To diversify or not to diversify...

[lienfaye]

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

Well for me diversifying is always a good decision, but in the world of crypto, bitcoin is the most reliable coin to invest in specially during dip.

Majority of alts are just following the movement of btc, so as you notice if bitcoin face a minor or major dump most alts are also doing the same. However it doesnt mean alts are not good to hold, its just that bitcoin is less risky compared to them.

It would be better to set a target amount on holding bitcoin (lets say 1 btc since you already have 0.4) before thinking of buying alts. Eth is one of established altcoin and trusted as well of many investors so if you ever consider to diversify, eth is one of the good option.

[LogitechMouse]

~

Investors tend to diversify because they want to lessen their risk of losing all of their money.
Diversification is good but overdiversifying your capital isn't good too so at least learn to balance and know where to invest your money.

In your case, 0.4 BTC is a big amount already. Diversifying is a good thing if you have a spare money. I would suggest to at least diversify into other coins but don't forget to put some in Bitcoin. If you are asking cryptos only then putting some in top altcoins would be good like Ethereum or ChainLink or Cardano. Now if you thought of investing outside crypto to diversify your portfolio then investing in real estate will be good too .

[bitterguy28]

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 have already holding a big chunk of Bitcoin and that is more than enough if bitcoin  break 100$k this year or the next.

Best to diversify mate , because that is the only way that you can extend profiting in case Bitcoin run or altcoin run comes whos first.

[jossiel]

Thanks for everyone's input, I really appreciate it.

Honestly, I kinda want to just focus on BTC. It seems like the best bet to get to where we want to be in the long run. Maybe after we've got 1+ BTC it'll be worth re-examining.

That's a good choice.

Once you reach 1 BTC+ then it's all on you if you want to go to the next step which is 2 BTC or just 1 BTC + another good altcoin. It's just about stepping up and choose whatever you're comfortable and worth taking the risk.

In the end, it's your portfolio that you're trying to grow.

[Yatsan]

Diversifying your funds into various cryptocurrency is a good choice to be made although focusing into Bitcoin seems to be enough because of its value, popularity and of course credibility, but Bitcoin is not the only existing cryptocurrency in the market and there are still lots of crypto to explore that also have great potential and are worthy for investment of course. You just have to be picky on choosing the crypto that you will do an engagement to somehow ensure you are going to gain profit and of course for the sake of your fund's safety as well.

[Shasha80]

Everyone can certainly determine the best for himself, we just need to ask ourselves that. If dividing the funds we have according to us is good,
there is nothing wrong with doing it. But if we feel that it is enough to invest in Bitcoin, it is our choice. Sometimes what is good for others is
not necessarily good for us. So there is no need to divide our funds when investing in cryptocurrencies if we don't want to do it,  after all I have
found some successful investors who only invest in Bitcoin. Although I prefer to divide my funds into several cryptos, I respect and don't blame
people who only invest in Bitcoin.

[manggis97]

Diversify of investment is important, because alot of others instrument of investment that have lower risk than crypto like Gold and bluechip of stocks. Crypto investment for 10 year, its enough only BTC and take others instrument of investment. If we have times, we can make compounding by learning the trend of global market, so we can predict when good times to enter to crypto, stocks, gold and others asset instrument.

[Sithara007]

First you need to compare the altcoins with Bitcoin, in terms of usage, adoption and acceptability. Take the case of any altcoin (include ETH, ADA or BNB) and you will find that BTC is far ahead of them in terms of all these parameters. On top of that, none of the other coins can offer the protection offered by the PoW algorithm of Bitcoin. The amount of mining hash power which Bitcoin posses right now means that it is near impossible to commit a 51% attack. The other coins are not that secure. In the end, the decision is up to you. Decide whether you want to sell some of your BTC (which seems to be fairly valued) in exchange for some of the overpriced alts.

[traderethereum]

You can still focus on bitcoin, but diversifying will be better to have more investment in crypto.
Ethereum or BNB can be the next investment, but always try to buy at a low price.
If you want to invest $100, maybe you can use the portion 70:30, 70% for bitcoin investment, and 30% for ethereum and bitcoin, but I am sure you will know how much money you will allocate invest in crypto.
The important thing to invest in a crypto is not to panic and have patience because investing in crypto can not always give you profit in the short term.

[Twinkledoe]

Diversifying your funds into various cryptocurrency is a good choice to be made although focusing into Bitcoin seems to be enough because of its value, popularity and of course credibility, but Bitcoin is not the only existing cryptocurrency in the market and there are still lots of crypto to explore that also have great potential and are worthy for investment of course. You just have to be picky on choosing the crypto that you will do an engagement to somehow ensure you are going to gain profit and of course for the sake of your fund's safety as well.

By now, I think they already know that there are other good alts worth investing like ETH and BNB. For me, it is better to diversify your portfolio especially if there are other good options that you can get a hold of. Since they are pretty beginners in this market, it is better to check first the top alts in the market and check if it will suit their taste. But  it is always better to diversify your portfolio so you have different options to take in case something goes wrong with one.

[Slow death]

this:

buying bitcoin and then buying altcoin is not diversifying investment. All of this: bitcoin and altcoin are cryptocurrencies with only 1 difference which is: bitcoin is a safer investment compared to altcoin.

if people want to diversify investments then they should invest in something like:

1 - buy bitcoin and altcoins

2 - invest in real world things like investing in real estate or land or cars or gold or collectibles that have more value as the years go by

[sapnu]

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.

There's nothing wrong actually about investing on bitcoin alone but in reality, diversifying your investment could make you earn much better profit. It is not a smart move to depend on bitcoin alone neither on any altcoin alone, you should still find some other investments that could help increase your profit. There will always be a possibility that bitcoin or any other altcoin's value will go down so make sure you always have your back up plan or an investment that will save you on the time comes but still be careful on choosing which one or more investment you'll pick, pick always the most competent one.

[Luqman]

I appreciate your efforts to have more Bitcoin with your wife.
And for your 0.4 BTC, I don't think that you need to convert it to altcoins.
Actually, diversification is a good way to minimize the risks of losing your money when the price is down. But, of course, you must be careful to choose which coins to buy after having funds later. Never buy the coins based on the hype market.

[UserU]

And for your 0.4 BTC, I don't think that you need to convert it to altcoins.

I don't think he plans to sell his Bitcoins. Rather, just put more funds into alts.

[S4VV4S]

Better to focus on what you have started . If you buy altcoins for other backup investments, it's okay as long as you are ready to risk when playing with altcoins. Because the price is very volatile and if bitcoin is going down, altcoins are going down even worse. So my advice just focus on what you have started .

[Lakai01]

Actually, diversification is a good way to minimize the risks of losing your money when the price is down. But, of course, you must be careful to choose which coins to buy after having funds later. Never buy the coins based on the hype market.

I agree with you about diversification, it is important so that a falling investment is cushioned by other investments.
Unfortunately, this only works to a very limited extent with cryptos. BTC drives the market, if it falls, the altcoins fall as well. As an investor, I must therefore see my entire crypto portfolio as a unit and must not forget or forego other diversifications (real estate, stocks, ...) - stablecoins of course left out.

[michellee]

And for your 0.4 BTC, I don't think that you need to convert it to altcoins.

I don't think he plans to sell his Bitcoins. Rather, just put more funds into alts.

Put more funds into altcoins can be a good idea, but I think he can use 0.1 btc to convert it to altcoins. In that way, he does not need to add or deposit more money and he can use that money for other things. I prefer to do that because that can reduce the risk by using more money in crypto investment. But all in all, he can decide by himself and I am sure he will know what he should do if he wants to invest in crypto.

[Viscore]

Better to focus on what you have started . If you buy altcoins for other backup investments, it's okay as long as you are ready to risk when playing with altcoins. Because the price is very volatile and if bitcoin is going down, altcoins are going down even worse. So my advice just focus on what you have started.

Bitcoin is already a very good start for newbies. I agree that you should still focus on bitcoin until you finally accumulate a whole bitcoin because even if its highly risk, it won't cause you big losses in the end if you intend it to save for long term.

Diversification is good but if you plan to start it now, it would add more risks to your investment. Think of it later after you already come up making huge profits in bitcoin. Ethereum would be a perfect pair too for bitcoin if you plan for future diversification.

[isaac_clarke22]

Well diversify but it would be okay to still just go all in Bitcoin.
pooya87 also mentioned that you should diversify but don't get altcoins because you know there are a lot of shitcoins lurking around the market like you don't want end up investing in those even if the cheapness of the price is tempting.

[Fortify]

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.

Quite simply what you're doing with your money is very dangerous. A wise investor would only be placing 5-10% of all their assets into crypto, as it is extremely volatile and relies on selling to someone else at a higher price. We've already seen in the last month the price has lost over 50% of it's value with some claiming that it could drop even further in future. At only 11~ years old it is very untested compared to other assets like commodities and stocks. If you pick the right stocks you can even earn a dividend, so you get back a chunk of your money each year if the company decides to pay out a portion of their profits instead of re-investing. Keep about the same amount in ready cash as well, which might get slightly eroded by deflation but have a plan to use it again when the market crashes in your favorite asset.