What is your diversification strategy?

[franky1]

Are you also figuring out which could be the best investment to have while there is a recession?

I have no diversification but all in crypto from BTC to some altcoins kept. Not Ideal probably. I quit the stock market, it would have been profitable if I have invested in oil and crude companies. Would it be too late to invest in it?

most commodity investors are looking at whats happening in autumn 2023 to determine what to do now. as prices for winter 2022 were already factored in in spring/summer 2022

never think about investments in commodities from the point of view of the consumers needs this month or consumer reactions this month. be 6-12 months ahead of that
 

taking a look at industries such as car manufacturing..
back in spring .. tesla seen the recession and knew having spare fiat or just stored asset investment money hanging around doing nothing was being wasted sat there..
because they knew car parts would cost more in 2023 due to higher costs of material and shipping as of summer 2022-2023.

many industries already liquidated investments got the cashflow and went on a buying spree of parts/materials while cheap in the spring. thus stock piled material for summer 2022-2023

any cash they then earn summer-winter 2022 from product sales they can put back into investments again

oil was the same. they seen the impending winter. and already pre-bought oil in summer for the winter.

yes industries do not buy produce on the day they need it.

same with food/agriculture.
retailers dont just buy at harvest. they already preplan the harvest need at the seed sewing/planting season
if they see that people will want more food in winter. they go to farms before seeds are even laid to do deals to get enough produce for winter.

so when trying to predict impacts of winter for the consumer/citizen. industries have already priced this winter into the market in spring/summer

[1715481858]

1715481858

[pgbit]

It is very important to diversify your investment. Invest in different categories, invest in different things, invest in different cryptos.  Because by investing in different cryptocurrency projects, even if one project fails, your entire investment will not be lost.Diversify your portfolio. so that 60% of your investment is in top cryptos.which have been in the market for a long time۔For example btc, ethereum, xrp, solana, dot, mana etc. you should buy more in them.Because these cryptos will be able to give very good returns in future.You can then invest 20 percent in risky cryptos where there is risk.Like Shiba Inu, Baby Doge. should not put too much money in such coins as they can give you more profit and there is risk of loss.Out of the remaining twenty percent investment, you can invest 10 percent in Metaverse tokens because people are very bullish about Metaverse۔The last 10 percent are for new projects or new tokens that have been launched recently.If they are successful, you can get very good profit.

[BobK71]

Everyone's strategy is going to be different because of many many reasons.

But how does it fit into your portfolio? Are you taking profits and moving it to other sectors? Are you shaving some profits into metals? Bonds / TIPS?  Real estate?

IMHO BTC tracks stocks to close to call it diversified in my minds eye but do you have stocks? Maybe into a ROTH IRA or traditional (tax deduction).

How does BTC play into your balance or diversification?

What does your pie chart look like?

Initially I invested in my local stock market but I was not satisfied there. In that stock market there is only the investment of the people of my country and there is a small part of the international investment. But I was looking for a platform where I can get the whole world on one platform. In this case I got Forex first but found cryptocurrency like Bitcoin better. Before I invested in Bitcoin I was well aware of its history. Currently I am interested in investing 70 percent of my investment in crypto. I think it will diversify my investment.

[Don Pedro Dinero]

Well, regarding diversification, I would recommend to everyone who owns real estate, at least one house to live in themselves, unless they are very young or plan to move around a lot, so it would be better to rent.

For Kiyosaki it would be a liability but it is very debatable, and paying the mortgage, every month that passes is a % more yours. Having a day tomorrow where you can live without having to pay a mortgage or rent will alleviate your finances a lot.

Apart from that, I obviously have bitcoin and some investment funds, as well as cash for unforeseen events.

Diversification does not mean having 17 different financial assets. You can have few but good ones, and an investment fund is already diversified.

As for cryptocurrencies, I don't diversify. I only have bitcoin. Here I remember someone saying that diversification is a protection against ignorance. I'd rather have the best currency than diversify to see if I hit the lottery.

[LogitechMouse]

I'm at my mid-20's that's why I can risk more money still but maybe in the next 2-3 years or starting next year, I'll slowly move some of my funds into stocks that are giving dividends annually. In that way, it will be safer and aside from that, I will receive passive income annually thru dividends.

As of now I don't know the exact numbers, but based on my estimation, I think 80% of my total assets are in crypto, 15% are in the stock market and only 5% in another investment. Most of my crypto portfolio are in BTC and ADA but I will sell that ADA and buy some dividend stocks.

I'm thinking that I might be a bit safer when I'm nearing to reach 30 years old. Are people using the same strategy here that as you hit 30's or near 30's, you will invest into safer assets?

[spectre71]

It is very important to diversify your investment. Invest in different categories, invest in different things, invest in different cryptos.  Because by investing in different cryptocurrency projects, even if one project fails, your entire investment will not be lost.Diversify your portfolio. so that 60% of your investment is in top cryptos.which have been in the market for a long time۔For example btc, ethereum, xrp, solana, dot, mana etc. you should buy more in them.Because these cryptos will be able to give very good returns in future.You can then invest 20 percent in risky cryptos where there is risk.Like Shiba Inu, Baby Doge. should not put too much money in such coins as they can give you more profit and there is risk of loss.Out of the remaining twenty percent investment, you can invest 10 percent in Metaverse tokens because people are very bullish about Metaverse۔The last 10 percent are for new projects or new tokens that have been launched recently.If they are successful, you can get very good profit.

In my minds eye this isn't remotely diverse. All in on one sector, no beano 

[lucates]

When I saw this thread I thought it would be another one of those "you need to buy altcoins to diversify your bitcoin" threads. This is an improvement OP! Buying stocks is, contrary to buying altcoins, a real diversification.


That said, I don't have a diversification strategy, I'm all in bitcoin.
My chart would look like this:
80% bitcoin
5% money in the bank in various currencies
15% cash.
I don't need to buy other things. Change my mind!

I heard somewhere that "crypto investors should realise that one man and one tweet can derail their life savings", so don't follow or change your mind according to other peoples plans. Just go with your own plan but inspired by others. Limit your crypto investment risks so don't regret it later.

[Fundamentals Of]

In crypto, I have at least 5 coins. Of course, the biggest portion of this crypto portfolio belongs to Bitcoin. For me that's a must to every crypto investor because we value the safety of our portfolio. There is nothing safer in the crypto market than Bitcoin. Outside crypto, I also have a few business venture investments. I am already staying away from stocks but have little investments in gold and silver. My diversification strategy is very simple. It's because I'm not a big-time investor.

[Davidvictorson]

Last year was wild for me because I did took some risk on some things like Doge and Shib, when I pulled out my profits I put them in ETH and BTC mainly. Since the, I have been focus on building a balanced portfolio - Like 50% crypto with a ratio of 30:20 for BTC and ETH, 20% real estate. And 30% in some other side hustles. I dabble into other coins occasionally but I just go there to take profit.

[hyudien]

How does BTC play into your balance or diversification?

What does your pie chart look like?

So far I only trust Bitcoin for investment. Bonds, gold, and stocks available have not been able to provide what I was looking for, namely freedom of government control. For some reason when I got to know Bitcoin I knew that my investment character really matched what Bitcoin had to offer. Of course, it sounds selfish and does not trust what the government provides. I found many stock markets, but the investment atmosphere that kept me believing in Bitcoin grew. So any risk on Bitcoin as I have accepted with pleasure.

[BALIK]

But how does it fit into your portfolio? Are you taking profits and moving it to other sectors? Are you shaving some profits into metals? Bonds / TIPS?  Real estate?

Yes, of course. Previously, I also took profits partly to move to some other fields and here I chose to invest in a small local business and let my wife manage. Besides, I am waiting for an upcoming bull season, when I get a significant profit I will continue to extract a part of my profit, my target this time will be real estate or gold. for me, diversification is absolutely necessary because we cannot be certain about the future, although bitcoin is still my favorite investment, simply because it used to give me huge returns.

[Inwestour]

So far I only trust Bitcoin for investment. Bonds, gold, and stocks available have not been able to provide what I was looking for, namely freedom of government control. For some reason when I got to know Bitcoin I knew that my investment character really matched what Bitcoin had to offer. Of course, it sounds selfish and does not trust what the government provides. I found many stock markets, but the investment atmosphere that kept me believing in Bitcoin grew. So any risk on Bitcoin as I have accepted with pleasure.

I would like to diversify into other assets, I like precious metals, maybe I would buy some stocks, or even real estate, but the reality is that my small funds now can allowed me to invest in only one asset, so I chose bitcoin, because it is easy to buy and store, and it shows a very good momentum in price growth.

[sunsilk]

I would like to diversify into other assets, I like precious metals, maybe I would buy some stocks, or even real estate, but the reality is that my small funds now can allowed me to invest in only one asset, so I chose bitcoin, because it is easy to buy and store, and it shows a very good momentum in price growth.

That's how I want to diversify too but analyzing the market for stocks, it's not for me at least for now but maybe in the future I'll be encouraged and attracted to it.

Many talks about real estate and just how we talk about bitcoin, it's on my list. As you deal with the problem of having little capital, some of the strategies that I've seen is about having a mortgage and have it rented so, that rental income will be the ones that should pay for its own monthly fee.

Although this is still requiring a hefty amount of money depending on the property you'll get plus the possible renovations that you need to have.

The other assets that I'm having on my list is about those cards like NBA cards, pokemon cards, well, I'm not an expert there but I see that there's really a market on it.

[LittleBitFunny]

As for cryptocurrencies, I don't diversify. I only have bitcoin. Here I remember someone saying that diversification is a protection against ignorance. I'd rather have the best currency than diversify to see if I hit the lottery.

The cryptocurrency market can be said to be quite different from the rest. In crypto, diversification is only true when you invest in altcoins, but with bitcoin I think that would no longer be correct, as the whole market is governed and dependent on bitcoin. In the event that bitcoin drops, then also no altcoin can make you profit, even many altcoins will die and cause you even more losses. Investing in altcoins we are simply trying to generate the larger returns we are looking for rather than diversifying to secure our investment.

[Franctoshi]

Everyone's strategy is going to be different because of many many reasons.

But how does it fit into your portfolio? Are you taking profits and moving it to other sectors? Are you shaving some profits into metals? Bonds / TIPS?  Real estate?

IMHO BTC tracks stocks to close to call it diversified in my minds eye but do you have stocks? Maybe into a ROTH IRA or traditional (tax deduction).

How does BTC play into your balance or diversification?

What does your pie chart look like?

Diversification is key to getting protected due to uncertainty that may arise a long the line, because if one puts his investment only on one particular Asset and not diversify ,if eventually something bad happens to that very asset, that could lead one to loosing all his investment in just a twinkling of an eye, but if we spread our investment to some assets class then when one asset crumbles you can hold onto the other. Therefore, Aside having majority of investment in Bitcoin, I love and invest in Gold and Real estate and this is base on what I can afford to loose.

[sulendra12]

Everyone's strategy is going to be different because of many many reasons.
But how does it fit into your portfolio? Are you taking profits and moving it to other sectors? Are you shaving some profits into metals? Bonds / TIPS?  Real estate?

Yea, whenever I got profit from somewhere I can just put partial amount of that profit into my portfolio either Crypto, gold, stock or whatever investment instrument I want.
My portfolio is Cryptocurrency(Bitcoin and Altcoin) for 50%, Stock market for 20% and gold 30%.

Gold is mainly for my future investment and savings just in case for the urgent backup. I'm pretty proud with what I have currently, as I can circulate the money for everything I need either for investment or my own needs.

[nullama]

I was looking at how banks are diversifying their reserves, and found out that now banks will be able to allocate one percent of their reserves in Bitcoin:

Bank for International Settlements to allow banks to keep 1% of reserves in Bitcoin

“The large exposure rules of the Basel Framework are not designed to capture large exposures to an asset type, but to individual counterparties or groups of connected counterparties. This would imply, for example, no large exposure limits on cryptoasset where there is no counterparty, such as Bitcoin.”

[Artem Sereda]

Bitcoin affects my balance only indirectly. I'm not a very big expert. Therefore, I simply bought bitcoin for a certain amount and invested it. Now I just watch how the bitcoin exchange rate changes. In future plans, the profit from the cryptocurrency will be invested in even more interesting projects/startups/nft.

[Despairo]

I will say any users who diversify their investment to altcoins are stupid because altcoins price are following Bitcoin price, so if you're diversify to altcoins you're not diversify anything. If anyone want to diversify their investment, make sure you're diversify to other sectors, not in cryptocurrencies again, you can choose stock, gold, silver, real estate and many more.

But to be honest I invest too much on Bitcoin and I don't regret about it, I think Bitcoin have a bright future and I'm ready to accept the risk.

[livingfree]

Bitcoin affects my balance only indirectly. I'm not a very big expert. Therefore, I simply bought bitcoin for a certain amount and invested it. Now I just watch how the bitcoin exchange rate changes. In future plans, the profit from the cryptocurrency will be invested in even more interesting projects/startups/nft.

I'm not sure by the time that you'll able to make with your bitcoin holdings, NFTs are still a thing. It's a good idea that you've mentioned startups because that's where the last thing that I want to diversify my investments.

I'm seeing a lot of startups that are waiting and looking for angel investors but I don't want to get on it as soon as possible. I want to do it slowly but surely and the profit that I'll also make from my bitcoin holdings will be going a portion of it there.

It's like owning a part of a company but before doing that, I'll make sure that I've got a good and focused partner.