Should We Diversify Our Investments?

[lKSLMNSLKnkndlksnkJ]

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if  one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

Most of the household name cryptos are good for long term holding and will grow as the market participant numbers increase.

In order to put yourself in a position to receive a happy surprise or two someday, one must invest in alternative currencies.  When the fiat crisis hits, projects which are established at the time will find themselves cash rich as the masses pour anything they've got into gold, silver, and crypto.

Of course one must do their own research, but a good place to start are the ICO rating sites.  Read them all if you can.  You will find a lot of cut and paste work associated with this crowd, but one or more sites are bound to have the tidbits you are looking for before placing money in someone else's hands.

Also, one last thing.  As the crisis begins to hit and cryptos start to take off, there will be a time early on in the process where most cryptos will overshoot their true values and that will be the time to unload a portion of your holdings.

[bit-freedom]

Yes, I do think it is important to diversify our investments. In my case, I hold crypto coins and stocks. IMO, it is good to hold crypto coins that have potential to grow. So it is difficult to determine the number of different coins to invest in.

[krenus]

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if  one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

as we all know, the more choices you make the more opportunities you get. it's unwise to expect one project to provide you with everything you need. make changes, make new investments just for fun of it and see what happens

[tsaroz]

Diversifying is a tool for minimising the loss and every successful business do it.
You need to have an strategy to make a profit in crypto trading. Emotional buys and sells would lead you to loss.
Keeping a track of all those investment manually would be hectic so you should automate most of your coins according to your strategy.

[Crypto_lion]

Diversifying is the safest thing to do in any kind of investment not just crypto currency. Diversify across multiple segments and pick competitors within the same segment as well.

[shamc]

Even if the project looks like a sure thing it can dump for a variety of reasons. Keep at least 25% in bitcoin, then you can diversify the rest of your portfolio

[hesham51]

Diversification is the basic rule not only in Crypto market , but in any market, you need to develop your strategy to for managing the risk wisely to keep it at minimum as much as you can, try not to weed through this blindly.

[RandyMagnum]

If you are investor and not a gambler, then diversification is the main rule to become successful. Many people are pay for such advices and you can use it for free.

[adzino]

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if  one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

Its actually similar, but there is a bit of difference. You will be risking more when you invest on one coin, but you will be making more profit or more loss (!). Higher risk = Higher profit. But, if you wish to stay on the safe zone, spread out your investment on some stable popular coins and others on some new coins. This way, if the new coins do get a bad turn, you can keep yourself covered through your popular coin. Less profit though.

[cola-jere]

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if  one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

If you are to diversify your investment, don't just put it in crypto and buy stable coins - even USDT, USDC or TUSD etc.
Basically it's still crypto.

Buy equities, forex, bonds, precious metals and real estate as well for diversification.

[Cat Coin]

Potential next Aldona unpredictable. To avoid disappointment and significant financial losses, professionals give several recommendations:
Do not invest in one or two assets;
Use different variants of earnings in the crypto market;
Constantly study analytical materials so as not to miss the perfect moment to enter.
The only way you can stay afloat.

[brusnika]

I think that there are people who once bought only ether or only bitcoin, and haven't lost. But this is from the category - people are lucky, and this doesn't mean that everyone will be lucky. To a greater extent, investing is a hard work that requires constant study, because markets and conditions are constantly changing and it's necessary to be flexible to adapt to these changes.

[jhache]

If you want to earn money it is the most recommendable, having so many options to generate extra income, it does not make sense to stop diversifying your investment, it is very important if you want to have at least a fairly constant profit ratio, remember that the end game here is to go for a  safe income, minimizing the risk of loss, so if you want to get rich overnight, the best recommendation is to invest all your money in an ICO and pray for it to explode ...

[modmalaney]

Maybe this is just a simple illustration. the investment focus is on a single crypto, the excess will profit when the price goes up, but a great loss when the price falls.
When selecting multiple cryptos to be owned, it will enlarge the opportunities because of the results among the many existing cryptos does anyone know exactly where that will soar. and when a price decline then it could be another crypto will help to create the conditions not be too large.

[Dragonrage201]

My vote is to diversify since one cannot know the future and any single crypto is always going to involve more risk than a basket of many good cryptos.

[xiaoY]

This requires personal investment, and diversification is also risky. For example, you cannot sell all coins at the same time. So there is no best way to invest, only the way that suits you is the best.

[Btcirene88]

Definitely you should diversify your investment to prevent from lossing out to the capital with this regards market movements. Many investors are now using this strategy cause they know what would be the outcome once the market are continuesly dropping to $6000 USD.

[thesosorr]

For me it's good not to invest all the capital in a company. In this case (investing all capital in one company), in my opinion, investors always prioritize opportunities with threats that will occur. Well, if this company has good progress and a big chance of succeeding with the project, then not investing all capital is a mistake.

[Pamahaw]

Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if  one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.

You've already said it, diversification of investment is always a safety net on our money. Yeah, you are right in case one project fails at least you have other investment which have the probability to succeed. Putting our eggs in one basket will also be a big risk  but it could also give you so much gain. For me the best strategy is to spread as we don't know the future. Don't be in a hurry, haste makes waste.

[Pasaway2701]

Yes, I do think it is important to diversify our investments. In my case, I hold crypto coins and stocks. IMO, it is good to hold crypto coins that have potential to grow. So it is difficult to determine the number of different coins to invest in.

It is advisable to diversify investment for more opportunity of gaining. The price grow on different time to give profit. Though coin is hard to decide which is the more potential, I choose those coin that is popular for investment and many are suggesting that it is the good coin.