Diversifying Your Portfolio in Crypto

[tvplus006]

...So what would be the right strategy of Diversifying Crypto Portfolio...

Regardless of which way the market is moving, you need to keep part of your deposit in stablecoins. And if the market unexpectedly undergoes a dump, in this case you will have a great opportunity to buy coins at a reduced price. In addition, part of the deposit should be directed to the purchase of BTC and ETH for long-term hold.

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[Oceat]

First, before talking about diversifying you must know what coins you need to invest and make sure you do your own research before investing.
Second, diversifying is being used if the market is starting to dump like most of your coins are in red and you think it's the right time to sell because bear will be coming soon. So you sell those coins who doesn't have the ability to return back to normal again or not that profitable if you hodl them longer.
And third, only hodl Bitcoin for long term or buy more of it if there's a chance like dip/correction/dump/drop. But if you have a better understanding to a certain altcoins you can either buy more of it and it hold it for a long term investment or just don't but instead focus it more on Bitcoin.

[Fatunad]

...So what would be the right strategy of Diversifying Crypto Portfolio...

Regardless of which way the market is moving, you need to keep part of your deposit in stablecoins. And if the market unexpectedly undergoes a dump, in this case you will have a great opportunity to buy coins at a reduced price. In addition, part of the deposit should be directed to the purchase of BTC and ETH for long-term hold.

Having some funds on stable coins would really be not just on making yourself secure on volatility but also you could really able to get in when you do see some opportunities which means its a good measure to have this kind of reserve as always.

Im doing this eversince which i could say that it is really that you could really get in without the need on waiting up for some deposit confirmations
and for those who havent considered this one out then you would really be finding it for yourself.

[Silberman]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.


So what would be the right strategy of Diversifying Crypto Portfolio...

I think you have the wrong idea, when you read some books about diversifying your portfolio the authors are not really talking about buying several assets that fall in the same market, instead the authors are talking about buying assets in many different markets, so if you really want to diversify your portfolio then besides bitcoin you need to buy some precious metals, stocks, bonds, art, real estate and commodities, no diversification is possible if you buy altcoins if you already hold bitcoin because as we know they follow the movements of bitcoin most of the time.

[Ryker1]

Diversification is not always about winning, most of the time its about having a good strategy on how to lessen the risk of losing money, so its advisable to diversify but I don’t suggest to over diversify, have at least 5 good options and you can be good. I diversify on every market, Bitcoin, altcoins, and NFTs, so far I’m still making money, you can also trade or hold depends on your goals and strategy.

Well, this is right and I agree.
Diversification of your portfolio does not mean you always have profit, sometimes you need to divert your portfolio when you see bitcoin is down and you need to divert into a stable coin which is later on repurchase after the market back to the price. Invest money on which coin you believe that it will grow up the price and I stick on the bitcoin, perhaps 90% of it was on bitcoin and the rest is on different altcoins, --and that is right, don't put your egg in one basket but it does not mean, altcoins are my priority.

[goinmerry]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.

So what would be the right strategy of Diversifying Crypto Portfolio...

No one can tell you the right strategy, make your own instead. We have our own strategy Even we do the same strategy here, the ways and methods will be different. Give some tests. Risk some money and observe in the long run if you are making a good following on that test strategy.

There's no specific strategy you can rely on like copying others' way during the situation you have mentioned.

[GreatArkansas]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
(....)

There are also some people who are not believing here.
Their quote is "You don't need to diversify once you are in a good position and sized in", something like that.

Diversifying a portfolio is pretty good since this is applicable even you have a huge or small portfolio or capital.
But overall for me, the best is always "knowing or doing research first before putting your egg on a basket".

[harizen]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
But how we Apply these rules in Crypto Market.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
So what would be the right strategy of Diversifying Crypto Portfolio...

Applying those famous quotes in crypto has a different approach. That's where our fearless analysis will take place. Either of those is proven and effective in the long run. It's just a matter now when should we do it.

Why not try diversifying your portfolio for about a year and see the result for yourself. It might be a long period but that will give you a whole overview of whether that strategy is worth continuing or not. On the way, it won't need a year around to see if that strategy will be effective to you.

[DarkDays]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.

So what would be the right strategy of Diversifying Crypto Portfolio...

No one can tell you the right strategy, make your own instead. We have our own strategy Even we do the same strategy here, the ways and methods will be different. Give some tests. Risk some money and observe in the long run if you are making a good following on that test strategy.

Yes, exactly. Only when real money is at play and you living the experience you tend to learn much faster much quicker. Everyone is in a different situation, so it is best to devise strategies that fit around your situation, your needs.

Test strategies are the best before implementing any long term methods.Take your time, work out what works for you and stress-test before going in with large amounts.

[Sterbens]

...So what would be the right strategy of Diversifying Crypto Portfolio...

Regardless of which way the market is moving, you need to keep part of your deposit in stablecoins. And if the market unexpectedly undergoes a dump, in this case you will have a great opportunity to buy coins at a reduced price. In addition, part of the deposit should be directed to the purchase of BTC and ETH for long-term hold.

Despite the fact that we don't know when to move it to a stable coin is something that is difficult to predict. At least 50% of all portfolio balances there is always an alternative on Stable Coin. I still do it all as a form of vigilance, so that whenever the market experiences an unconscious dump, there are options that have secured our assets at a stable value.

[Ararbermas]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.


So what would be the right strategy of Diversifying Crypto Portfolio...

it depends actually if you really know how to identify scam project.  Because indeed mostly scam project nowadays were copy paste in order to get more attention in the internet.  But using research you can actually obtain specific information wherein to identify new or a scam project. That why its always highly recommended to make TA when it comes investing and etc so be aware.

[dunfida]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.


So what would be the right strategy of Diversifying Crypto Portfolio...

it depends actually if you really know how to identify scam project.  Because indeed mostly scam project nowadays were copy paste in order to get more attention in the internet.  But using research you can actually obtain specific information wherein to identify new or a scam project. That why its always highly recommended to make TA when it comes investing and etc so be aware.

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not.

Diversifying is always been good if you do really have the chance because you would really be having that possible chance of recovery if one of your investment do fails.

So its up on personal choice and capability of course since not all would really be having the money.

[Natalim]

Diversifying does not mean you make an equal percentage on coins you invested, since you understand that bitcoin dictates the entire market, then you should put a higher percentage on bitcoin for your investment.

you can do the following.

50% - Bitcoin
30% - high volume and high market cap altcoins.
20% - low volume and low market cap altcoins.

That's my personal strategy only, it does not guarantee a profit but it works for me.

[tvplus006]

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

[sheenshane]

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week.  That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit.  But Bitcoin for sure is the safe haven if your purpose is a long-term holding, as we can see there's good news to it that for sure it will raise after this correction right now.

[tippytoes]

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week.  That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit.

If you want to diversify, better look for valuable projects with existing market applications. As we have seen, a lot of new projects can't implement their objectives. So if you want a lil bit of assurance, just venture on established alts that have long been in this market. Testing the waters in hype projects are quite risky. But if you have extra funds and your instincts is saying you can profit from it, why not? At the end of the day, you are the one managing your funds.

[el kaka22]

what would be the right strategy of Diversifying Crypto Portfolio...

For crypto portfolio, you may not need to go beyond bitcoin. Some people may suggest to go with ethereum or bnb but I remember these same people were suggesting about litecoin some 3 to 5 years back but as of now litecoin investments are in negative in BTC value.

It would be a better practice for not looking into diversifying within crypto investments but you may extend your portfolio with stocks/bullion/real estate. A truly diversified portfolio must include all types of investments and not just one segment like cryptocurrencies. So, for crypto segment, choose only bitcoin and for stocks go with your countries fundamentally stronger projects. In some culture, people do treat gold and real estate investments as part of their spending like life's basic need but I recommend to do that purposefully.

Overall, diversifying portfolio after bitcoin investments may get negative growth in long run. Because, 99% of altcoins may not sustain in long run.

[chaser15]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.

So what would be the right strategy of Diversifying Crypto Portfolio...

Any strategy that's on your mind will do. The result will now be based on how you will apply it.

The famous advice "Don't put all your eggs in one basket " or " Diversify your portfolio" won't be recommended if it's not effective.

Try to make it effective by doing a self-research and some studies.

[freedomgo]

If you could able to identify directly on whats a scam project then good for you but its not really that something on where everybody would able to do so because experienced eyes wouldnt able on having that 100% sure whether a project is scam or not...

Now a lot of projects are being launched without even having a website. But the lack of a website was previously one of the red flags for the project. And what surprises me a lot is that investors carry money into such projects, counting on the fact that almost all coins after TGE bring several hundred percent profit to their investors. And this is really still a working scheme now, which will be brought down together with the arrival of the bear market.

Investors are looking for hype projects because they want a short-term earning profit and they aren't purely investing because of its use of the project, they invested because they gamble their money and hope it will double the amount within a month or it might a week.  That's right, this seems like a scheme because when the hype will stop, then it will become a shitcoin.

Diversifying a portfolio isn't mean that you will always make a profit because we don't know exactly which is altcoins that have the potential to make a profit.

If you want to diversify, better look for valuable projects with existing market applications. As we have seen, a lot of new projects can't implement their objectives. So if you want a lil bit of assurance, just venture on established alts that have long been in this market. Testing the waters in hype projects are quite risky. But if you have extra funds and your instincts is saying you can profit from it, why not? At the end of the day, you are the one managing your funds.

Of course, if you want to make profits, do not just invest in those newly projects who have no guarantees to succeed. Look for those who are already on top of others because definitely they are the ones who will mostly come up successful and profitable. And if you think of diversifying your portfolio, invest a higher percentage for bitcoin and a little portion for some established altcoins. As long as you hold them for long term, then you should not be triggered easily with price corrections or any price dumps that will make the market look bearish.

[geegaw]

Diversification is not always about winning, most of the time its about having a good strategy on how to lessen the risk of losing money, so its advisable to diversify but I don’t suggest to over diversify, have at least 5 good options and you can be good. I diversify on every market, Bitcoin, altcoins, and NFTs, so far I’m still making money, you can also trade or hold depends on your goals and strategy.

The main purpose of diversification is not for us to win, its purpose is to mine more portfolios that are worth our current time and resources because with just one portfolio, our flexibility diminishes and sometimes our analytical skills cannot be practiced regularly, accompanied by inefficient exploitation is the sudden resistance and long-term strike of projects. Diversity allows us to deal with two problems at the same time, delay to resolve and other department to remain independent so as not to lose target profit but as you say, many people probably still overestimate their diversity, do not know which is mainly consumed and what is garbage