Do you use diversification?

[aleksnutis]

For example, you have some altcoin (in my case it's Metaverse ETP) and you expect it to grow. But in a weak market, this altcoin behaves like bull and you have the opportunity now to sell it and buy an asset that looks weak in the market (for example Qash, Tierion, Nem, Odyssey or Republic Protocol) in order to get the greatest possible profit. Or leave a strong asset and wait for its further growth. What do you think about this?

[1715221088]

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[1715221088]

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[MadGamer]

Diversification is a must in any investment really, you shouldn't put all your eggs in one basket.

This doesn't mean that you should spend your money everywhere without doing any research though. The projects must be rock solid with a good roadmap and a strong team otherwise It's not different then investing everything you have in one alt.

[artemdubina88]

I use diversification in order not to be at a loss, to buy in my opinion the crime of coins and without fanaticism )

[MirkoIta]

For example, you have some altcoin (in my case it's Metaverse ETP) and you expect it to grow. But in a weak market, this altcoin behaves like bull and you have the opportunity now to sell it and buy an asset that looks weak in the market (for example Qash, Tierion, Nem, Odyssey or Republic Protocol) in order to get the greatest possible profit. Or leave a strong asset and wait for its further growth. What do you think about this?

It depends a lot on your strategy but investing everything on a single coin/asset/stock can be a lot rewarding but you also risk to lose everything on a single trade. What I've learn in these years is that diversification and money management are the most important things in trading, unless you have access to insider infos which nobody else has access to.

[Zakifon]

Of course.  Diversification is the first and the main thing in trade and investment in the crypto currency.  If you do not learn to diversify your funds - you will lose everything if suddenly something happens to the market

[suburban123]

Investors in the cryptocurrency, by and large, are used to volatility. Nevertheless, many of them are looking for better ways of using their cryptocurrency assets to limit the impact of strong fluctuations. As in all investment portfolios, the best way to hedge against volatility is diversification. The difficulty, however, is that diversification within the framework of cryptocurrencies does not always provide real protection against significant price fluctuations. Most altcoins are more or less following the trend set by Bitcoin, and so diversification into other coins provides a small hedge. The best way to diversify a portfolio is to invest in something that is completely different from the bulk that an investor has.

[Ikingpain]

I think it's worth investing only in proven coins that show good results in the market. But do not invest all in 1 coin. Try to have a minimum of 10 coins in a cryptocurrency portfolio.

[Diced90]

It depends a lot on your strategy but investing everything on a single coin/asset/stock can be a lot rewarding but you also risk to lose everything on a single trade. What I've learn in these years is that diversification and money management are the most important things in trading, unless you have access to insider infos which nobody else has access to.

Yes, diversification is important and yes I do diversify because there is no point in trying to make a profit on long term investment. Sometimes, you can also make profit from short term holding. So its important to spread the risk which inadvertently can be minimized.

[Tiigon]

Why diversification is vital to the success of your crypto portfolio. Although it is said to reduce the systematic risk associated with stocks, Warren Buffet argues that diversification results in overall lower returns. Just like the other varieties of investments, the ideal approach is diversification.

Diversification only decreases your chance of complete elimination in the event a coin collapses. With that diversification come a decrease in risk. It is OK when you get a cluster of high probability trades at once.

[bigcash2011]

The strategy you are trying to post is called flippening that means take profit from one coin then invest in another and take profit from that too and move onto next, although it is very smart strategy but it only works in bull market and if you apply it in bear market you will get trapped in each coin and will only receive loss.

[Red-Apple]

i do diversify but buying altcoins is not called diversification it is called silliness

real diversification is when you don't just buy bitcoin, you buy bitcoin and other real assets like stocks, bonds, metals,...
when you buy altcoins that are connected to bitcoin price and perform poorly in comparison you are just limiting your profit and in many cases you are introducing more risks and losses into your investment.

[hoavantathan]

I choose waiting. Sometimes time is all you need to be successful. If your investment project is real and still operate after ico, you can choose waiting until it finish its roadmap.

[ivlvov]

For example, you have some altcoin (in my case it's Metaverse ETP) and you expect it to grow. But in a weak market, this altcoin behaves like bull and you have the opportunity now to sell it and buy an asset that looks weak in the market (for example Qash, Tierion, Nem, Odyssey or Republic Protocol) in order to get the greatest possible profit. Or leave a strong asset and wait for its further growth. What do you think about this?

Yes, I sometimes use the strategy that you describe, although it's not quite diversification. In general, such a strategy is very risky, you can lose all your money in one day, so I believe you need to be a true professional to make a good profit from it.

[obility]

If i am the one in this position, I will definitely sell it and invest in other coin that are low in price, But what I will do is this, I will sell all then I will half to buy other altcoins and use the remaining half to set another buy order at a lower price.

[ambeo]

For example, you have some altcoin (in my case it's Metaverse ETP) and you expect it to grow. But in a weak market, this altcoin behaves like bull and you have the opportunity now to sell it and buy an asset that looks weak in the market (for example Qash, Tierion, Nem, Odyssey or Republic Protocol) in order to get the greatest possible profit. Or leave a strong asset and wait for its further growth. What do you think about this?

this is probably depends on one's character. i prefer it's divided as the probability of profit at least one of the coin increases. yet i know many people who invest in one only, and quite happy with it

[cryptoherr]

yeah ususally i like a bit of diversification but i think that i do not own more than 10 different altcoins to be honest. Of Course i have some very Tiny postions in some altcoins.

[tanvir232]

Without diversification, you will be at risk of huge loss.
What I do, I fix a certain rate of profit and after getting that I went out from the market.

[jeungo]

This is the most correct system for storing money to use the principle of many baskets and in each basket lies a certain limit of funds that are easier to monitor and monitor the market trend. All the money to keep in one coin is too dangerous.

[echodike]

For me we are in bear market and for me anything that makes gain for me, I will count my self luck and happily sell off and find some good tokens which are down and buy more of the tokens, that's what I will do.

[Suprittandon]

Diversification mitigates risks in the event of an industry downturn. Diversification allows for more variety and options of products and services. If done correctly, diversification provides a tremendous boost to brand image and company profitability. Diversification can be used as a defense. If you donot use how to diversify your funds then you can lose everything in the market if there will be something in the market position.