Does crypto help to diversify your investment portfolio?

[VelvetCapital]

I just posted an article on Medium to shed light upon diversification into crypto for traditional investors.
https://medium.com/velvet-capital/want-to-diversify-your-portfolio-adding-some-crypto-might-help-32c62eb402e?source=friends_link&sk=f6265fc28cad39fb0a86095e6d3cfc8a

Curious to hear your thoughts. Is the low correlation with traditional assets going to be persistent? What do you think?

[fiulpro]

Instead if diversity it would add an element that no one would like trust me because not everyone is open to these things , companies involving the IT sector and the software sector is often impressed by these things , but other sectors don't appreciate it much, therefore you should understand that adding this to your resume could spark both negative and positive things .
Hopefully the company appreciates this .

[lionheart78]

Somehow crypto diversifies our investment portfolio.  If a person is into cryptocurrency and investment, he will have tons of options to choose from, ranging from shit altcoins to valuable ones.  Aside from that adding cryptocurrency to our investment portfolio is a diversification itself.

[BrewMaster]

that is the advice that i have been giving others and also following myself! in fact each time a newbie mentions "portfolio" and "diversification" while saying their portfolio only consists of bitcoin and two dozen altcoins i tell them they have NOT diversified at all. and real diversification is when you have traditional assets and then buy bitcoin alongside them to benefit from the huge profit that bitcoin gives you while still having one leg in the traditional market and enjoy the less risk that they give you.
and of course the main reason is that there isn't any correlation between bitcoin and any of the other markets whatsoever.

[Daniel91]

In my case, yes.
I think it's never good to invest money in just one type of investment, it's too risky.
Of course I believe in bitcoin and crypto but I still want to have a much wider portfolio of investments and that's why I invest in both pension and mutual funds and life insurance.
This way I feel more secure and at peace, in a way.
I expect the most from bitcoin but I'm ready to wait and I'm here for the long term.

[noormcs5]

Somehow crypto diversifies our investment portfolio.  If a person is into cryptocurrency and investment, he will have tons of options to choose from, ranging from shit altcoins to valuable ones.  Aside from that adding cryptocurrency to our investment portfolio is a diversification itself.

But there are many people who buy a single coin and wait for it to pump and gain profit. Most of the time, the coins goes down and their whole portfolio is down. It is always said "Not to keep your all eggs in one basket" and this is particularly true for cypto currencies. If you have many coins, even if you get a loss from few, you may still get profits from the others.

[Rozanna84]

Totally) I just keep up to date, read a lot of reviews, choose which one is worth of investing/

[mk4]

I mean, I personally don't think that having cryptocurrencies(probably nothing other than btc and eth) in your investment portfolio is absolutely 100% necessary, but I definitely highly suggest having a small percentage of BTC on anyone's portfolio. Just for the "what if" factor. Because let's be real here, bitcoin isn't guaranteed to reach millions in price(though I'm betting on it).

[ampu]

Investing in cryptocurrencies is more risky than other types of investment but the liquidity of the investments is quite good if investing in the Top 30 altcoin. Investors are sure they will invest part of their money in this market but I think it will not be higher than other markets. This is a new market for all investors.

[mk4]

Investing in cryptocurrencies is more risky than other types of investment but the liquidity of the investments is quite good if investing in the Top 30 altcoin.

Probably below XRP or USDT, the liquidity is actually bad. It won't even need a really wealthy person to move the needle significantly. Also, not to mention that investing in the top 30 altcoins is a bad idea in the first place. Investing in the top 30 cryptocurrencies is far far far different from investing in the top 30 stocks.

[Theb]

Even though I'm not saying it often just concentraing all your money alone in crypto is something a careless person would do. That's why I also have money in traditional investments such as stocks which I also have diversified my money onto different sectors/industries as well. The key here is to diversify your money but at the same time its not too diversified that you aren't maximizing your money that's why when I buy and hold assets I only focus on to 2 to 3 stocks and 1 to 2 cryptos at a time.

[Lauren Smith]

Pretty good article. You can tell outside investors interested in diversifying their portfolio with crypto because we starting to see crypto in the traditional stock markets online. I don't know too much about traditional stocks but I have seen cryptos being added there. This proves people are interested and I think it's important to diversify in different areas. Like crypto is an investment in technology of the future and should be in anyone's portfolio.

[bitvalak]

I just posted an article on Medium to shed light upon diversification into crypto for traditional investors.
https://medium.com/velvet-capital/want-to-diversify-your-portfolio-adding-some-crypto-might-help-32c62eb402e?source=friends_link&sk=f6265fc28cad39fb0a86095e6d3cfc8a

Curious to hear your thoughts. Is the low correlation with traditional assets going to be persistent? What do you think?

It's easier to diversify one category because it's more efficient to monitor.
If you put crypto and stock together in my opinion a little more troublesome because the exchange hours don't occur for a whole week.

[Wendigo]

Crypto investments are more or less akin to gambling right now but so are stocks. I am not sure what is the lesser evil though. Maybe stock up on precious metals?

[TRONTON]

I chatted with many traders, most people who are suitable for crypto trading will throw away their focus on stock/other, and choose diversification only from crypto. They understand the risks and like more interesting fluctuations.

both types of investment have high complexity so they are not confused if they only choose one. So the level of comfort in a portfolio is based on comfort with strategies that often find profit effectiveness.

[rdluffy]

Yes, with cryptos I diversified my portfolio
I don't have only cryptos, I can't afford to invest all on BTC like some guys, I prefer to diversify and have my own business, my cryptos, my bank savings, and even my money under my bed 

Yes we have to be prepared for any kind of situation

[Kyraishi]

I just posted an article on Medium to shed light upon diversification into crypto for traditional investors.
https://medium.com/velvet-capital/want-to-diversify-your-portfolio-adding-some-crypto-might-help-32c62eb402e?source=friends_link&sk=f6265fc28cad39fb0a86095e6d3cfc8a

Curious to hear your thoughts. Is the low correlation with traditional assets going to be persistent? What do you think?

It's going to be hard to attract more institutional investors, there is no question that a lot of them got burned by the market crash last year and there is a 99% chance they aren't going to be coming back in the game.

It just seems like milennials and other risk-taking people who are actually invested in the crypto-scene, and the worst part is that a lot of those people are only invested in crypto-currencies. I personally think, going 100% in crypto is the worst decision you can make, and people need a lot  safer holdings (like real estate).

[hello_good_sir]

Most crypto-investors, like me and my friends will understand that the market is basically a gamble if you make money or not. I personally wouldn't ever invest in crypto if I had a lot more financial freedom, but so far I just put it off as a hobby and if I end up making profits, I sell and maintain my portfolio at a certain value.

Have the mindset that the money you have in crypto is already gone, and I would invest in crypto if I didn't have investments in more safer, traditional options.

[boyptc]

in fact each time a newbie mentions "portfolio" and "diversification" while saying their portfolio only consists of bitcoin and two dozen altcoins i tell them they have NOT diversified at all.

I saw them a lot of times, when they are asked about their crypto portfolio it's no longer a surprise for me if they will mention a lot of altcoins included to their portfolio which is around 10 or more.

and real diversification is when you have traditional assets and then buy bitcoin alongside them to benefit from the huge profit that bitcoin gives you while still having one leg in the traditional market and enjoy the less risk that they give you.

I have understood this lately, real diversification is not just with crypto but you have to include the real-world assets and investments that we know.

[xiboothrezi]

~

It just seems like milennials and other risk-taking people who are actually invested in the crypto-scene, and the worst part is that a lot of those people are only invested in crypto-currencies. I personally think, going 100% in crypto is the worst decision you can make, and people need a lot  safer holdings (like real estate).

You are right, and this is where the importance of risk management is. Even though cryptocurrency has a good opportunity for those who like to take risks, but plan B must really be prepared to overcome the worst. Dividing investment into several parts is one way to avoid losing all at once, as well as in investing cryptocurrency must be further divided into several coins and potential tokens.