Diversifying Your Portfolio in Crypto

[Mahanton]

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.

You should just make use of your common sense and just like others been on which you should really be wise on making decisions and also you shouldnt really make yourself in a hurry and we know that diversifying is always been a good idea but of course the risk is more higher but if you could able to handle that then its good to go
but if not then better stick with one investment and be sure on taking profits if you do ever make out some gains which as it should be always.

[TheGreatPython]

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...

First of all you should be straight to the point with that statement – it is only coins that correlates with bitcoin to a certain high level would be doing that. If a coin has zero correlation with bitcoin, then it is not going to be moving together with it. So, it is up to you to select the coins you want to invest in carefully, and make sure that you’re selecting coins that would be worth investing, the ones that has potential to increase in the future.

You don’t just buy any coin you see in the market all in the name of diversification, that’s totally wrong and you will be making a mistake, because that puts you in the position of losing your money when the market is down.

[galambo]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

[Rengga Jati]

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

Yes, this is one of the wise strategies for implementing this idea.
It is actually to lower the risks.
And so far, I am also using this management by diversifying my portfolio. But what makes to pay attention is what kind of portfolio, not all altcoins are worthy to invest in. That is why we must be smarter and more careful when choosing the altcoins themselves.

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

At least, we can have a wider percentage of Bitcoin in our portfolio and make some targets when to sell them.
Second, we should know the right altcoins to invest also based on percentage and what kind of trading or investment it will be.
I will prefer to choose a bigger percentage on Ethereum and also BNB for longer-term investments like Bitcoin.
Then, I will put some in smaller percentage in the middle top altcoins that have good fundamentals and also some closely events that will probably rise up the price.
Third, I will also put in some altcoins for day trade in order to take profits even in small percentages.
This may not be easy, yes, of course, every strategy will always still involve risks. But at least, we can lower the risks.

[TinaK]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

I would rather agree if we put 100% of our investment was on bitcoin and just fully ignore altcoin because they are completely useless without bitcoin.
You will diversify your portfolio if you are not in crypto and stick to bitcoin investment only if you invested in stocks and real estate but don't have profit yet, I would go in bitcoin. Last month, some of my friends diversified there investment from stock to bitcoin because they realized that bitcoin has the potential to gain more profit.

Diversification really helps when you know that the price will be going down, but how you can predict them if the price is unpredictable.

[crzy]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

You should allocate good percentage with Bitcoin since this can be your safe haven while the altcoins are not working properly, holding Bitcoin is always advisable same thing on diversification. Never go all in even on Bitcoin, that’s still risky and not a good way to invest. I do hold Bitcoin and trade altcoin as well, this is very effective for me.

[24Kt]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

You should allocate good percentage with Bitcoin since this can be your safe haven while the altcoins are not working properly, holding Bitcoin is always advisable same thing on diversification. Never go all in even on Bitcoin, that’s still risky and not a good way to invest. I do hold Bitcoin and trade altcoin as well, this is very effective for me.

As we have observed throughout the years, bitcoin has been tested by time. There will be ups and downs, but that's just part of the market. But its value has tremendously increased as compared the last 5 years or so. It is the top alt, so we can assure ourselves that this will not disappear when we are sleeping. And then to diversify your portfolio, look at top 10 alts first and evaluate which one will have the strongest applications in the market. Because with strong app, you know they can survive even with bearish market.

[blockman]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

People don't get this strategy is still supreme than diversifying a lot. It's okay if you want to diversify but be sure that you've got bitcoin as the king of your crypto portfolio.
More than half the percentage of your total assets, that's already good. And it will depend on the likes of the crypto that you want to hold because if you diversify a lot, it's not that good too. So always weigh and balance not just your portfolio but as well as your decisions.

[Silberman]

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".

Diversification is a way to protect your capital in the case one of the markets in which you are invested goes down dramatically, this way even if you suffer some losses it is not something that will be impossible to recover from with the rest of the assets in which you are invested, however if your goal is to increase your capital then diversification plays against that, this means that those that have a large capital and that are already happy with it can use diversification, but those that have a small capital need to concentrate their capital instead in a limited number of assets to increase their profits.

[worldofcoins]

The up or down of BTC directly depends upon purchasing and selling of BTC and on the market trends towards it.
As for diversifying this rule cannot be applied to cryptocurrency due to the lack of trust of people in other digital currencies but it all depends to you which digital currency you can trust upon. Yes, I do agree that diversifying may reduce the risk but it will also affect your potential return.

[Questat]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

I would rather agree if we put 100% of our investment was on bitcoin and just fully ignore altcoin because they are completely useless without bitcoin.
You will diversify your portfolio if you are not in crypto and stick to bitcoin investment only if you invested in stocks and real estate but don't have profit yet, I would go in bitcoin. Last month, some of my friends diversified there investment from stock to bitcoin because they realized that bitcoin has the potential to gain more profit.

Well, it's sometimes to consider that some altcoins are more profitable than Bitcoin and this is found to be a reason why people don't give the 100% investment in Bitcoin alone but they still spare some funds on altcoins. A matter of fact is that we can see huge demand on altcoins which probably it means that more investors are investing in altcoins and diversifying their portfolios.
If we just look for long-term investment, Bitcoin is the best choice but seems it was not the best deal for now. And for me, I use to spread my funds to altcoins as well while leaving 50% on Bitcoin for more profit assurance.

[KennyR]

The up or down of BTC directly depends upon purchasing and selling of BTC and on the market trends towards it.
As for diversifying this rule cannot be applied to cryptocurrency due to the lack of trust of people in other digital currencies but it all depends to you which digital currency you can trust upon. Yes, I do agree that diversifying may reduce the risk but it will also affect your potential return.

It might affect the potential return at times, but it helps to secure the portfolio without much difference unlike any market condition. If there is no diversified portfolio, automatically this could directly make a big change in the portfolio value depending on the bullish and bearish trend of the market. Most of the crypto holders will have bitcoin constituting majority of the portfolio holdings. Now this has changed with the increased price and people are towards altcoins.

[Finestream]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

I would rather agree if we put 100% of our investment was on bitcoin and just fully ignore altcoin because they are completely useless without bitcoin.
You will diversify your portfolio if you are not in crypto and stick to bitcoin investment only if you invested in stocks and real estate but don't have profit yet, I would go in bitcoin. Last month, some of my friends diversified there investment from stock to bitcoin because they realized that bitcoin has the potential to gain more profit.

Well, it's sometimes to consider that some altcoins are more profitable than Bitcoin and this is found to be a reason why people don't give the 100% investment in Bitcoin alone but they still spare some funds on altcoins. A matter of fact is that we can see huge demand on altcoins which probably it means that more investors are investing in altcoins and diversifying their portfolios.
If we just look for long-term investment, Bitcoin is the best choice but seems it was not the best deal for now. And for me, I use to spread my funds to altcoins as well while leaving 50% on Bitcoin for more profit assurance.

For me, i always find it to be more risky investing in altcoins because they tend to dump more than bitcoin. So when it comes to my portfolio, i intend to put 60% of my funds into bitcoin, 30% for established altcoins, and 10% in stocks. In this way, i won't be totally zero in my profits as i have lot of sources for my income. It's better to diversify your portfolio into multiple investments but always see to it that bitcoin would gain the biggest funds since its the most promising asset we have right now. Although its value will not be seen always on top, but i know in the end it will still settle for a price which is higher than other coins.

[dunfida]

Buying only Bitcoin or at least 90% Bitcoin.

I do agree that BTC must be your primary target of investment in crypto. IMO 60 to 70% of your capital should go in BTC and rest of capital for strong alts (top 10 alts at CMC) and short term trading. OP point is also valid that when BTC goes down every coin goes down with it. We have to accept that fact, the logic of equity trading don't fit here.

I would rather agree if we put 100% of our investment was on bitcoin and just fully ignore altcoin because they are completely useless without bitcoin.
You will diversify your portfolio if you are not in crypto and stick to bitcoin investment only if you invested in stocks and real estate but don't have profit yet, I would go in bitcoin. Last month, some of my friends diversified there investment from stock to bitcoin because they realized that bitcoin has the potential to gain more profit.

Well, it's sometimes to consider that some altcoins are more profitable than Bitcoin and this is found to be a reason why people don't give the 100% investment in Bitcoin alone but they still spare some funds on altcoins. A matter of fact is that we can see huge demand on altcoins which probably it means that more investors are investing in altcoins and diversifying their portfolios.
If we just look for long-term investment, Bitcoin is the best choice but seems it was not the best deal for now. And for me, I use to spread my funds to altcoins as well while leaving 50% on Bitcoin for more profit assurance.

For me, i always find it to be more risky investing in altcoins because they tend to dump more than bitcoin. So when it comes to my portfolio, i intend to put 60% of my funds into bitcoin, 30% for established altcoins, and 10% in stocks. In this way, i won't be totally zero in my profits as i have lot of sources for my income. It's better to diversify your portfolio into multiple investments but always see to it that bitcoin would gain the biggest funds since its the most promising asset we have right now. Although its value will not be seen always on top, but i know in the end it will still settle for a price which is higher than other coins.

Diversifying on particular percentage would definitely depending on someones preference or type because not all would really be looking attractive on what bitcoin had attained or achieved neither in terms of volatility or movement.

When you are planning to go with those x100 or x1000 then you would need to deal with low cap coins and if you do like with that 50% up on a day
then it would be no brainer you would go for altcoins.

Depends on your choice because in the end of the day we do tend to accumulate bitcoin as much as we can.

[Botnake]

The up or down of BTC directly depends upon purchasing and selling of BTC and on the market trends towards it.
As for diversifying this rule cannot be applied to cryptocurrency due to the lack of trust of people in other digital currencies but it all depends to you which digital currency you can trust upon. Yes, I do agree that diversifying may reduce the risk but it will also affect your potential return.

It might affect the potential return at times, but it helps to secure the portfolio without much difference unlike any market condition. If there is no diversified portfolio, automatically this could directly make a big change in the portfolio value depending on the bullish and bearish trend of the market. Most of the crypto holders will have bitcoin constituting majority of the portfolio holdings. Now this has changed with the increased price and people are towards altcoins.

I guess we all have our own choices for crypto coins when it comes to diversifying our portfolio. But our preference changes from time to time as it depends on the market sentiment. As for me, i am considering bitcoin as my utmost investment while the rest of it includes ethereum and other promising altcoins. But i know its not always bitcoin that will make me profit the most, in some instances there are also strong altcoins that can give us more profits compared to bitcoin. But as long as i have them in my portfolio regardless of the funds i intended on each of the coins, then i know i don't have to worry even if the market dumps seriously as they are good for long term investment.

[michellee]

The up or down of BTC directly depends upon purchasing and selling of BTC and on the market trends towards it.
As for diversifying this rule cannot be applied to cryptocurrency due to the lack of trust of people in other digital currencies but it all depends to you which digital currency you can trust upon. Yes, I do agree that diversifying may reduce the risk but it will also affect your potential return.

It might affect the potential return at times, but it helps to secure the portfolio without much difference unlike any market condition. If there is no diversified portfolio, automatically this could directly make a big change in the portfolio value depending on the bullish and bearish trend of the market. Most of the crypto holders will have bitcoin constituting majority of the portfolio holdings. Now this has changed with the increased price and people are towards altcoins.

I guess we all have our own choices for crypto coins when it comes to diversifying our portfolio. But our preference changes from time to time as it depends on the market sentiment. As for me, i am considering bitcoin as my utmost investment while the rest of it includes ethereum and other promising altcoins. But i know its not always bitcoin that will make me profit the most, in some instances there are also strong altcoins that can give us more profits compared to bitcoin. But as long as i have them in my portfolio regardless of the funds i intended on each of the coins, then i know i don't have to worry even if the market dumps seriously as they are good for long term investment.

Bitcoin is a must to be our main investment as bitcoin gives us a big profit from the altcoins. While the altcoin sometimes can give us a big profit, that will depend on what coins we have in our portfolio. Related to the altcoin, we need to be careful choosing the coins because not all coins can be the right coins to profit from in the future. It needs more research to find the coins and that is why we need to adjust or modify our portfolio from time to time with the current situation in the market. We can minimize the confusion of managing our portfolio.

[lienfaye]

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

Have plan and make an analysis for the best coins that you want to include in your portfolio. Some coins are moving differently and its normal, you dont have to worry about it as long as the coins that you chose to hold are well-established and unlikely to be delisted in exchanges. Invest a high portion to a coin that most investors trusted the most (BTC), then choose some alts that has high potential. For me, the purpose of diversifying is I have many coins to rely on that can give me profit, less risky and reliable.

[Sled]

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

Have plan and make an analysis for the best coins that you want to include in your portfolio. Some coins are moving differently and its normal, you dont have to worry about it as long as the coins that you chose to hold are well-established and unlikely to be delisted in exchanges. Invest a high portion to a coin that most investors trusted the most (BTC), then choose some alts that has high potential. For me, the purpose of diversifying is I have many coins to rely on that can give me profit, less risky and reliable.

Although we can't assure that everything will be fine and earn huge profit but choosing those potential coins will save you from losing.
I invested those coins that belong to the top 20 coins in the market and I believe in them that I can get something in a month or years from now.

Diversifying our portfolio is always the best practice ever. Why not if we know that these aren't profiting anymore? As we look for a better gaining opportunity in the other coins, we need not sacrifice ourselves and hold those coins who are not anymore but instead, we let them go and replace them with a new one.

[dezoel]

Everyone should try to diversify their assets which doesn’t mean that you should end up buying hundreds of cryptocurrencies that will end up amounting to nothing. Like I do see some people who would buy more than 20 cryptocurrencies and store in their wallets, and it makes me wonder what the hell they’re really doing?

Moreover, that’s not even needed, you can just buy few cryptocurrencies and store them, as long as you are very sure that they are really good and they’re going to make the profit you need. It’s not every coin in the market that moves with bitcoin, there are still some of them that are really good and even when Bitcoin goes down they still continue to move up. So, it’s up to you to be selective and know the best cryptocurrencies to choose from,  aside Bitcoin.

[yhiaali3]

You hear a lot of opinions and everyone tells you that his strategy is the right one, but in my opinion there is no always right or wrong strategy, you must change your strategy according to the market change, you must have a good management of crypto assets that suits your portfolio and your nature as well, some people like for example Quick profit and they can't wait to get bigger profits, while others prefer the long investment to get bigger profits, so each case has a different strategy.
As for not putting all your eggs in one basket, this is to reduce the risks, not only the risks of trading but also the risks of hacking or fraud.