Diversifying Your Portfolio in Crypto

[Slow death]

this is not diversification, when the price of bitcoin drops all altcoins drop too so where is the diversification in it? people need to buy cryptptos, but investing in the real world as well and other online investing, that's diversifying. getting stuck in crypts just isn't diversification

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[Riodarvg]

Not all altcoins will change with the price of Bitcoin. Investment diversification can reduce risks. When the price of Bitcoin drops, you can also obtain certain benefits by investing in other altcoins and reduce risk losses.

[darewaller]

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...

A right strategy in crypto investment is, you do not need to diversify if you invest in bitcoins. But, you need to diversify your portfolio with all other investment types along with bitcoin. It means, in crypto space, bitcoin alone is more than enough for any investor and to minimize risks, you may look for other opportunities like stocks or real estate.

Bitcoin alone got the potential to sustain and all other altcoins do come and stay but may vanish at any time when a new "better" altcoin arrives which is the reason, you may completely ignore altcoins. You may see some altcoins may grow 2000% overnight but such things are pure gambling and here we are discussing about legit things. Still, you are ready to risk then you may allocate less than 10% of your crypto capital for altcoin investments (please note less than 10% is not in your total portfolio but only in your crypto allocation).

[arditiyan]

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...

actually diversifying aims to control the risk of loss. but there is nothing wrong if you want to put in one basket of eggs. but the most important thing is the selection of coins that are in one egg really must be a strong coin to face the market situation.
i see if there are thousands of coins in crypto market not 100% affected on btc drop activity completely.

[Hobo66]

Diversification of portfolio is technology to get advantages from different platforms. Selection of multiple portfolio is fantastic In contrast with investment in one and only one product as its yield will be greater. I think that this is not an innovative way because so many individuals have adopted this way. It is important to get advantages by make put cash in so many stock since it is very advantageous.

[ice18]

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.

No your wrong, look at the price history of bitcoin and alts from January this year bitcoin up and most alts also pump, I dont know where you get this observation btc up alts down, in a bull market when btc up alts also in uptrend look at eth, when btc pump eth also pump much higher than btc this year. Diversification is always  the best strategy in investment tried and tested it really works.   

[Mauser]

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

You are right that the correlation between bitcoins and the alt coins is very high. That is why our investment into crypto currencies should be a large part into bitcoins. The diversification doesn't really work here, but it works in a broader spectrum like you diversify out of stocks, bonds and other investment funds. So bitcoin alone is already a diversification from your conventional assets. In my opinion diversification becomes important again when investing into alt coins, because when one alt coin is going to drop in price then this is not pulling down any of the other coins. Alt coins are much more risky and if we spread out our money across multiple coins the risk profile is much lower.

[tygeade]

the correlation between bitcoins and the alt coins is very high. That is why our investment into crypto currencies should be a large part into bitcoins. The diversification doesn't really work here, but it works in a broader spectrum like you diversify out of stocks, bonds and other investment funds. So bitcoin alone is already a diversification from your conventional assets. In my opinion diversification becomes important again when investing into alt coins, because when one alt coin is going to drop in price then this is not pulling down any of the other coins. Alt coins are much more risky and if we spread out our money across multiple coins the risk profile is much lower.

I would say that large part of it should be bitcoin because for me that is the only coin that I feel guaranteed to be strong and not have any problems and have the highest trust. Don't get me wrong ETH is great and all, and there are a few others, but BTC still is the coin that I trust the most.

Not because it would be the biggest earner, let's be honest in any given year there are other coins which gained a lot more than bitcoin ever did, we have seen 100x stuff in other places, bitcoin rarely ever does 100x in a single year, maybe on early times but not sure even if that happened. So, for me, we should invest into bitcoin because we trust it the most, not because it will earn us the most.

[fullhdpixel]

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...

Altcoins are NOT the right option to go investing with for the reason of diversification. Because, altcoins may induce your risks against rewards as 99% of altcoins do not survive over the time. So, never try to diversify your portfolio within crypto space.

You should go for diversifying your portfolio with all types of investment opportunities which includes skills and personal-development. If you develop any innovative skills then you can easily earn and save which must be a greatest investment for entire life. If your skills working for continuous income stream then probably you may never need to worry on ROI as you can wait for any good returns.

[Kelvinid]

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...

Altcoins are NOT the right option to go investing with for the reason of diversification. Because, altcoins may induce your risks against rewards as 99% of altcoins do not survive over the time. So, never try to diversify your portfolio within crypto space.

You should go for diversifying your portfolio with all types of investment opportunities which includes skills and personal-development. If you develop any innovative skills then you can easily earn and save which must be a greatest investment for entire life. If your skills working for continuous income stream then probably you may never need to worry on ROI as you can wait for any good returns.

Because as Bitcoin drops, altcoins will follow, and selling Bitcoin just for the sake of investing altcoins have no sense at all, we just lose than making a profit. We'd rather invest more than diversify our portfolio that unless if we sell altcoins for long-term Bitcoin investment, that gonna be a good decision.

If I have $10,000 as capital, I sorted it out to different potential coins but then I take a huge share of Bitcoin 60/40 sharing. We have to invest those coins that have the ROI potentials so there is no need to diversify our portfolio but rather to keep adding more to it.

[Maslate]

Still, it's good to follow that principle, maybe, for now, bitcoin is the most dominant but we don't know what would happen in the future.

 And also, diversifying does not only minimize losses when the market is bearish but it also increases the chance to be more profitable if the market is bullish, I mean look at the bright side, when the altcoins season comes, some altcoins are way more profitable to invest than with bitcoin, so you'll end up getting more profits not putting your eggs in one basket.

[milewilda]

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.

No your wrong, look at the price history of bitcoin and alts from January this year bitcoin up and most alts also pump, I dont know where you get this observation btc up alts down, in a bull market when btc up alts also in uptrend look at eth, when btc pump eth also pump much higher than btc this year. Diversification is always  the best strategy in investment tried and tested it really works.   

Bitcoin is the main trend setter thats why altcoins would most likely be going up or on the same path but it cant really be denied that there are coins which are opposing into the movement.
Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really
vary on how you do handle up yourself on these kind of situations. Diversify while you can but be wise on taking such step.

[agustina2]

Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really vary on how you do handle up yourself on these kind of situations. Diversify while you can but be wise on taking such step.

Yes, but in the end still depends on how we looked at the situation. Sometimes I'm going all-in to a certain coin that I believe will be potential if I will keep my patience waiting for that day. Diversification is good but that's not my top task. Maybe between 2-3 coins but mostly, always going all-in.

Whatever our decision, to diversify or not, we just need to put effort into how can we manage our portfolio properly in the long run.

[martina14]

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...

There is no big deal for me even bitcoin price value get dump in the market, due to as long as your not selling I cannot consider it that you as a holder is losing the assets, of course not! In fact, nowadays, this is the right time for us to buy altcoins while we are in the alts season. As you can see there are a lot of potentials coins in the market almost all of them got dumped their price where it is a good time to buy then hold in the long term.

[barbara44]

Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really vary on how you do handle up yourself on these kind of situations.

Yeah, there are lots of factors we need to consider before diversifying our portfolio. Budget must be the first criteria but people go for arranging new fund for the reason of diversification but they should start investing from the beginning by keeping diversification in mind. But, people do buy bitcoin for $1000 and then think about diversification then going for new funds for altcoins to diversify their portfolio which may not eliminate the risk but will add up another layer of risks.

After budget, investor must take time to find real potential coins while diversifying. But, most new investors choose random coins just for the reason of not investing in one or same coin which eventually ending up in investing in shitcoins.

[SquallLeonhart]

Budget must be the first criteria but people go for arranging new fund for the reason of diversification but they should start investing from the beginning by keeping diversification in mind.

Unfortunately people come to know about diversification principal only after making their first investment (in most cases and I am talking about myself as well). For example, when people do hear about bitcoin then they will go for investing with it if they do get convinced by the potential of bitcoin and in mean time definitely they will not get time to go for studying the principles of investment which must be the problem you have notified.

most new investors choose random coins just for the reason of not investing in one or same coin which eventually ending up in investing in shitcoins.

Valid point and I agree which is the reason we are having bitcoin still around $50k levels if there would be no other major options in this crypto space then we might have bitcoin to be trading above $100k levels by this time for sure.

[Fivestar4everMVP]

Keep building your portfolio and know the exact time to sell a specific coin. The cryptocurrency market cannot be predicted so, I cannot state exactly what coin will make it to the top or to $15 from 5 cents. So watch the market and read more of white papers. this practice will guide you about different projects. listen to your instinct only. When you are told not to put all your eggs in one basket do not ignore the advice because the volatility of cryptocurrency is unpredictable. If you have let's say 2k to invest watch the coins that have pumped and stayed for quite sometimes before going bearish, check the interval at which it took for the coin to go back to it's previous ATH.

Because, I remember a specific coin Nano that made it to $15 when bitcoin was at 50k early this year, but fell back to $5 when bitcoin slacked back to 29k but after the wave of bitcoin to 59k again the coin remained and was dangling at $5 - $6 which was not a good sign. Altcoins cannot be predicted like bitcoin, but it is better to spread your net of baits (funds) to the river of cryptocurrency. they is no way the fish (profits) won't get to you. Good luck

Very well said mate, I totally agree with you, and your last words which said to

spread your net of funds to the river of cryptocurrency, there is no way the fish(profit) won't come

this statement made me remember one time I had invested in more than 11 different crypto coins, a bear month came and about 7 or 8 of my coins were in red while the rest remained in green, few days later, 2 out of the 11 different coins I hold mooned hard and made me alot of profit which even covered all the losses I was recording in other coins.... This experience made me agree for sure that nothing is like diversity in investment, it makes no sense to tie all your money down in just one or two coins.

[dunfida]

Diversification is always been recommended if your budget permits you but if not or only limited then its up to your own choice because success in investment will really vary on how you do handle up yourself on these kind of situations.

Yeah, there are lots of factors we need to consider before diversifying our portfolio. Budget must be the first criteria but people go for arranging new fund for the reason of diversification but they should start investing from the beginning by keeping diversification in mind. But, people do buy bitcoin for $1000 and then think about diversification then going for new funds for altcoins to diversify their portfolio which may not eliminate the risk but will add up another layer of risks.

After budget, investor must take time to find real potential coins while diversifying. But, most new investors choose random coins just for the reason of not investing in one or same coin which eventually ending up in investing in shitcoins.

Lots of factors indeed when it comes to consideration because you do need sufficient financing plus having that good research plus success wont be a guarantee no matter how good the project is but at least choosing

the project which does have potential could really give those odds of having profits at least.Diversification is always been recommended plus you could really have the chance to recover if one of your investment had

failed down on which you wont really be worrying up that much not compared if you do have only one which it would really be putting you on hard situation.

[checkmatesir]

By diversifying your portfolio you can make huge gain may be you are unaware of the fact that this technique can make you more profitable you can enhance your income as well as capital. By diversifying you have to engage into various portfolio it can be beneficial for you just because there will be chance of at least one portfolio to become greater in worth and you can then surely make profit.

[HUSTLER]

 Not all coins dumps there are still some coins that was left going up along with the Bitcoin the reason why you shouldn't put it all along in one basket is that if the not all coins dumps at the same time and some are still going up. It's good for your fund so it will not be easily lose a position that was just my personal opinion and I choose to diversify my portfolio rather than staying on one cryptocurrency.