Diversifying Your Portfolio in Crypto

[Issa56]

Seriously my own believe is that the only coin that's not a shit coin is bitcoin, any other coins are shit coins but if you are into cryptocurrency I believe you should still diversify your portfolio but make sure the higher percentage of the coin in your wallet is bitcoin, then you can invest in other altcoins because you don't really have to depend on only one coin. Sometimes some coins don't really follow bitcon movements incase if any coin in your wallet those that you can easily take your profit.

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[Questat]

Seriously my own believe is that the only coin that's not a shit coin is bitcoin, any other coins are shit coins but if you are into cryptocurrency I believe you should still diversify your portfolio but make sure the higher percentage of the coin in your wallet is bitcoin, then you can invest in other altcoins because you don't really have to depend on only one coin. Sometimes some coins don't really follow bitcon movements incase if any coin in your wallet those that you can easily take your profit.

Ohh yeah...then it means that ETH and BNB are shitcoins considering that only Bitcoin is legit and not shitcoins? I don't know what you are thinking mate but your wrong. We can't generalize the market as these altcoins, even many of them are worthless, junks, or whatever we call them, still we can find good projects from them. Coz if you are right, then there is no sense to invest in crypto.
If you believe that Bitcoin is the only profitable in coin in the market, that was your presumptions but the majority had think differently from you, we still trust altcoins the same thing we trust Bitcoin.

[bhadz]

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?
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.

This is the misunderstanding of others. When it's been said that they should diversify, they're going for tons of altcoins that they shouldn't really do. It's okay to diversify whether you only have 2 or 3 altcoins to diversify with.
With that strategy they do, they're going to learn from it and will eventually have to sell the others and will lessen the number of their altcoins and won't expand that much just to make themselves diversified.

Misconception in terms of choosing assets to hold, diversifying to a much lesser numbers of assets may also lessen your stress when the market dumped down that hard, you need to pick good coins to hold while diversifying your money, one the market start favoring you your assets will bring a decent amount of benefits.

More on your understanding of assets that you will hold and how you project the future of your investment.

It's not enough to say that someone's diversified. But with the choices of the coins that he has, that's going to play a big factor and matter to his portfolio.
There's a deeper sense for being diversified and it's not even impressive when somebody gets to hold a bunch of dying coins and tells the others that he's diversified with his assets.

[AicecreaME]

Thank you for this Helpful advice.

Some Youtuber or crypto Analyst says. put your money in different coins, memes, Exchange coins, Metaverse and gaming coins, DeFI coins etc
What is the Psychology behind that advices.

I don't know about the psychology, but as I said before, diversifying is about reducing risk, but reducing the potential return as well.

In classical investment theory, one must diversify to avoid losing everything. If you put your money in shares of a single company, there is a very high risk that you will lose it all, even if the company is a good one. However, if you divide your investments among several stocks, properties, commodities, etc. you reduce the risk a lot.

In the crypto world this seems silly to me, as all alts have been proven time and time again to lose against Bitcoin in the long run. The only more or less solid contender is shitEthereum. There are many fancy alts that promise they are going to be the next Bitcoin but just as quickly go up as they go down.

I would recommend you diversify but into other assets. If buying crypto buy Bitcoin, and if anything a bit of Eth or some other you trust (lol) and if you want to diversify more, buy stocks, mutual funds, RE or commodities.

Precisely.

Diversifying your portfolio means reducing risk because your plan is for long term, not short term trading, so basically you ignore all the opportunity you might miss because let's say you put low leverage. Your return might be low but at least you're safe from big liquidation, your funds are safe, and you're making it to survive for long term.

Diversifying also means that your plan is solid, not based on news but based on the data and information you've got on your research.

[Sanitough]

although altcoins follow the movement of bitcoin, they have a different percentage increase in movement, and usually the increase in altcoins is higher than bitcoin. For diversification, I think choosing bitcoin and some of the top altcoins will make our funds more secure and we will get a bigger profit as a result of the increase in altcoins. for me bnb and eth remain my favorite must-have altcoins

Since bitcoin always dominates the crypto market, bitcoin will always be my top investment with its highest allocation. And investing into leading altcoins like ethereum, BNB, and SOL will be good alternatives to diversify my portfolio. However, you can have your own choice of coins which you think will become profitable in the future. Others are taking risk investing in meme coins, but they are only good once there is hype and investing in memes will only be profitable for short term, but if you aim for huge profits, look for the most established coins in the market as they always recover every time there is dips.

[AnonBitCoiner]

Yes its best strategy to divide portfolio. Some extra stable is compulsory in your portfolio and wait for big crash. These stable coin should only used when market totally dumped and are in full fear. This can give easy 2x - 3x ptofit when bitcoin stable for sometime.

[rojan]

Altcoins are dependent on bitcoin and are considered as separate coins.  It would be wise to invest in them.  If Bitcoin can be the future of altcoins based on it then it can be seen that it can be seriously harmful so here you have to keep an eye on altcoins.  And as you gain a lot of knowledge on altcoins, there may be bigger developments over the months that will bring better economic conditions to the project.  And the movement of the coming days can be seen.

[Ziskinberg]

although altcoins follow the movement of bitcoin, they have a different percentage increase in movement, and usually the increase in altcoins is higher than bitcoin. For diversification, I think choosing bitcoin and some of the top altcoins will make our funds more secure and we will get a bigger profit as a result of the increase in altcoins. for me bnb and eth remain my favorite must-have altcoins

Since bitcoin always dominates the crypto market, bitcoin will always be my top investment with its highest allocation. And investing into leading altcoins like ethereum, BNB, and SOL will be good alternatives to diversify my portfolio.

Indeed, that was a good choice of coins.
Even me, I give more share into Bitcoin than altcoins and I don't invest a huge number of coins but just to choose a few of them where I can see huge market potential depending on the trend. I always check on the market chart to make an analysis and to be aware of what really happened. of course, it wasn't me to choose the same coin/s for the whole life, I'd often change it when seeing another opportunity. Sometimes it happens that I only invest in Bitcoin...lol

[TelolettOm]

Yes, IMO< this advice is working enough.
We need to diversify our assets into several investment in order to minimize the risks of losing at all.
However, for me, the biggest percentage should be in Bitcoin. More than others.
And the following by the top coins that exactly will have potential in the future. We may also sometimes need a small investment for new coins if we are ready with the euphoria of the pump and dump tokens. But, this is too risky.
ANd if this is for a long term investment, I will prefer to choose Bitcoin and top coins for portofilo diversification, not the hype one

[nurilham]

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

[tippytoes]

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

Diversifying is the key not to be bankrupt early. As you have no idea which asset will do good in the market, your losses will be minimized if your assets are scattered in various markets. But in doing so, you also need to be cautious which coins are worth to invest, because with thousands of alts that we have, only small percentage can survive in this market. And that means, most of them will not be valuable in the near future. You also need to be updated with their progress so you can sell off before it declines its value.

[lienfaye]

For diversification, I think choosing bitcoin and some of the top altcoins will make our funds more secure and we will get a bigger profit as a result of the increase in altcoins. for me bnb and eth remain my favorite must-have altcoins

Diversifying our investment is often a good choice, as what other user's said its risky to put our eggs in just one basket. But we need to understand and make a strategy on what could be the effective thing to do in order to maximize our profit. Choosing the coins to invest aside from Bitcoin is important. Many alts are existing but not all of them are worth to invest in due to scam or shitcoins. Hence extensive research is needed to find a gem, its advisable to choose an established coins.

[JohnBitCo]

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?
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.

This is the misunderstanding of others. When it's been said that they should diversify, they're going for tons of altcoins that they shouldn't really do. It's okay to diversify whether you only have 2 or 3 altcoins to diversify with.
With that strategy they do, they're going to learn from it and will eventually have to sell the others and will lessen the number of their altcoins and won't expand that much just to make themselves diversified.

Misconception in terms of choosing assets to hold, diversifying to a much lesser numbers of assets may also lessen your stress when the market dumped down that hard, you need to pick good coins to hold while diversifying your money, one the market start favoring you your assets will bring a decent amount of benefits.

More on your understanding of assets that you will hold and how you project the future of your investment.

We need to understand the meaning of diversifying the portfolio. I know a friend of mine who bought 15 - 20 differend altcoins and when i asked him the reason, he told that he was taught of not to put all aggs in one basket. I didn't like his approach as it is difficult to manage and track all these trades at a same time.
Ideally, 4 to 7 coins are enough to trade and for investment. Buying more coins just increases the complexity and not easy to manage, especially for a new trader.

[Smitty Werben Man Jensen]

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?
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.

This is the misunderstanding of others. When it's been said that they should diversify, they're going for tons of altcoins that they shouldn't really do. It's okay to diversify whether you only have 2 or 3 altcoins to diversify with.
With that strategy they do, they're going to learn from it and will eventually have to sell the others and will lessen the number of their altcoins and won't expand that much just to make themselves diversified.

Misconception in terms of choosing assets to hold, diversifying to a much lesser numbers of assets may also lessen your stress when the market dumped down that hard, you need to pick good coins to hold while diversifying your money, one the market start favoring you your assets will bring a decent amount of benefits.

More on your understanding of assets that you will hold and how you project the future of your investment.

We need to understand the meaning of diversifying the portfolio. I know a friend of mine who bought 15 - 20 differend altcoins and when i asked him the reason, he told that he was taught of not to put all aggs in one basket. I didn't like his approach as it is difficult to manage and track all these trades at a same time.
Ideally, 4 to 7 coins are enough to trade and for investment. Buying more coins just increases the complexity and not easy to manage, especially for a new trader.

If you look at what your friends are doing it looks like it's too much to invest in 15-20 altcoins,
it is not easy to manage it all and it may not be a profit that we will get but on the contrary, namely a loss,
4-7 coins is ideal indeed or at most 10 coins

[fullhdpixel]

We need to understand the meaning of diversifying the portfolio. I know a friend of mine who bought 15 - 20 differend altcoins and when i asked him the reason, he told that he was taught of not to put all aggs in one basket. I didn't like his approach as it is difficult to manage and track all these trades at a same time.
Ideally, 4 to 7 coins are enough to trade and for investment. Buying more coins just increases the complexity and not easy to manage, especially for a new trader.

Is your friend didn't know that you know something about crypto? better if he ask for your suggestions than seeking for other people that he didn't know because someone can fool a newbie to invest in the shitcoins. Not putting eggs in one basket doesn't mean you will invest in 20 kinds of cryptos but getting two basket (coins) and divide your egg (money) on it is already understood.

It's okay if you invest more than two coins but as long as these coins are top old coins and not those new meme coins or unpopular coins in the market. Not only that it will be hard to manage but new coins can often make changes and if you cant cope up to the change your gonna lose your coin.

[Hobo66]

Most of the people prefer to use money to buy some of the beneficial coins of different project instead of buying one coin because it is something more beneficial as you know that if one coins go down then there is a chances to lose all the money which you have put into that single coin. diversification or portfolio is a good strategy to increase your profit and decrease your chances of failure.

[Polkeins]

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

Diversifying is the key not to be bankrupt early. As you have no idea which asset will do good in the market, your losses will be minimized if your assets are scattered in various markets. But in doing so, you also need to be cautious which coins are worth to invest, because with thousands of alts that we have, only small percentage can survive in this market. And that means, most of them will not be valuable in the near future. You also need to be updated with their progress so you can sell off before it declines its value.

Diversification really helps to reduce the risks, but do not forget that over time in a crypto, any coins, except Bitcoin and ETH sooner or later begin to fall in price and yield the place to others.
For example, Litecoin, Monero, Bitcoin Cash 3 or 4 years ago were in the top ten coins in crypto but now they are somewhere in the third ten.
This is not counting other less well-known coins that fell even lower. I don't think that it depends from their progress or something. It's like as in surfing.
Good coins "catch a wave" and grow greatly in price, and those who do not have time to do this disappears on the next bear market.

[Etranger]

We indeed need to diversify our portfolio in crypto so that we don't get hung up on just one crypto. We know that there is a lot of cryptos that can be invested in and that there are many good prospects. the thing that must be considered in diversifying our portfolio is to focus on target assets and also understand the possible risks that exist, what I mean here is to choose crypto that is appropriate and also has good prospects so that we can manage it optimally. but here we have to be more careful in choosing crypto because it will have an impact on our assets in the future.

I am convinced that diversification is not only about investing in different activities, but also about taking into account the term of investment, which is different for different coins. Thus, if you are stuck in a coin for a long time, you can cash out other assets and invest them in a more promising option. That is why diversification must meet the criterion of investment term - for some coins it may be a year, for some - a few months, and for some - just days.

[Raymond Gary]

Diversification is good when you're into any crypto investment.
How do you diversify your portfolios ?,
For me I give attention and get more exposure to the projects I believe so much in,  like Bitcoin having the largest share base on percentage share 40%,15%, 10% ,5%, to the list.
then second thing I do is , if it happens that  we futunately finds ourselves in a Bull market , I use fear and greed index to reduce my exposure to Bitcoin and increase my exposure to altcoins and from altcoins to stable coins. Why I do this is most times I have been exposed to one or project and waiting for almost my whole life for the coin to rise but diversifying will give you edge over the market.

[developeron29]

I agree on diverifying
Just look at how AXS (Axie infinity) which is just an altcoin
returned 1000% returns in just a year

https://everycoinprice.com/?symbol=AXS&interval=1year&exchange=0


Looking at this, makes me think, diversifying my portfolio and invest returns from altcoins to stack more sats