Investing Urge or Trading Surge

[pawanjain]

So I am in a situation where I have found a potential project I can invest in for the long term and gain huge profits.
At the same time the current market seems the correction is over and another bull run might start.

I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.
What would you guys do if you were in such a situation ?


@mk4
how long you're planning on holding
I can hold very long. Let's say 15 years or so.

what your other investments are(inside and outside crypto)
BTC and ETH
Little amount in Mutual Funds

what your asset allocations are
Not sure how would I describe that

what your trading strategies are
More of swing trading. Buy the dip, wait for a good price to sell (time doesn't matter)

what your risk appetite is, and how much money you can afford to lose
I can afford to lose not more than 25%

[mk4]

We have no idea:

• how long you're planning on holding
• what your other investments are(inside and outside crypto)
• what your asset allocations are
• what your trading strategies are
• what your risk appetite is, and how much money you can afford to lose

Unfortunately only you can answer this.

[sujonali1819]

So I am in a situation where I have found a potential project I can invest in for the long term and gain huge profits.
At the same time the current market seems the correction is over and another bull run might start.

I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.
What would you guys do if you were in such a situation ?

Yes, The current market correction is most likely over and we may see some bull moves during this or next week IMO. Investing and trading both are good at this position. But I will vote to investing more than trading. Because when you invest any project right now, maybe after some months you can get a huge profit if you can hold it strongly. On the other hand if you trade, you can not get profit like that. Because most of the time when trader do trade they try to close the trade with a little profit. And after closing the trade we see many time those coin go even couple of X in a day.

So investing is better at this moment. Yes to increase the portfolio trading is good point but you have to aware ,tricky, experienced during the trading period.

[jackg]

what your risk appetite is, and how much money you can afford to lose
I can afford to lose not more than 25%

There's your answer. I'd say put 10% in if it's a good project and less if it's higher risk.

A good project that fills a niche shouldn't matter how much you put in first (eg if you do 10-100x on it, then you've doubled up at least just from the 10x.

You're also less likely to sell at a loss if you don't care about how much you've put down.

If you want to rate your portfolio, call the mutual funds an asset type 6, bitcoin and eth of type 7 and new coins/low caps of 8 and cash derivatives of 1.

What proportion were 1, 6, 7, 8. What proportion are you happy with (eg I normally treat crypto on its own but did you lump them all together to get 25%)?

[logfiles]

Depends on how good you are with trading.

Given how good I have been in trading (not 95% but above average), If I were in your shoes I would go in 50% for trading and 50%for investment. Investment also involves risk just like trading. What matters is the risk/reward ratio.

Diversification is also good, you never know what could happen in to the world economy the next 10-15 years. I think you saw what happened in the recent COVID-19 crisis. Lots of startups, companies and businesses collapsed. You don't want to go all in without any plan B.

[bitgolden]

I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.
What would you guys do if you were in such a situation ?

Please never go into one project with all of your savings. Always diversify.

Your diversification does not need to be mix of long term and short term investments but it can be mix of multiple long term projects as well.

If you are able to cope up your life along with multiple long term investments then I guess you must go for that. (Also I believe if projects are too good then you can easily convert your long term plans into shorter one at any time you need).

Hope you are already into bitcoin investments with long term plans; I guess you must continue and must have more than 50% of portfolio only into bitcoins with both long and short term goals.

[mk4]

I can afford to lose not more than 25%

Your other answers aside, this is the one that says a lot. On your cryptocurrency allocation, you should probably mostly go with BTC and ETH(I'd personally go mostly BTC but you do you), and only allocate a really small percentage into those low-cap coins, and also a really small percentage for trading. Take into account that BTC and ETH alone can potentially drop 70% (not saying it will, but it's definitely not outside the realm of possibility).

[taufik123]

Depends on how good you are with trading.

Given how good I have been in trading (not 95% but above average), If I were in your shoes I would go in 50% for trading and 50%for investment. Investment also involves risk just like trading. What matters is the risk/reward ratio.

Diversification is also good, you never know what could happen in to the world economy the next 10-15 years. I think you saw what happened in the recent COVID-19 crisis. Lots of startups, companies and businesses collapsed. You don't want to go all in without any plan B.

Trading knowledge is also needed before investing. Because people who invest in crypto inevitably need to know the basics of trading. choosing a 50% trading strategy and 50% investment is the right choice. Risk ratio is also important. all of that is also accompanied by the main strategy and the backup strategy. Investments may be in the next few years will provide more returns.

[darewaller]

Trading knowledge is also needed before investing. Because people who invest in crypto inevitably need to know the basics of trading.

I don't think so. Investors do not need to go for technical analysis but only fundamental things are more than enough to choose the right things. Nothing changes because of you are going to invest in cryptos; investments are common across different domains still you need to make sure about the potential of your asset and nothing more.

choosing a 50% trading strategy and 50% investment is the right choice.

Yeah, probably that may work. But, when considering bitcoin and its unbeatable ROI, I may not go for trading with 50% of my capital. Just 10% or 20% will be enough to risk in trading.

[MrcMrc]

If you are skilled in trading, then you have little to worry about, just trade as that will bring you quicker profits since you ultimately hope to make quick bulks.

But if you are not a skilled trader, then you better diversify the fund and increase your potential coins portfolio.

[agustina2]

I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.
What would you guys do if you were in such a situation ?

If you see that project is really worthy that you think it will be a success in the future, then it's up to you to go all-in. There's no specific time when you will take profits but if that's a new project, expect at least a year unless they will aggressively put some big liquidity on their market.

There's no exact strategy you can follow because it depends on the flow of the market. That will be your task here, to monitor your own investment.

[Stedsm]

I believe that it's better not to think about sticking to your investment because nobody knows what the future holds.
If you believe that your desired project has a lot of potential and you'd like to wait, then going for the same holds higher significance because you're sure that it'll definitely give you better returns. But if you're interested in taking risks, then you may diversify your portfolio and invest into more than one coin only.

[Quidat]

So I am in a situation where I have found a potential project I can invest in for the long term and gain huge profits.
At the same time the current market seems the correction is over and another bull run might start.

I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.
What would you guys do if you were in such a situation ?

Depends on you since you do have your own input when it comes to projects that you are eyeing because not all would really be having the same mindset or jurisdiction
on how they would rate a certain project if its good or bad so its up to your own choice.If you do choose that project then it depends on you since its your money after all.
You might get some advise on here but it isnt ideal that it would be heavily affecting your own decision.If you do seem that this project would pump or explode out
then go ahead and as long you do know when it comes to risk then theres nothing to worry about.

[abel1337]

I would certainly diversify my capital funds. 30/70. 30% for trading and 70% on investing, This will all depend on the skillset in trading you have and the confidence you have in projects/investments you are seeing. Since you said that you can wait for a long time, The 70% funds on investment would certainly be diversifying also on different projects and as you said mutual funds.

[Blitzboy]

15-years is a long period of time. You can trade with 50% of your balance to maximize the profit with the minimum risk. Doge is a good coin to trade for a short time. Taking advantage of leverage trading also gives you more chances to enter a trade (2 options: long for buying and short for selling)

But before everything, you have to learn to trade. It is mandatory because with knowledge, you will be able to make more right decisions

[goinmerry]

I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.

People have different thoughts about this so find your own.

As on my own thing, I don't want a single coin investment but rather diversified it on several coins I trusted so in case of fallout on one, I still have other options.

Taking profits at the right time is crucial and that's what we need to focus on.

[ReiMomo]

It's very crucial to invest in new projects but if you see that there is a potential to gain a profit in the future, why not?
Each of us here has a different point of view in investing either it is a new or existing project, always remember that the new projects is always risky top put your investment and why not to choose those projects that already exist, proven and already tested, all you have to do is to wait for a perfect time frame of having a good profit.

Crypto price movement is always unpredictable, we dont know what will happen in the future. Taking risk is I guess your best decision and diversify your investment into other potential projects, it's your money and it's your call.

[passwordnow]

Well, if you're trusting yourself for that project and see that there's really a potential, invest only what you afford to lose. It's very important to check yourself if you're all in to it and you won't have any regret doing it. As much as for the projects, I'm becoming careful with them because my experience is bad but it could be different for you and you might be better than me. If you think that you have enough btc and eth and you want to get into project that you really believe and that's what you desire and you've done enough research on it, do what you think is right and better for you.

[mersal]

So I am in a situation where I have found a potential project I can invest in for the long term and gain huge profits.
At the same time the current market seems the correction is over and another bull run might start.

I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.
What would you guys do if you were in such a situation ?

If you are really confident that the project you are going to invest in will let you make huge profits then I will refer to just invest in it, don't take extra risk for short term gains especially if you are a long term investor.

Or you can also put that 25% amount into short-term allocation since you can afford such amount so just play with it to make short-term gains while the 75% should be invested on the project you wanted to invest in, diversifying investment mainly needs to diversify your capital amount too.

[tbct_mt2]

The market is in a time when many guys don't know what to do. Buy or sell, hold or trade, invest or trade, take care to be safe or gambling.

It is a chaotic time and if you are not sure what to do. Exit your position and keep your capital in fiat. It is the best for your case.

Exit means you won't get more profit. Is it bad? No.
Stay and get losses together with pressure of uncertainty. Is it bad? Yes.
Stay and hope for profit with no idea how your position will end. Is it bad? Yes.

If you believe in the market and let your position opens or hold your coins, accept any short term or few months of losses. Accept such bad results before you decide to hold or invest now.

If you can not accept it, keep all your capital in fiat.