken carefully while trying to minimize loss. In crypto this is especially the case, as if one market crushes you at least have other platforms to focus on.

[Kidmat]

Everyone knows about all eggs in one basket. In order to secure your funds and decrease hypothetical loses, spreading the funds is certainly better, besides, you learn more about other coins and projects. 

Invest in other altcoins this way to lessen your risks. Yes certainly spreading our investment is a good decisions when investing in crypto. All of the coins are unstable price so you have to choose project that will bring profit.

[Bonheur]

I think not keeping all of your eggs in one basket is a good idea but people should not do that just to diversify their investments.if you have some coins or tokens you trust don't try to reach dar.

[magz]

Diversification in investment is very important. Because if you put all your money in one coin, then if all goes wrong and that coin goes down, you all lose. Unlike if you put your money in different coins, if one or two goes wrong, other coins might be gain. Then it may compensate the other losses you have to the other two coins.

[Etanllah]

I think its good to diversify because its more chance to hit and less chance to lose money, 1 coin can die and so on. So be more smarter than allin.

[Jayleon]

Diversifying investment involves investing in two or more promising coins to minimise losses. It is the preferred option for many investors. Although the odds for a particular coin to rise may be high, it can happen the other way. So diversification is also very advantageous.

[jefcasidy]

We need to diversify our cryptos portfolio because crypto market is so volatile, having different coin is a good idea because you never which coin will have a major jump in price or the one that will drop in price, So diversifying means staying safe.

[Jlimao28]

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

We need to diversify our portfolio because there is a tremendous chance to loss our capital if we invest in only one coin. There are always advantages of having a lot of investments. If we have many coins to hold, we can expect a huge amount of profits we will get whenever there is a pump.

[Cryptomania098]

Diversification is the first principle of any kind of investing and crypto is no different. While the whole market tends to move in the same direction, individual coins have spikes at different times. Also, diversifying protects you from having your one coin drop off the cliff at a greater rate than the rest. You can go with a single coin knowing it’s a high high risk, high reward play. It’s not for me, but others may give it a shot.