To diversify or not to diversify...

[nightxglow]

My rule when investing is to not put whole money into one thing, so I would like to suggest you diversify your investment. Although bitcoin price is low, maybe don't put all your money there, just add up your investment a bit, and try to spend the other half into other coins. ETH is such a good choice too, and there are a lot other altcoins that are quite good for investment. Just need to be careful not to buy shitty coin and lose your money though.

[dmamigo]

I personally prefer diversifying the investments over multiple opportunities including stocks, real estate, bonds, and even golds. Regarding cryptocurrencies including Ethereum, Dash, Tron among few emerging cryptos apart from Bitcoin can turn out to be good. We can't deny as of now that if other cryptos are rising, Bitcoin has to rise, but nowadays the price drop is gradually very large regarding Bitcoin, and less for few coins which means diversifying will help for sure.

[uneng]

It doesn't make too much difference diversifying in crypto universe, because bitcoin drives everything here. Altcoins follow bitcoin's fluctuations upside and down. Some people like to hold altcoins, because they might show higher increasement percentage when compared to bitcoin during a short period of time, but it's more risky to hold them anyway. Bitcoin is the safest crypto currency to invest and I wouldn't put more than 20% of my portfolio in altcoins. To diversify funds efficiently you need to check another kinds of investment like real estate and stocks markets.

[Gamerholic]

I think that a smart decision is always to diversify assets, no matter how attractive they seem. Judge for yourself - the risks that you put into such an investment grow when it comes to one asset, whereas if you distribute this load in different "baskets" the risk will decrease and the expected profit will be comparable. So I think the wisest thing to do is to have a diverse asset portfolio.

[Oilacris]

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

Your choice but always remind off that nothing is guaranteed into this market thats why you should still need to be aware of the risk involved because there

would be no assurance that you would able to make money in next 10 years for you to be able to buy your house or had insured your retirement.

If you do tend to diversify then its your choice because its your money and you are the ones who would really be making out the last decision towards it.

but if were to say that diversifying is always been a good idea although depending on which coin you are tending to buy on.

[Shenzou]

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

I would highly suggest that you wait and see, so for bitcoin i am sure that the investment that you made will defeintly pay off in the future and by the future maybe in a few months or so you capital will be doubled, so i think you should just focus on bitcoin since it is currenty hot and will most likely to net you short and long  term investment, as for the etehreum and the other cryptocurrency i think they will most likely fall beheind and even if the pioint of diversifying is to protect you from drops it won't be as good as bitcoin.

[MCobian]

I think that a smart decision is always to diversify assets, no matter how attractive they seem. Judge for yourself - the risks that you put into such an investment grow when it comes to one asset, whereas if you distribute this load in different "baskets" the risk will decrease and the expected profit will be comparable. So I think the wisest thing to do is to have a diverse asset portfolio.

When investing, I always believe in the term never keep eggs in one basket, because if there are cracked eggs there are still eggs in the other basket.
This means that if we invest in some coins it is much safer, even though we know only Bitcoin is the best crypto, does not mean we have to invest
in Bitcoin only. Why is the capital we use not used for investment in some popular altcoins as well. Divide the capital we have in several coins,
more generate a much more maximum profit in my opinion. So I agree we have to diversify the capital we have in some coins.

[just_Alice]

I'd put most of the investments in Bitcoin in such a situation. It seems that you're looking for long-term investments, and in this case, Bitcoin is much more reliable and promising, than alts. However, it can't hurt to diversify, just in case. The thing is, you can invest a really small amount of money ($50-100) and buy tons of various altcoins that are very cheap now but can become valuable in the future. If you invest $50 in Bitcoin, in years, even if the price increases a lot, you won't make much of a profit from that, but with alts..there is a possibility.

[abel1337]

If you are satisfied with your current bitcoin holding, Diversifying it doesn't guarantee you getting less risk since bitcoin pulls the majority of major altcoins in the market when bitcoin has big movements. But if bitcoin pumps, You would most likely get much more profit on altcoin than bitcoin. If your planning to go long-term, I would suggest just stack up BTC as much as you can and extend your bitcoin holding goals. If you're up for a high-risk high reward, after finishing your goal you can buy some major altcoin to hold.

[fara_buduk]

actually there are many benefits that you can get by investing in bitcoin but there is no harm in trying with altcoins such as etherium, doge and binance because I saw in pump 2020 and the increase in altcoins was so significant and remember this must be long term if you want to trade then I hope you can see and read technical price charts/carts so you can get profit in the short term but this is very risky

[Rengga Jati]

If you are already owning around 0.4BTC and this is for long-term investment it is better to hold them, not converting to altcoins right now.
However, if you have some money, diversification may be a good idea. Yeah, it may be true that altcoins will always depend on Bitcoin. But sometimes, there is also an altcoin season where the price of altcoins can go up so significantly and get more profits from it. However, investing in altcoins will be riskier than BTC.
If you are really ready, better to choose the top altcoins, at least ETH, and also BNB if for long-term investment.

[TangentC]

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

You're asking about investing in a forum, where the majority of people are bitcoiner nutjobs.
Diversification is like an insult to their religious beliefs.

In truth , however altcoins have a much bigger upscale than bitcoin,
one example was Doge , you would have earned more holding doge since the last peak than bitcoin.
* You do have to sell to lock in the profits. * 

But all crypto is a gamble, btc included.
It can easily drop back down below $20K and stay there for a few years.
Not the place, I would be storing money that I planned to use to buy a house.

I also think you need to reevaluate if the goals you set are practical,
it seems like you are thinking , that you will get 1 BTC and it will go to $1 million ,
it might, it also might drop to $10K.

Also prices are not currently cheap, prices are still way higher than they were just 1 year ago,
so looking at the charts is a good idea, and the best idea is to talk over your investing choices with your wife,
not a bunch of random nutjobs in a bitcoiner cultist forum.

[fileo]

That is good investment mate. Bitcoin is the top 1 coin in crypto. It could hit $60k again. However, you should also consider some potential and in the top coins such as Ethereum and Binance.

Ethereum and Binance are included to very promising investment as per today.

For me whether you diversify or not, whatever your decision it is good.

[GreatArkansas]

(...)
Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

You are in the Bitcoin forum, I am afraid that most of the people here are into Bitcoin only or Bitcoin maximalist.
But if I will answer your question, nothing is wrong with buying other coins besides Bitcoin, I also own other altcoins but overall, I have the biggest allocation on Bitcoin.

[electronicash]

One reason why some users are diversifying their investment is that when they want to profit by staking coins. This way they don't have to trade and risk but just wait for the tokens to come into their wallets. This I think is a smart thing to do because it's less risky or so they think but I guess this are for long-term holder's plan. I also have the same reason for diversifying but it's always going to be good to have BTC that can be liquidated faster.

[Kittygalore]

I wouldn't diversify first because I want to make sure that I will be getting much profit as much as possible in a guaranteed to profit currency like bitcoin and after that, I can slowly split my capital and diversify so I can make money even if the other investment is on the red.

[Mikayla Buckley]

First of all, I think your investment in Bitcoin is the right choice. Bitcoin is a very good means of storing value. It is very suitable for long-term investment. Almost anyone who can hold it for more than a year will get income. If you still want to invest For other currencies, from the perspective of stability, I do not recommend that you invest in altcoins. It is best to use mainstream currencies. Most of the funds should still be placed in Bitcoin. If you have spare funds, you can invest in some other currencies in the short term. Optimistic cryptocurrency.

[Lakai01]

Basically, diversification is used to reduce the risk of losses. However, this only works to a very limited extent in the crypto sector, as the BTC price influences the market - if the BTC price falls, the other coins also fall, often much more strongly.

Altcoins in particular, however, offer the potential for enormous price jumps if you look at the price trend of Cardano over the last year, for example. A x50 like Cardano since last year will most likely no longer be experienced with Bitcoin, as the market capitalization is far too high for that. However, altcoins also carry the risk of disappearing completely from the scene again. Check out the top 15 from the 2017 bull run for this:

https://coinmarketcap.com/historical/20171231/

If you compare these with today, you can see quite quickly that many coins could no longer approach their former high.

[maxreish]

Diversifying is the best choice but make sure to choose those altcoins that are worth and potentially gives massive profits. Having a good research before buying those altcoins that you will gonna put in your basket is very significant if you plan for a long term hold.



Or you can still accumulate more bitcoin and buy few altcoins at the same time. As we all know bitcoin will not fail you if you hold it patiently.

[jjdub7]

So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

In general, it is always good to store / invest your money in several different places. This reduces the chance of losing everything at once in a market crash.

I personally prefer a more diverse portfolio, but still in moderation. In my opinion, 5-6 to a maximum of 10 coins is a good option.
And yes, if you have decided to invest in altcoins, according to
Ethereum is a must for your portfolio. You can allocate your budget as follows: 60% BTC, 30% ETH and 10% in other altcoins.