Do you use diversification?

[Irish Lion]

I don’t think diversification in cryptos is done  only to prevent losses. It is done with the expectation of higher profits. We recently saw what happened with LTC, IOTA and XRP

[jozhkesha]

I used a risk diversification strategy. It seems to me that this can save your capital from losses.

[bitelliotZOOM]

Previously, I did not know what it is. But then I ran into losses and realized that you can not invest all the money only in 1-2 projects. So I learned about risk diversification.

[rickyharun]

I used a risk diversification strategy. It seems to me that this can save your capital from losses.

actually when we diversify our assets into several portofolio, we distributed the risk.if one of our coins has no value when market crash,we still have other coins that could recovered our loss.

[MAUTMALAIKAT]

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?

I will wait until the market is strong. I will hold on and stick to the tokens that I have. I hope some weak tokens will improve soon and will be worth later. Some tokens cannot be predicted to rise soon but we can wait and see market movements that the strong will definitely rise.

[jvper]

Diversification is key for sustained gains. You must not neglect the importance of diversification of risk.

[jan.nicolas]

I use risk reduction. Today, risk reduction is really a serious opportunity to reduce all existing risks to a minimum, especially during the period when bears occupy the market for so long.

[chocopapaya]

Diversification has proven to always be good, in whatever market.
I think what you are describing is more closely related to hedging though.
This is where you invest in two similar projects to minimize risks and take advantages of pumps.

When people say diversification, they typically mean spreading out your investments.
For example, the basic diversified portfolio will be based off of either btc or eth.
It's one or both of these because they have the largest amount of trading pairs.
so around 40 to 60% of your portfolio will be one of those.
Then 20 to 30% on a type of coin you believe in: smart contract coins, privacy coins, etc.
Then the rest in risky, speculative investments like icos.

This approach has proven to give the most steady gains and protect against crashes.

[danielchris]

I think diversification is the play important role for  investment. so it must be used by the investors. because we cannot guaranteed solve the all some.

[cryp24x]

Diversification is really important in terms of investing. We should know how to control ourselves from greed. Sometimes or most of the time, greed does bad thing to our decisions. Let us put our eggs on different basket so that even we loss one basket, we have several baskets to make out another profit, if one altcoin is really going up, we can add up on that coin but not to the extent that we will sell other tokens until we have nothing on the other baskets.

[- ESPERS -]

         The situation will be debated according to the coins. There are coins that grow during this time of the bear, but if they have reached a historic maximum, they deserve to be sold. Otherwise, you have to wait, in order to get a better profit. If you invest in ICO, any profit is welcome, but if you wait too long, most ICO projects break. Diversification is essential in the crypto market. It is important. The choices you make are important. Do not invest all the money in one currency is just as important.

[Korkorjkk]

Diversification is the best you can ever do,  because investing your money in only one coin can result in huge losses.  So it is better you diversify your investment that putting all your money into one investment.

[CryptoBuds]

Diversification is the best you can ever do,  because investing your money in only one coin can result in huge losses.  So it is better you diversify your investment that putting all your money into one investment.

Even putting money in one asset class is a very risky act. So I prefer to diversify not only coins in my crypto portfolio, but also classes of assets - stocks, obligations, real estate, fiat currencies.

[sandgluenick]

In essence, we have to buy strong and high-quality altcoins, given the very weak cryptography of the market at this time of the last wave of last year. so far I have only been able to observe market developments and keep holding the coins that I hold until the price rises again. this is what will happen if more new investors and unclear projects have an impact on market prices.

[Cianix]

Diversification is key for sustained gains. You must not neglect the importance of diversification of risk.

Agree especially in the cryptocurrency market, when a lot of coins are a Scam and go to the exchanges , I think this is the most important rule to make money on the crypto market

[GmBoom]

I still use diversification because I felt unsecured when my investment was just only a single currency token. I want to divert and buy more tokens to hold more tokens and expect to have more profit when time comes for a pump.

[SinLinJim]

It comes, before, and there were no questions in the choice, because you know what you take and how much profit you will get from this choice. And what now, you grab everything that is cheaper or discarded, and even when you think a plus to go. Much by choice and analysis has become more difficult, as well as on the market movement.

[cola-jere]

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?

For better diversification, diversify also outside of the crypto market.
Get into equities, fixed income (bonds) and forex as well.
Cash is a position as well.

[bohr]

Diversification are very important but if you just diversify in crypto, you are not safe because nothing escapes in last year's bear period.
Crypto investing is considered high risk, therefore if you are looking to minimize that risk, you should invest your money in stocks where the market are stable unlike in crypto where it's so volatile. It's not good for day traders when price is going down but holding can save your if you do not panic.

The problem of diversifying when it comes to cryptocurrencies is that diversification is supposedly done to try to reduce your risk but when I see altcoins most of them are many times more risky than bitcoin, I do not see a coin with less risk than bitcoin so what it is the potion of diversifying if you cannot reduce your risk, you will be in a better shape by just investing in bitcoin and not diversifying.

[Barinerro]

This is the only way to protect your portfolio. Diversification should be used not only for coins, but for exchanges as well, because if something goes wrong with one exchange, you would always have an alternative solution.

Agree diversification should be present everywhere , this is a way to save your money, especially for exchanges, especially in recent years a lot of hacking and I think you need to protect yourself