Diversify Investments

[valentine401]

Usually they recommend you to diversify your investment, so you avoid losses.

But as a real approach, having $1.5k, would you invest in how many cryptocurrencies ?

What if I invest little by little, only in Bitcoin, would that work as well ?

Well, i only hold 2 coins and that is bitcoin and ethereum coin, we can call it as a diversify investing because we are focus on 2 but still you can earn more profit if you will place your investment only on bitcoins since the growth is so much faster.

[coinplus]

Usually they recommend you to diversify your investment, so you avoid losses.

But as a real approach, having $1.5k, would you invest in how many cryptocurrencies ?

What if I invest little by little, only in Bitcoin, would that work as well ?

You can invest only in bitcoin if you don't want to invest in other cryptocurrencies. If given the choice, I would just invest in bitcoin as I am almost sure that it will exist for a long time compared to other cryptocurrencies that are only use for speculation purposes. There are other coins that has a real purpose of solving the current problems with regards to transactions to make it more efficient and effective but bitcoin has been the very first cryptocurrency and it retain its position because many still believe in it. If you want to buy then buy in portions or what is known as cost averaging so that you can minimize the risk and losses.

I feel the choice should be made by the OP but if I am to state my opinion, at this point and in the short term when altcoins are actually going to be having some pretty crazy moments when bitcoin peradventure starts consolidating, I would at least put some little bucks into some alts.

Now, this is not for long term as it is necessary to just sell out when the altcoin market is becoming too good to be true or when bitcoin is beginning to show some sign of bull run. Altcoins always bleed in a very huge mighty way.

[slashz9]

depending on where you are comfortable, if you like a fast profit it's better to play on altcoin because you can earn up to 100% more, and also lose, if you like tranquility and long term BTC is the best choice. but in investing it is better to buy some coins than just 1 coin.

[Lagrood]

Use several assets to deversify your portfolio I mean that use not only crypto coins. Take a look at stocks, bonds and other assets. If you investment amount not so big then just buy crypto coins.

[richardsNY]

Well, i only hold 2 coins and that is bitcoin and ethereum coin, we can call it as a diversify investing because we are focus on 2 but still you can earn more profit if you will place your investment only on bitcoins since the growth is so much faster.

It's the first time I see someone mention Bitcoin to book faster growth results than an altcoin, but that's not the case. Bitcoin's market is much larger than any other altcoin, which basically means that altcoins will always grow faster in terms of percentages than Bitcoin when it comes to the price. It's a simple matter of altcoins needing way less to grow more, while if the same amount was invested in Bitcoin, the increase would be minimal. Ethereum as second coin is obviously far ahead of the competition below them, but still isn't a match for Bitcoin, and probably never will be. In other words, risk and high returns is something altcoins offer, while solidity and and fair returns is something that Bitcoin offers.

[MrRiuss]

diversify investments mean that dont put all your money in the same instrument, that is cryptocurrencies. but spread it to other investments.

[RodeoX]

diversify investments mean that dont put all your money in the same instrument, that is cryptocurrencies. but spread it to other investments.

That's right. Buying another coin is not diversifying. Almost all alts are just copies of bitcoin and have noting different to offer. Nor are they safe if a flaw were to be found in the bitcoin protocol. Think of it this way, If in 10 years there is still crypto then there will be bitcoin. If in 10 years there is still crypto then some alt could possibly still be around. However it is highly unlikely that alts will still be here but no bitcoin.

If you want to diversify buy gold, land, etc.

[suburban123]

I would highly recommend avoiding alt-coins. And it would not spread the risk to buy multiple alts since they are all based on the same technology. Want to diversify? Buy some bitcoin, gold, real estate, stocks, etc.

Interesting opinion. Perhaps your examples are really the safest scheme where the risk is minimized. After all, diversification can bring clear advantages to the participant and increase the stability of income, but requires a detailed assessment of domestic resources, environmental factors and deep knowledge of market trends.

[HiRollStaff]

you can choose to risk your money by investing in altcoins, which means you must be willing to lose almost all your money because altcoins can even fall to more than 80% of your value if something goes wrong, or you choose to invest in bitcoin for long-term, which will give you more security and comfort in the future. Diversify is very good, but you run a lot of risks if you invest in projects that are not good, my advice is that you just stay in bitcoin

Good advice for safe investing. Don't you think that its just as safe to invest in an altcoin as long as you don;t invest any more than you're willing to lose? I understand its a bit of a gamble, but when you invest only what you can afford to lose, then there isn't really that same detrimental loss if it doesn't work out. On the other hand, it has a potential to yield huge results.

These are just my thoughts.

[Glorious04]

If you invest it little by little but still on the same coin then it is not diversifying. Diversification in investment minimizes loses. If one of them fail you still have some left, unlike if you put all your money in only one coin or investment, you are left with only 2 posibilities, either you gain or you lose.

[HaXX0R1337]

Usually they recommend you to diversify your investment, so you avoid losses.

But as a real approach, having $1.5k, would you invest in how many cryptocurrencies ?

What if I invest little by little, only in Bitcoin, would that work as well ?

I would search for potential new projects with lower valuation that could give me a higher amount of profit at a short period of time and i have made some killer investments last year, as i started my initial capital of $5k in a couple of projects which gave me profit of more than thousand times, you need to take your time to research about the new project and study their concept and plan carefully and if so you can make money with little diversification.

[Thian778]

Diversifying your investment mean you are or you will create the range of your choices on investments, like when you diversify your own investment you need to invest from cryptocurrency, accessories like Gold and stones, hotels and restaurants, in hospital shares, and other more, its like variety on your investment, but when you say only on cryptocurrency it is more likely unvary.

[The Sceptical Chymist]

I would highly recommend avoiding alt-coins. And it would not spread the risk to buy multiple alts since they are all based on the same technology. Want to diversify? Buy some bitcoin, gold, real estate, stocks, etc.

Solid advice right here.  If I only had $1500 to invest, I most definitely would not buy any altcoins.  Bitcoin perhaps, but with shitcoins you might as well take that $1500 and buy scratch tickets or go down to the casino and play poker.  Hell, you might as well burn it in a fireplace.

That may sound like heresy on bitcointalk, but right now I have serious doubts as to the future of not only altcoins but bitcoin as well.  I think the stock market is looking pretty damn inflated right now, too, but I'd much rather buy a blue chip, dividend-paying stock to hold for years than some altcoin that probably only 200 people will ever own--and own only in the short-term as well.  You can kiss that $1500 goodbye investing in that shit.

So my picks for spreading $1500 around:  One 1/4 ounce gold coin, probably an American Eagle or something Mexican.  $700 worth of Coca-Cola stock in a dividend reinvestment program.  And the rest I'd buy bitcoin with.  That would be enough diversification for $1500.

[yonjitsu]

As what the saying goes, never put your money on a single purse. A good crypto portfolio is teeming with potential cryptocurrencies than having only a few. The more cryptos you have, the better chances of having a good profit too.

[crazymelons12]

In my own understanding and analysis I do think diversifying investments on digital coins will be helpful in not losing so much because you can have more options to choose when you feel you are losing in one of the currencies you can recover from among the others coins.

[gabmen]

As what the saying goes, never put your money on a single purse. A good crypto portfolio is teeming with potential cryptocurrencies than having only a few. The more cryptos you have, the better chances of having a good profit too.

And it also shouldn't be all crypto. To deversify is also to delve into other markets. Good that you have a diversified crypto portfolio but wouldn't it be better if you also have investments other than crypto like stocks and other businesses?

[clickerz]

As what the saying goes, never put your money on a single purse. A good crypto portfolio is teeming with potential cryptocurrencies than having only a few. The more cryptos you have, the better chances of having a good profit too.

As always, diversification is a good strategy. "Do not put your egg in one basket they say." This is due to that fact that when you lose on one coin, the other might be in gain. Just hold only coins that is reliable and with good projects.

[speem28]

Having a $1.5k and investing it in bitcoin slowly could work if the market is on a bearish state where there is a high chance of the price going even lower than the first point of your entry but I'd rather not risk it and let greed take over me. If I were you, if I see a good opportunity to invest in bitcoin, I will go all in, and just add more if I have some extra left later if the price still went lower.

[cheeseandcrackers]

I would invest 10% at a time in different alt coins, and keep a decent amount in bitcoin or ethereum to hold onto.  That way you can account for more possibilities.  If the price of something you bought drops, buy more of it so your cost average gets lower.  Or if another project shows up with tons of promise, you still have some to invest.  $1500 isn't a lot to work with, but diversifying is very very important.

[MintCondition]

I would invest 10% at a time in different alt coins, and keep a decent amount in bitcoin or ethereum to hold onto.  That way you can account for more possibilities.  If the price of something you bought drops, buy more of it so your cost average gets lower.  Or if another project shows up with tons of promise, you still have some to invest.  $1500 isn't a lot to work with, but diversifying is very very important.

Diversifying is what we need to be able to manage the excessive numbers of Alts, we cannot guarantee that our coin will always increase in value, that's why we need to have as many backups as we can to still earn when the market seems to be in red.