Do cryptocurrencies diversify each other?

[VelvetCapital]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

I've just posted an article on Medium analyzing diversification benefits! What do you think?

https://medium.com/velvet-capital/cryptocurrencies-not-only-diversify-other-assets-they-diversify-each-other-4266eee074ec?source=friends_link&sk=0ff4a0fa7a83eca9966fad28a2da303f

[1715560744]

1715560744

[1715560744]

1715560744

[amacar2]

You have tried to touch a great topic on crypto niche although i dont think there is much benefit with diversifying your investment in bunch of cryptos regardless of the sector that crypto is in. Like you said all crypto will just follow bitcoin price during any huge movement just like how all US stock pump or dump altogether.

True Diversifying will be when you diversify your investment between Stocks, crypto, cash and real estate.

[ice098]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

I've just posted an article on Medium analyzing diversification benefits! What do you think?

https://medium.com/velvet-capital/cryptocurrencies-not-only-diversify-other-assets-they-diversify-each-other-4266eee074ec?source=friends_link&sk=0ff4a0fa7a83eca9966fad28a2da303f

Hmm for me it is best if you buy a cryptocurrency that would best fit for you and also what you are usually using like for example bitcoin. If you are going to ask me in which coin I am using, I preffered to choose bitcoin. I dont use any other coins except bitcoin because for me it is the best coin and it has the highest value for me.

[MinerHQ]

It is not so easy to say that all coins will follow the bitcoin price movement. Sometimes bitcoin prices start moving up then altcoins may stop for a while and only when bitcoin prices start stabilizing then only altcoins prices go up. But if you hold good altcoins then you may get better returns compared to holding just bitcoin. But in the long run, all coins will follow bitcoin prices. I prefer to hold a few good altcoins as well instead of just investing all in bitcoins.

[maydna]

You can diversify your portfolio in altcoin besides bitcoin because the more coins type you have, the big chance for you to make a profit from the bull run later. But unfortunately, we are hard to find what is the coin that we should buy because there is no sign for which is the right coin, and we can only predict for some coins that can increase.

I think you can search for the other coins and not focus on ethereum, ripple, because we have so many altcoins that you can buy. Many people say that ethereum and ripple can go to the higher price in the next bull run, but you don't have to follow them, or you follow them, but you only invest in some money. You need to find by yourself the coins so you can make a profit from the coin and don't just follow other people's advice without research.

[carter34]

Does it make sense to buy a portfolio or should we just hold Bitcoin?

Diversifying is better because sometimes you get a very nice altcoin that are cheap and their rate of increase when bitcoin is rising is very high and fast. This could turn someone into riches within a short time.

[pooya87]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

no they are not. everyone already knows that bitcoin is the only thing that goes up and the rest are always going down against bitcoin. it has always been because everyone who trades or invests are doing it in bitcoin but whenever bitcoin price stabilizes they go into altcoins to make some short term profit then as soon as bitcoin starts moving (up or down) they dump their altcoins and rush back to bitcoin.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

take a look at the long term price movement of altcoins, since they are on a downward trajectory they are never good for long term investment in a "portfolio". they can not be considered as diversification ever.

[Darooghe]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

I've just posted an article on Medium analyzing diversification benefits! What do you think?

https://medium.com/velvet-capital/cryptocurrencies-not-only-diversify-other-assets-they-diversify-each-other-4266eee074ec?source=friends_link&sk=0ff4a0fa7a83eca9966fad28a2da303f

I don't think so. Look at how big ETH is and how many have build on the platform, it is still BTC's bitch. I'd love for cryptocurrencies to detach from Bitcoin but I don't see it happening any time soon. the problem is that a lot of times the market moves together and the reason is because people are afraid that when they see bitcoin dropping it means their alt coins will drop so they start to sell the alt coins and put downward pressure on them. they could be detached today if there were more educated traders in the market and less people without trading experience.

[Thekool1s]

That’s why we’re committed to bringing individual investors pre-designed and thoroughly backtested portfolios that they can invest in within minutes, with minimal hassle.

I gave the article a read for a second i thought this might be something good but turns out it's just another Fancy Pump & dump group trying to use a study ^[1]. What experience does @velvet.capital has in the real world? What kind of results have you achieved? I can optimize a simple MACD EA ^{( Expert Advisor )} through Backtesting and claim X amount returns but that doesn't mean that EA will perform the same in the real market. Backtesting results should be taken by grain of salt... Anyway this sounds like a pump and dump group, basically allow us access to your account so that we can use your money to pump and dump shitcoins... Plus your website looks sketchy as hell...

Source:
[1] https://www.sciencedirect.com/science/article/pii/S1544612318300990?via%3Dihub

[Soots]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

I've just posted an article on Medium analyzing diversification benefits! What do you think?

https://medium.com/velvet-capital/cryptocurrencies-not-only-diversify-other-assets-they-diversify-each-other-4266eee074ec?source=friends_link&sk=0ff4a0fa7a83eca9966fad28a2da303f

Hmm for me it is best if you buy a cryptocurrency that would best fit for you and also what you are usually using like for example bitcoin. If you are going to ask me in which coin I am using, I preffered to choose bitcoin. I dont use any other coins except bitcoin because for me it is the best coin and it has the highest value for me.

On my idea about using bitcoin all alone, that would be unexpected yet when time comes it could reached the highest value. After that we needed to divert on other coins to acquire possible profit, while btc price seems to be stabilized at any moment. For now, it's good to focus with bitcoin and somehow diverting with other promising one would be a good options.

[btc_angela]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

We might say that the rest of the crypto are all dependent on bitcoin's movement. Obviously, every trading pair is BTC/coin.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

I've just posted an article on Medium analyzing diversification benefits! What do you think?

https://medium.com/velvet-capital/cryptocurrencies-not-only-diversify-other-assets-they-diversify-each-other-4266eee074ec?source=friends_link&sk=0ff4a0fa7a83eca9966fad28a2da303f

I'm not sure if investors are really diversifying cryptos'. I mean BTC is still the king, so it doesn't make sense to invest on some shit coins.

[alyssa85]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

We might say that the rest of the crypto are all dependent on bitcoin's movement. Obviously, every trading pair is BTC/coin.

They're not anymore, though.

On Kraken for example, you can trade most alts against dollars or euros. It's no longer the case that you had to convert an alt into bitcoin before you could convert it into fiat.

If an alt does manage to build an ecosystem around it, and also has the ability to be converted directly to fiat, you might start to see divergence.

IMO it's the lack of distinct ecosystems that is holding back alts.

[Ayiranorea]

It all depends with the users, and it is true that the growth of altcoins follow the growth of bitcoin. Op has asked then why can't make an investment only on bitcoin or an altcoin. Here one need to be clear, bitcoin's growth pattern is followed but the growth percentage varies. Through this one can get better profit investing on altcoins for a specific time period and bitcoin at some point. This is why everyone prefer to have a diversified portfolio than a single asset investment.

[garyrowe]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

I've just posted an article on Medium analyzing diversification benefits! What do you think?

https://medium.com/velvet-capital/cryptocurrencies-not-only-diversify-other-assets-they-diversify-each-other-4266eee074ec?source=friends_link&sk=0ff4a0fa7a83eca9966fad28a2da303f

Your notion of when Bitcoin goes up every other cryptocurrency does the same is not always the case as far as i know. There are often times bitcoin bullishness causes massive dump of other currencies and when bitcoin is bleeding others also bleed. My advice to crypto investors is to spot a very good project and invest what you can afford to loose.

[dimonstration]

Is good to hold bitcoin but it's also better to take advantage of the gain we can get in other alts when they increase while BTC is increasing as they might be cheaper than BTc, just make sure to invest with those that are still improving their project and making some effort in these bear market 

[ntsdm1]

As many people know, cryptocurrencies are extremely correlated with each other. When Bitcoin goes up everything goes up and the other way around.

Does it make sense to buy a portfolio or should we just hold Bitcoin?

I've just posted an article on Medium analyzing diversification benefits! What do you think?

https://medium.com/velvet-capital/cryptocurrencies-not-only-diversify-other-assets-they-diversify-each-other-4266eee074ec?source=friends_link&sk=0ff4a0fa7a83eca9966fad28a2da303f

It all depends on your experience.If you are a beginner then most likely it will be more profitable for you to just buy bitcoin

[bitcoindusts]

Buying different crypto is also a form of diversification.  Each cryptocurrency have their own phase of rallying since they have different project owner and developer.  They also have different roadmap and different set of investors.  One crypto may crash yet the other one may rally.  So I believe cryptocurrency is different and diversify from each other.

[chaoscoinz]

I think that what you say is true, that the other cryptocurrencies that are on the market are greatly affected by the volatility of Bitcoin. I think this is because Bitcoin itself, is the original crypto coin that all others on the market were inspired by. Bitcoin is basically the foundation for all other cryptocurencies to stand on, and due to the rapid swinging in the the volatility, the foundation doesn't feel completely solid yet, so other coins tend to waver a little as Bitcoin the price moves up and down.
  Maybe one day in the future, other cryptocurrency beside stablecoins will become a little more self dependent, but its going to take time.

[Asmonist]

For me buying different crypto coins is somehow a diversification but in a little way. A more comprehensive diversification is to invest in different forms of investments like stocks, bonds, mutual funds, real estate, etc. Crypto currencies diversify each other in a way that these coins has different values and rates. Mostly its applicable in trading. But as a whole they are of the same for as crypto currencies.

[Bellarg]

Just look at btc dominance index. There are almost no real diverse in the market