Diversifying Your Portfolio in Crypto

[jaberwock]

If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!

But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.

diversification is an option to reduce the risk of drastic asset declines. but if bitcoin falls then in fact this will be followed by most other altcoins, but indeed with different percentages of decline.

This is the reason, diversification within crypto space is needless; we just need only bitcoin here. We must look to diversify our overall portfolio with all other investments like gold, stocks, bond and real-estate properties. This way most assets will not rise or fall simultaneously.

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[2girls]

It is true When Bitcoin dumps altcoins also dump, so when altcoins are down you can choose some great coins/tokens in the dip. After market recovering they will surely give profit. Recently BTC dumped to 40K, so altcoins also dump. Those who takes entry in some altcoins they have surely made profit.

[isaac_clarke22]

~

When Bitcoin dumps, many shitcoins just see their last days. It is just not that worth buying anymore even if you have a lot to buy any coins and no, from my experience, I was almost zeroed out when I bought some of the alts back then. I never bothered touching the altcoin side ever again after those days.
I don't even day trade anymore.

[TheGreatPython]

It's what most of us are doing for a long time, moving to the stable coin when the market crash is near! I believe before making a move everyone should draw some conclusions and do their homework or else we can lose money, making a mistake in trading always leads to some loss! I wanted to point out that diversifying can be good, I am not a maximalist of any kind, so I believe that many coins have a big potential! If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!

Just because market dropped doesn't mean that people should be moving to stablecoins, in fact they should be moving into crypto and out of stablecoins if you ask me. Since the price is low right now, or at least lower than expected, this means price will go up even higher, that is why we should be buying right now.

I have diversified my portfolio long time ago, at one point it was 100% bitcoin but slowly I traded some of it and got some other coins, and I also added more money and got some other coins as well and now it is more like 30% bitcoin and the rest is others. Up until this fall I had some stablecoins as well but just like I suggested, I ended up buying some crypto with it since I see it going down.

[pinggoki]

Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.

That's what many people will tell you but before you can do that, you're going to need a lot of money to be able to spread your investments far and wide, this advice is good but the only problem is that it's going to take a long time before you're going to do it especially at the beginning where you're experiencing a lot of losses and you're more susceptible to frustration and losses because you don't have the emotional capacity yet to be strong during bear seasons.

[globalpain]

Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.

You will be able to diversify your portfolio if you know exactly how those coins move in the market in most cases, and that is why we need to be more knowledgeable first on the crypto coins and on the market itself. For me, I prefer to invest more in bitcoin like 60% of it and 40% for some solid altcoins as there are times that they can be more profitable than bitcoin. We have to be more careful when it comes to selecting altcoins as some are only good at first and once the market dumps, they can no longer recover.  For newbies, check the history first of the coins so you will have more ideas which of them are have high potentials to survive whenever the market is in bloodbath.

I agree because after all having knowledge and skills is very important before starting whether it's investing or trading,
other than that before buying coins at least we need to do our own research,
and I'm sure everyone has their own way

[virasog]

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...

Bitcoin is the dominator in the market. The whole cryptocurrencies and all altcoins moves are dependent on the bitcoin movement. Altcoin rally up when bitcoin moves up and almost all altcoins are down when bitcoin is down. But this does not mean that we invest only in bitcoin and forget about the altcoins.

The advantages of having both bitcoins and altcoins in your portfolio mean that you can gain the advantage of the altcoin moves but at the same time you have the best asset bitcoin with you which will make you rich gradually. The returns on bitcoin may be slow as compare to altcoins but altcoins give much more returns when they pump.

My advice will be to hold 50 to 60 percent of your portfolio in bitcoin and with the rest of your money, diversify it in the best altcoins of your choice.

[Strongkored]

Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.

Depending on the asset you choose to diversify, if the choice is shitcoins it does not reduce risk but increases risk because many choose shitcoins to get big profits in the short term.
Diversification may be good but it doesn't always work, if you've been in crypto for a long time it's bound to experience how 2018-2019 diversification doesn't help at all to reduce risk because all altcoins including btc go down and worse when btc has gone up many altcoins never even touched their lastest ATH.
So you have to be smart in choosing a coin and I think diversification is only suitable for the long term with coins that have good potential.

[lixer]

Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.

How can your losses be lessen when everything goes down ? but in a bear market I do not believe that everything goes down. Recently we are in a bear but some altcoins manage to stay pumped so yeah diversifying really works and helps reduced our losses and possibly gives us a profit when other coins that we picked are down.

I think that diversification works better on investing than in trading because in trading we need to focus properly and the actions can be done quickly while investing usually takes a lot of time, and movements of the coins can change. Having enough capital is also recommended when diversifying so that you can access more set of coins.

[AakZaki]

Using a diversification strategy in an investment portfolio is a good strategy, but it should be noted that this strategy certainly requires a large amount of capital, because it does not only buy one coin asset, but also buys several assets so that the capital is not only in one asset or not in one basket. Each coin certainly has a different chance. When the market is bearish as it is today, there will be several altcoins that have increased, because not all altcoins have experienced a significant decline. Good research needs to be done to implement this diversification strategy

[carlfebz2]

Using a diversification strategy in an investment portfolio is a good strategy, but it should be noted that this strategy certainly requires a large amount of capital, because it does not only buy one coin asset, but also buys several assets so that the capital is not only in one asset or not in one basket. Each coin certainly has a different chance. When the market is bearish as it is today, there will be several altcoins that have increased, because not all altcoins have experienced a significant decline. Good research needs to be done to implement this diversification strategy

As long you do have funds to do so then diversification would be the best but if not then there's nothing you could do to make those plans real and this is why diversification kind of act would really be varying on your

finances and we know that not all would really be having that buying power and next priority would be choosing on what project you would really be investing in and considering on how many projects in the market
today then finding the best one wouldnt really be easy and if you do really tend to purchase or buy those undervalued or low caps then this would be the toughest challenge of all.

[iv4n]

If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!

But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.

Well, the ones with skills have a higher success rate, the ones without for sure have some good hits! I think there are some basics when you are checking some project, you do some research, you try it if you can, if there's a product or not, etc... and of course, there's a risk!
BNB is a good example, did we risk buying BNB at a $1 price and trading it at the $10-$20 range for a long time... where it's now? So they had something good already, a big exchange, something was happening, and they made nice records last year. So it's simple, find something good that you like, that you tried and it's working well, that project probably has a big potential, risk it and invest!

[milewilda]

If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!

But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.

Well, the ones with skills have a higher success rate, the ones without for sure have some good hits! I think there are some basics when you are checking some project, you do some research, you try it if you can, if there's a product or not, etc... and of course, there's a risk!
BNB is a good example, did we risk buying BNB at a $1 price and trading it at the $10-$20 range for a long time... where it's now? So they had something good already, a big exchange, something was happening, and they made nice records last year. So it's simple, find something good that you like, that you tried and it's working well, that project probably has a big potential, risk it and invest!

We do have different takings and decisions towards certain project and if you do really find out that this is something worthy to risks on then go ahead and invest but if not then try to seek another one as if there are lots of coins in the market which you could choose from and this is where you do really make your own success in the market.If you dont risks then you wouldnt know on what would
be the result so its better to have different investments on different coins as long you do have the money to invest and tend to put lots of eggs on different basket on which it could
possibly give out chances to earn more.

[AmoreJaz]

If we can take a look back at the ones who diversified their long-term portfolio in Ethereum, BNB... (you get my point I guess) I am sure they don't regret it!

But, how many of us got skills to identify the right coins to diversify among 10k options (I read that there are around 10k different cryptocurrenices and tokens are being traded on exchanges). I mean that the options in front of you to diversify is countless which leads us to end up in shitcoins in most cases.

Well, the ones with skills have a higher success rate, the ones without for sure have some good hits! I think there are some basics when you are checking some project, you do some research, you try it if you can, if there's a product or not, etc... and of course, there's a risk!
BNB is a good example, did we risk buying BNB at a $1 price and trading it at the $10-$20 range for a long time... where it's now? So they had something good already, a big exchange, something was happening, and they made nice records last year. So it's simple, find something good that you like, that you tried and it's working well, that project probably has a big potential, risk it and invest!

We do have different takings and decisions towards certain project and if you do really find out that this is something worthy to risks on then go ahead and invest but if not then try to seek another one as if there are lots of coins in the market which you could choose from and this is where you do really make your own success in the market.If you dont risks then you wouldnt know on what would
be the result so its better to have different investments on different coins as long you do have the money to invest and tend to put lots of eggs on different basket on which it could
possibly give out chances to earn more.

one can always try to diversify by checking the top alts if he doesn't know where to start. i understand that with thousand of alts, definitely, people will be confused on where to put their money. if you are worried about investing on a crappy coin, check at least the top 20 and stream down your options. also, why not start with btc. if all else fails, btc will still be here. at least your portfolio will have value no matter what.
check the developments of each project and make sure to follow their socmed in order for you to keep up with their updates.

[BitcoinAccepted]

one can always try to diversify by checking the top alts if he doesn't know where to start.

I agree. If it seems to be challenging in choosing what coins to invest with, with the goal of diversifying one’s portfolio in a profitable manner, but one way to make it easier is to research on the top alts on different websites and perhaps check on what the existing investors has to say with specific coins or projects. And of course, it doesn’t end on putting your capital on such projects, you should also monitor its progress and keep up with the projects updates so you could also make sound judgment and decisions.

[blockman]

Diversifying your crypto portfolio is a better option because it reduces your risk of bearing heavy losses. In a bear market, everything goes down, but if you have a diversified portfolio, then the ratio of your losses will be a lot lesser compared to having all your capital invested in a single crypto. Diversification is considered a great risk management strategy, and you must definitely implement it when trading cryptos.

What you've said is true but it also depends on the choices and the cryptos that you have in your portfolio. If you are mostly holding and diversified into altcoins that aren't so good and usually get into pump and dump, you're more prone to losses. But a portfolio that has bitcoin and ethereum, they're likely to survive more. They're the best balancer of portfolio and based on my experience, I'm satisfied that even if the bear comes and bitcoin and ethereum go down, they're able to recover so fast.

[panukurap]

It's true that this is a problem that sometimes arises when trading. If it is explained here, it seems like it will be too much and difficult to understand, I suggest you open a youtube channel about it. With an explanation accompanied by a video it seems it will be easier to understand. Diversifying the market is not an easy thing because it can happen suddenly following a volatile market.

[Benefactor]

Assuming you put your cash in portions of a solitary organization, there is an extremely high danger that you will lose everything, regardless of whether the organization is a decent one. Expand when the market begins to recuperate. At the point when market is in bloodbath its vastly improved to change resource for stablecoins.

[gamer4156]

That task may be flourishing this year, there may be greater improvements when contrasted with the earlier year or even month which might carry great financial conditions to that undertaking. I decide to expand my portfolio rather than remaining on one cryptographic money.

[pressing207]

I think. that the cryptocurrency market will be sideways for a long time. Or, most likely, it will go below 20,000 for bitcoin. 17000-30000 was poorly traded. A lot of people have invested credit funds, and they will certainly lose them. The big players will empty the change wallets to zero. Diversification into all possible alternative instruments of the financial and commodity market is the most reasonable solution today.