Balancing Financial security and Bitcoin Accumulation

[sotelorene]

[edited out]

You are right. but I have my opinion, if someone really wants to diversify their assets and is already investing in Bitcoin regularly following the DCA method, then investing in Bitcoin in another way can also be done as diversification. For example, let's say he is investing $200 weekly in Bitcoin from his discretionary income. Suddenly his income increases. Then if he thinks that he will invest the rest of the money somewhere else, then he can buy more BTC for long-term holding when the price of Bitcoin will be DIP. He will create a separate fund where he will deposit his extra income and when he feels that the price of Bitcoin has decreased comparatively, he will invest and hold as much Bitcoin as possible. In addition, his regular Bitcoin investment will continue. This decision can be better than any other decision. Because investing in Bitcoin will always give much more profit compared to any other investment.Bitcoin is a much more profitable option for future security.

There is nothing wrong with a guy who might choose to set aside other funds for buying the dip.  That is not really called diversification, even though it is employing more than one method for accumulating bitcoin that might result in accumulating more cash if the BTC price does not dip.

Let''s say that we have a guy with a $50k per year income, and he is investing $200 per week into bitcoin.  That would be $10k per year and that would be right around 25% of the guys income going into bitcoin investment.  Maybe if he already had been buying bitcoin for a full year, then he has $10k worth of bitcoin and whatever  amount that his bitcoin holdings had appreciated during the time that he had been accumulating it.  There are websites that we can look up the numbers to make sure our hypothetical is realistic... so maybe this guy has 0.14507 BTC after one year of $200 per week.

So then how much is the raise? Did he go from $50k to $60k or maybe from $50k to $55k?  The extra amount or some proportion of the extra amount could be set aside for buying the dip, as you mentioned. I am not sure if there is any compelling case to be made for doing it or not doing it (except that in the case that I described, the guy is already allocating a pretty high percentage of his income to bitcoin investing.. and so hopefully he has already established an emergency fund, or maybe he might need to spend some of his income or the bonus money to shore up his emergency funds).  No matter the case, bitcoin investors can decide these kinds of balances of their income and their extra income.

I am now clear on the subject. I initially thought that even if you invest in different ways, it is considered as diversification of assets. However, the balance between income and investment that you mentioned is really very important. Because if there is no balance, if there is no understanding about fund management, then there is a possibility of any loss in the future. And the most important thing that I think is to create a proper reserve fund and emergency fund of investing  in Bitcoin.

The concepts of assets diversification is quite self explanatory though a lot of people understand it differently but just as it implies it entails roll out your investment around difference and unrelated asset classes, revolving around Bitcoin is never diversification, revolving around Bitcoin and other coins is not diversification either but when you are revolving around Bitcoin and others such as real estate, stocks, or selling of commodities it can be considered as diversification because they entirely not related.

I disagree with you, diversifying into crypto after investing in Bitcoin is still diversification but the thing is, it is not advisable to diversify into crypto again when one have already invest in Bitcoin and In the crypto space the only reliable coin is Bitcoin so Investing in any other coin is a more like a waste of time because they are not reliable and can easily mess someone up. Real estate and Land is a very good investment because  they are asset that bring value, not just value but great value after a while and there is no too much factor or barrier.

[Stormisover]

[edited out]

You are right. but I have my opinion, if someone really wants to diversify their assets and is already investing in Bitcoin regularly following the DCA method, then investing in Bitcoin in another way can also be done as diversification. For example, let's say he is investing $200 weekly in Bitcoin from his discretionary income. Suddenly his income increases. Then if he thinks that he will invest the rest of the money somewhere else, then he can buy more BTC for long-term holding when the price of Bitcoin will be DIP. He will create a separate fund where he will deposit his extra income and when he feels that the price of Bitcoin has decreased comparatively, he will invest and hold as much Bitcoin as possible. In addition, his regular Bitcoin investment will continue. This decision can be better than any other decision. Because investing in Bitcoin will always give much more profit compared to any other investment.Bitcoin is a much more profitable option for future security.

There is nothing wrong with a guy who might choose to set aside other funds for buying the dip.  That is not really called diversification, even though it is employing more than one method for accumulating bitcoin that might result in accumulating more cash if the BTC price does not dip.

Let''s say that we have a guy with a $50k per year income, and he is investing $200 per week into bitcoin.  That would be $10k per year and that would be right around 25% of the guys income going into bitcoin investment.  Maybe if he already had been buying bitcoin for a full year, then he has $10k worth of bitcoin and whatever  amount that his bitcoin holdings had appreciated during the time that he had been accumulating it.  There are websites that we can look up the numbers to make sure our hypothetical is realistic... so maybe this guy has 0.14507 BTC after one year of $200 per week.

So then how much is the raise? Did he go from $50k to $60k or maybe from $50k to $55k?  The extra amount or some proportion of the extra amount could be set aside for buying the dip, as you mentioned. I am not sure if there is any compelling case to be made for doing it or not doing it (except that in the case that I described, the guy is already allocating a pretty high percentage of his income to bitcoin investing.. and so hopefully he has already established an emergency fund, or maybe he might need to spend some of his income or the bonus money to shore up his emergency funds).  No matter the case, bitcoin investors can decide these kinds of balances of their income and their extra income.

I am now clear on the subject. I initially thought that even if you invest in different ways, it is considered as diversification of assets. However, the balance between income and investment that you mentioned is really very important. Because if there is no balance, if there is no understanding about fund management, then there is a possibility of any loss in the future. And the most important thing that I think is to create a proper reserve fund and emergency fund of investing  in Bitcoin.

The concepts of assets diversification is quite self explanatory though a lot of people understand it differently but just as it implies it entails roll out your investment around difference and unrelated asset classes, revolving around Bitcoin is never diversification, revolving around Bitcoin and other coins is not diversification either but when you are revolving around Bitcoin and others such as real estate, stocks, or selling of commodities it can be considered as diversification because they entirely not related.

I disagree with you, diversifying into crypto after investing in Bitcoin is still diversification but the thing is, it is not advisable to diversify into crypto again when one have already invest in Bitcoin and In the crypto space the only reliable coin is Bitcoin so Investing in any other coin is a more like a waste of time because they are not reliable and can easily mess someone up. Real estate and Land is a very good investment because  they are asset that bring value, not just value but great value after a while and there is no too much factor or barrier.

I disagree with you too, you are confused maybe you don't actually know the real meaning of diversification of assets and what you are narrating can be misleading, the discussion about diversification to be spreading your investment across different assets has been long and overly discussed in majority of the Bitcoin investment threads, you can do more your reading and research in order for you to know what you are talking about because I know for sure we can learn from each other and one reason while we are all here in this Bitcoin community. Bitcoin to other other coins is never to be called diversification.

[Ruttoshi]

The concepts of assets diversification is quite self explanatory though a lot of people understand it differently but just as it implies it entails roll out your investment around difference and unrelated asset classes, revolving around Bitcoin is never diversification, revolving around Bitcoin and other coins is not diversification either but when you are revolving around Bitcoin and others such as real estate, stocks, or selling of commodities it can be considered as diversification because they entirely not related.

I disagree with you, diversifying into crypto after investing in Bitcoin is still diversification but the thing is, it is not advisable to diversify into crypto again when one have already invest in Bitcoin and In the crypto space the only reliable coin is Bitcoin so Investing in any other coin is a more like a waste of time because they are not reliable and can easily mess someone up. Real estate and Land is a very good investment because  they are asset that bring value, not just value but great value after a while and there is no too much factor or barrier.

Stormisover is correct. When you are investing into bitcoin and start putting part of that money on shitcoins is not diversification. Diversification is done for by spreading your funds into various assets of different classes and not of the of the same class. The reason is because it's for security and reduces the risk of only investing in one asset.

If you invest in bitcoin and shitcoins, when bitcoin dips, all your shitcoins goes down with bitcoin increasing your risk. But if you invest in bitcoin and stock, if bitcoin price dips, stock might not dip or rather the price goe up. Diversification is to balance and manage risk.

[Rockson1]

[edited out]

You are right. but I have my opinion, if someone really wants to diversify their assets and is already investing in Bitcoin regularly following the DCA method, then investing in Bitcoin in another way can also be done as diversification. For example, let's say he is investing $200 weekly in Bitcoin from his discretionary income. Suddenly his income increases. Then if he thinks that he will invest the rest of the money somewhere else, then he can buy more BTC for long-term holding when the price of Bitcoin will be DIP. He will create a separate fund where he will deposit his extra income and when he feels that the price of Bitcoin has decreased comparatively, he will invest and hold as much Bitcoin as possible. In addition, his regular Bitcoin investment will continue. This decision can be better than any other decision. Because investing in Bitcoin will always give much more profit compared to any other investment.Bitcoin is a much more profitable option for future security.

There is nothing wrong with a guy who might choose to set aside other funds for buying the dip.  That is not really called diversification, even though it is employing more than one method for accumulating bitcoin that might result in accumulating more cash if the BTC price does not dip.

Let''s say that we have a guy with a $50k per year income, and he is investing $200 per week into bitcoin.  That would be $10k per year and that would be right around 25% of the guys income going into bitcoin investment.  Maybe if he already had been buying bitcoin for a full year, then he has $10k worth of bitcoin and whatever  amount that his bitcoin holdings had appreciated during the time that he had been accumulating it.  There are websites that we can look up the numbers to make sure our hypothetical is realistic... so maybe this guy has 0.14507 BTC after one year of $200 per week.

So then how much is the raise? Did he go from $50k to $60k or maybe from $50k to $55k?  The extra amount or some proportion of the extra amount could be set aside for buying the dip, as you mentioned. I am not sure if there is any compelling case to be made for doing it or not doing it (except that in the case that I described, the guy is already allocating a pretty high percentage of his income to bitcoin investing.. and so hopefully he has already established an emergency fund, or maybe he might need to spend some of his income or the bonus money to shore up his emergency funds).  No matter the case, bitcoin investors can decide these kinds of balances of their income and their extra income.

I am now clear on the subject. I initially thought that even if you invest in different ways, it is considered as diversification of assets. However, the balance between income and investment that you mentioned is really very important. Because if there is no balance, if there is no understanding about fund management, then there is a possibility of any loss in the future. And the most important thing that I think is to create a proper reserve fund and emergency fund of investing  in Bitcoin.

The concepts of assets diversification is quite self explanatory though a lot of people understand it differently but just as it implies it entails roll out your investment around difference and unrelated asset classes, revolving around Bitcoin is never diversification, revolving around Bitcoin and other coins is not diversification either but when you are revolving around Bitcoin and others such as real estate, stocks, or selling of commodities it can be considered as diversification because they entirely not related.

I disagree with you, diversifying into crypto after investing in Bitcoin is still diversification but the thing is, it is not advisable to diversify into crypto again when one have already invest in Bitcoin and In the crypto space the only reliable coin is Bitcoin so Investing in any other coin is a more like a waste of time because they are not reliable and can easily mess someone up. Real estate and Land is a very good investment because  they are asset that bring value, not just value but great value after a while and there is no too much factor or barrier.

I disagree with you too, you are confused maybe you don't actually know the real meaning of diversification of assets and what you are narrating can be misleading, the discussion about diversification to be spreading your investment across different assets has been long and overly discussed in majority of the Bitcoin investment threads, you can do more your reading and research in order for you to know what you are talking about because I know for sure we can learn from each other and one reason while we are all here in this Bitcoin community. Bitcoin to other other coins is never to be called diversification.

you got all the explanation you made about diversification right, if investors does not shift their investor or lets say spread there investment outside the digital asset zone then that can not actually be called diversification, diversification is when invest to invest in somethig those asset you listed that has nothing to do with the investment they already had, shitcoin and other random coin out there has no good to do for anybody although this statement might be out of context but I have to say it so that passer by will understand that and run very far for their safety and safety of their finances, in regards to learning, it is an unstoppable process hence we are open to it at all time.

[Nightwatchmare]

The concepts of assets diversification is quite self explanatory though a lot of people understand it differently but just as it implies it entails roll out your investment around difference and unrelated asset classes, revolving around Bitcoin is never diversification, revolving around Bitcoin and other coins is not diversification either but when you are revolving around Bitcoin and others such as real estate, stocks, or selling of commodities it can be considered as diversification because they entirely not related.

I disagree with you, diversifying into crypto after investing in Bitcoin is still diversification but the thing is, it is not advisable to diversify into crypto again when one have already invest in Bitcoin and In the crypto space the only reliable coin is Bitcoin so Investing in any other coin is a more like a waste of time because they are not reliable and can easily mess someone up. Real estate and Land is a very good investment because  they are asset that bring value, not just value but great value after a while and there is no too much factor or barrier.

Stormisover is correct. When you are investing into bitcoin and start putting part of that money on shitcoins is not diversification. Diversification is done for by spreading your funds into various assets of different classes and not of the of the same class. The reason is because it's for security and reduces the risk of only investing in one asset.

If you invest in bitcoin and shitcoins, when bitcoin dips, all your shitcoins goes down with bitcoin increasing your risk. But if you invest in bitcoin and stock, if bitcoin price dips, stock might not dip or rather the price goe up. Diversification is to balance and manage risk.

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

[Mehmet69]

It is also true that focusing more on buying in DIP can reduce the budget allocated for buying in DCA. Because you will then start depositing more and more money in the fund reserved for buying in DIP. If you are really doing this, I want to know how reasonable it is and is it a good plan for investors to do this?
Initially, I think this is a barrier to growing a Bitcoin portfolio.
I think those who are buying Bitcoin in DCA should be more cautious about their Bitcoin purchases and buy aggressively by increasing their DCA budget as much as possible without reducing it.
And later, when your emergency fund is healthy enough, then reduce the amount of money deposited there and create a new fund from there that can be used to buy Bitcoin later if it comes to DIP.

Yes, you are right. If someone gets aggressive when they get into the DIP market while doing DCA, it will take them longer to build their portfolio.

DCA is about building your portfolio by buying a certain amount of money at a certain time. In this case, you need to be careful not to waste the DCA cycle to buy DIP. However, you can gradually strengthen your portfolio by increasing the amount of money in DCA. Also, you need to create an emergency fund to continue investing in DCA. This will give you financial backup in case of emergencies and buying DIP from time to time.

If you can keep your DCA and emergency fund as per the rules, your Bitcoin portfolio will also strengthen over time.

[JayJuanGee]

[edited out]

The point that @JayJuanGee Sir has emphasized is that if you increase your asset reserve to buy dips then it is right. He has agreed to keep a separate fund along with regular Bitcoin accumulation so that we do not miss the dips event in the future. The amount of that fund will be determined by you and based on your income. We should only set a target for Bitcoin. Some may follow a risky approach and try to diversify the portfolio which is a risky way and has the possibility of losing money.

I am recognizing that some guys might make a separate account for buying dips, and I am not necessarily proclaiming that having such separate account is a better thing to do, even though it might make sense for some guys if they do not overdo it, such as if they were to hold back 10% to 20% of whatever they are buying in bitcoin regularly for buying dips, that might be o.k., but the dip might not come, so there are trade offs when guys purposefully choose to hold back money for dips that might not end up happening.

I know of some Bitcoin investors who are so careful about Bitcoin accumulation that they reserve another fund along with emergency fund/floating cash so that they can buy aggressively during dips period and this is to increase the financial capacity of an investor and manage the funds wisely which can make him a wealthy investor in the long run.

It is not necessarily a good practice to hold a lot of value back for dips that might not happen.. even if some guys have done it and have had some success with those buying on dip funds.  There are trade offs, and if the guy is new to bitcoin or he does not have a lot of discretionary income, then it may well not be a good idea for him to be holding back very much for buying dips that might not happen, instead of staying focused on ongoing, persistent, consistent, regular and even potentially aggressive buying of bitcoin and the building up of his emergency funds and other aspects of his cashflow management system/practices so that he can figure out an appropriate level of aggressiveness balance in regards to his regular buys, especially when guys have so little discretionary income that they might not even be able to afford the buying of $100 in bitcoin per week, and then they are going to want to divide that in to funds that they set aside for buying on dips that might not happen,... makes little sense for the low discretionary income folks and the guys who are in their first year or two of accumulating bitcoin to be engaging in such practices of holding money back to buy on dips that might not happen.

The concepts of assets diversification is quite self explanatory though a lot of people understand it differently but just as it implies it entails roll out your investment around difference and unrelated asset classes, revolving around Bitcoin is never diversification, revolving around Bitcoin and other coins is not diversification either but when you are revolving around Bitcoin and others such as real estate, stocks, or selling of commodities it can be considered as diversification because they entirely not related.

I disagree with you, diversifying into crypto after investing in Bitcoin is still diversification but the thing is, it is not advisable to diversify into crypto again when one have already invest in Bitcoin and In the crypto space the only reliable coin is Bitcoin so Investing in any other coin is a more like a waste of time because they are not reliable and can easily mess someone up. Real estate and Land is a very good investment because  they are asset that bring value, not just value but great value after a while and there is no too much factor or barrier.

Stormisover is correct. When you are investing into bitcoin and start putting part of that money on shitcoins is not diversification. Diversification is done for by spreading your funds into various assets of different classes and not of the of the same class. The reason is because it's for security and reduces the risk of only investing in one asset.

If you invest in bitcoin and shitcoins, when bitcoin dips, all your shitcoins goes down with bitcoin increasing your risk. But if you invest in bitcoin and stock, if bitcoin price dips, stock might not dip or rather the price goe up. Diversification is to balance and manage risk.

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

If you diversify investing across asset classes, you are not necessarily gaining income from those investments until maybe later in your investment journey, so in your early years of investing you may well be building, and perhaps you start with only bitcoin and cash, and then perhaps after several years of investing and building up your bitcoin stash and solidifying your cashflow management  including your various back up funds, then you might thereafter add some other investment category, such as stocks, bonds, real estate, commodities or cash equivalents... and maybe sometimes you might even get involved in business ownership as a form of diversification... Shitcoins are not considered to be diversified since they are largely correlated with bitcoin, even though there are several shitcoins that are maturing in their field which might have some potential that some of them might not be correlated with bitcoin, so it seems it is not necessary to get involved in shitcoins, yet some people might choose to do so, and hopefully they are able to limit their involvement in shitcoins to less than 10% of the size of their bitcoin investment, yet surely some people like to gamble, so they have to figure out their own ways of balancing out how they might diversify out of bitcoin  and if it is even potentially helpful to their finances and/or psychology.

[Achalugo BTC]

It is not necessarily a good practice to hold a lot of value back for dips that might not happen.. even if some guys have done it and have had some success with those buying on dip funds.  There are trade offs, and if the guy is new to bitcoin or he does not have a lot of discretionary income, then it may well not be a good idea for him to be holding back very much for buying dips that might not happen, instead of staying focused on ongoing, persistent, consistent, regular and even potentially aggressive buying of bitcoin and the building up of his emergency funds and other aspects of his cashflow management system/practices so that he can figure out an appropriate level of aggressiveness balance in regards to his regular buys, especially when guys have so little discretionary income that they might not even be able to afford the buying of $100 in bitcoin per week, and then they are going to want to divide that in to funds that they set aside for buying on dips that might not happen,... makes little sense for the low discretionary income folks and the guys who are in their first year or two of accumulating bitcoin to be engaging in such practices of holding money back to buy on dips that might not happen.

You are very correct, as this method helps them to develop sustainable investment technique and also be able to balance the risk, instead off holding back the funds to buy dips that is not sure to happen due to how market fluctuates.

And, also those who are new to Bitcoin or those with limited discretionary fund, can achieve their financial aim by practicing steady buying consistency, patience etc. For this can help them progress towards their objectives and will also help them to navigate market fluctuations.

[IceLincoln]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

[icebar]

It is not necessarily a good practice to hold a lot of value back for dips that might not happen.. even if some guys have done it and have had some success with those buying on dip funds.  There are trade offs, and if the guy is new to bitcoin or he does not have a lot of discretionary income, then it may well not be a good idea for him to be holding back very much for buying dips that might not happen, instead of staying focused on ongoing, persistent, consistent, regular and even potentially aggressive buying of bitcoin and the building up of his emergency funds and other aspects of his cashflow management system/practices so that he can figure out an appropriate level of aggressiveness balance in regards to his regular buys, especially when guys have so little discretionary income that they might not even be able to afford the buying of $100 in bitcoin per week, and then they are going to want to divide that in to funds that they set aside for buying on dips that might not happen,... makes little sense for the low discretionary income folks and the guys who are in their first year or two of accumulating bitcoin to be engaging in such practices of holding money back to buy on dips that might not happen.

Yes, it is unknown when the price of Bitcoin will drop. If money is saved for a long time for that dip, then there is a high possibility of spending that money, especially for people with low incomes. That is why it is better to invest in Bitcoin regularly with a portion of your discretionary income instead of waiting for the dip. Even if you expect a dip, you may not get the Bitcoin dip you expect, rather waiting for the dip is tantamount to hindering your investment. Especially for new investors, if you wait for the dip, your decision may change at any time. That is why I think that if you manage an emergency fund in addition to purchasing Bitcoin continuously with a portion of your discretionary income, then that investment will be long-lasting, and it will be easier to increase your Bitcoin stack. It is wiser to complete that task now rather than leaving it for later. It is better to invest in Bitcoin now rather than waiting for the dip.

[Silikiem]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Very true, the controversy surrounding this issue of diversification have long been discussed in this thread and many other bitcoin threads and some folks seem not to understand what this diversification is all about especially when you consider diversification in the crypto space. The reason for diversification is to be able to manage risk especially when you’re already into a certain kind of investment let’s say bitcoin investment and generally we can all agree that bitcoin generally belongs to the cryptocurrency space. As a bitcoin investor, it’s never advisable to diversify into another cryptocurrency space let’s say ethereum, Solana and what have you because they are generally regarded as cryptocurrencies. Diversification have to be in a different space of investment so that you can be able to mitigate risk and reduce some loss incase there’s a loss in one space, the other space should be able to cover up for the losses. And In this case, moving from bitcoin to another shitcoins won’t help you to reduce loss or mitigate your risk, rather you’re increasing your chances of incurring more losses and risking your investments.
Note that diversification does not guarantee profit making, neither does it protect you from every losses, but a well strategized and planned diversification can help to reduce volatility in market/investments and is capable of producing a more stable return over time.

[ZeroVinsonN]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

[JayJuanGee]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

Frequently, it is better to say what you are talking about rather than using a vague, misleading and even deceptive term such as crypotcurrency if you are talking about bitcoin.

Many times shitcoiners and even people who are engaging in vague, misleading and deceptive discussions are referring to cryptocurrencies and not specifying the extent to which they are talking about bitcoin, some shitcoins and/or both.

You are correct that shitcoins are quite correlated to bitcoin, so it would be erroneous to consider that buying shitcoins provides any kind of meaningful diversification from bitcoin, since an overwhelming majority of shitcoins could not survive without bitcoin.   Usually the idea of diversification means to attempt to protect from volatility, so there are attempts to diversify into uncorrelated assets or even assets that are within differing fields, which is not the case between bitcoin and various shitcoins.

Personally, I would suggest to completely stay away from shitcoins, yet surely some people are curious and they cannot help themselves, and they may even be inclined to trade and/or gamble with shitcoins, and even if they consider shitcoins as an investment (which is likely another BIG mistake) then they should limit their exposure to shitcoins to be no more than 10% the size of their exposure to bitcoin. 

If you are not trying to mislead or deceive people then it is better to either use the word bitcoin when you are refering to bitcoin or to specify what you mean.  Sure there are government agencies and even legislative uses of the term crypto and/or digital assets and or other generic ways that might be referring to bitcoin, yet to me it seems very vague, misleading and/or deceptive for folks to not be using the term bitcoin if they are refering to bitcoin, and to throw out terms like cryptocurrency is a very sloppy way of talking that might even establish a certain level of disingenuineness, that might even amount to acting to try to deceive and mislead others. 

In other time, people use the term cryptocurrency because they don't know what the fuck bitcoin is or they are trying to appear smart, which I doubt those to be sufficient reasons to be using such vague, ambiguous, misleading and/or deceptive term like cryptocurrency when they are intending to be talking about bitcoin or at least to point out the extent to which they are or are not including bitcoin in such term use.

[Gost ms]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

We can never compare Bitcoin with all the other fraudulent coins in the market. There are many coins in the market where many people are getting scammed by investing. If we now call Bitcoin a cryptocurrency instead of Bitcoin, then it may not be right at all. Because then many will think that Bitcoin is also a fraud. It is never right to compare Bitcoin with all the other coins in the market. Bitcoin is the king of all coins. If you can hold your holding in the long term, then you can make a lot of profit. If you hold all the other coins in the market except Bitcoin and hold it in the long term, then you may face a lot of loss. For example, the price of all these coins is almost always stable. Always invest in Bitcoin in the long term and it will be right to call Bitcoin Bitcoin without confusing everyone.

[Umulala-alala]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

Frequently, it is better to say what you are talking about rather than using a vague, misleading and even deceptive term such as crypotcurrency if you are talking about bitcoin.

Many times shitcoiners and even people who are engaging in vague, misleading and deceptive discussions are referring to cryptocurrencies and not specifying the extent to which they are talking about bitcoin, some shitcoins and/or both.

You are correct that shitcoins are quite correlated to bitcoin, so it would be erroneous to consider that buying shitcoins provides any kind of meaningful diversification from bitcoin, since an overwhelming majority of shitcoins could not survive without bitcoin.   Usually the idea of diversification means to attempt to protect from volatility, so there are attempts to diversify into uncorrelated assets or even assets that are within differing fields, which is not the case between bitcoin and various shitcoins.

Personally, I would suggest to completely stay away from shitcoins, yet surely some people are curious and they cannot help themselves, and they may even be inclined to trade and/or gamble with shitcoins, and even if they consider shitcoins as an investment (which is likely another BIG mistake) then they should limit their exposure to shitcoins to be no more than 10% the size of their exposure to bitcoin. 

If you are not trying to mislead or deceive people then it is better to either use the word bitcoin when you are refering to bitcoin or to specify what you mean.  Sure there are government agencies and even legislative uses of the term crypto and/or digital assets and or other generic ways that might be referring to bitcoin, yet to me it seems very vague, misleading and/or deceptive for folks to not be using the term bitcoin if they are refering to bitcoin, and to throw out terms like cryptocurrency is a very sloppy way of talking that might even establish a certain level of disingenuineness, that might even amount to acting to try to deceive and mislead others. 

In other time, people use the term cryptocurrency because they don't know what the fuck bitcoin is or they are trying to appear smart, which I doubt those to be sufficient reasons to be using such vague, ambiguous, misleading and/or deceptive term like cryptocurrency when they are intending to be talking about bitcoin or at least to point out the extent to which they are or are not including bitcoin in such term use.

Not making different between bitcoin and cryptocurrency has put fear in mind of some persons and has also mislead many to invest in the wrong coin shitcoins has cause pains to many so when people now hear term cryptocurrency maybe you plan to tell them about bitcoin and use the term cryptocurrency they will think is a scam investment because properly they might have had such terrible experience when they invested into cryptocurrency that's why been specific matters alot when given such reference so people should should mind how they use the term cryptocurrency so they won't get others who hasn't gotten such experience mislead so it's important we call bitcoin bitcoin and shitcoins shitcoins instead of cryptocurrency

[abaeze]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

I disagree with those who say that investing in other coins after investing in Bitcoin should be considered diversification. Diversification does not mean just dividing money in multiple places, but rather spreading investments in different and unrelated asset classes from each other, so as to reduce risk. For example, holding Bitcoin, while also investing in land or real estate or selling products or investing in your own business, etc.investing in different businesses means diversification.

Investing in Bitcoin does not mean investing in crypto. Because most of the altcoins or shitcoins on the market are scams, fake projects, or extremely volatile, but Bitcoin is different. Bitcoin is the first, safest, and truly decentralized digital asset. If it is called "crypto" along with other coins, newcomers will think that all coins are equally safe, which is not true at all. Bitcoin, which is known as the most reserve and investment asset in the world compared to any other coin so far, should never be compared to Altcoin or sheet coin. Rather, we currently call Bitcoin as digital gold and it has retained that value, so comparing Bitcoin with any other coin would not be right at all.

[Regardme]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

Please you don’t have to mislead new investors here that Bitcoin is also cryptocurrency, in as much as as bitcoin is also a type of cryptocurrency, it can never be compared. You should understand that Cryptocurrency is more like a general term that enclose many digital currencies, like litecoin, Ripples etc which are called shitcoins or altcoin and most of the coins are correlated with bitcoin prices movement. Also understand that bitcoin being focusing on secure, and decentralized currency, that’s how other coin have their own features, and most of it out there are not to be trusted. So be more specific please, if you’re talking about Bitcoin.

[Futurexxx]

Please you don’t have to mislead new investors here that Bitcoin is also cryptocurrency, in as much as as bitcoin is also a type of cryptocurrency, it can never be compared. You should understand that Cryptocurrency is more like a general term that enclose many digital currencies, like litecoin, Ripples etc which are called shitcoins or altcoin and most of the coins are correlated with bitcoin prices movement. Also understand that bitcoin being focusing on secure, and decentralized currency, that’s how other coin have their own features, and most of it out there are not to be trusted. So be more specific please, if you’re talking about Bitcoin.

What I expected you to say is that he should be specific when talking about Bitcoin because by generalizing it makes it looks like Bitcoin is part of shit that comes with most cryptocurrencies, like alt and meme coin, but saying that Bitcoin is not a cryptocurrency is not idea because it volatile nature and as a digital currency, it's a crypto if you want to state the obvious, just that it's on another level and the best when talking about digital asset.
Furthermore, what makes Bitcoin exceptional is it decentralized nature and the power it returns to the people, that's why I find it very weird that most people are still not convinced about Bitcoin even after it has proven beyond reasonable doubt that it's very reliable on the longer run.

[Son Of Blockchain (SOB)]

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

Please you don’t have to mislead new investors here that Bitcoin is also cryptocurrency , in as much as as bitcoin is also a type of cryptocurrency, it can never be compared. You should understand that Cryptocurrency is more like a general term that enclose many digital currencies, like litecoin, Ripples etc which are called shitcoins or altcoin and most of the coins are correlated with bitcoin prices movement. Also understand that bitcoin being focusing on secure, and decentralized currency, that’s how other coin have their own features, and most of it out there are not to be trusted. So be more specific please, if you’re talking about Bitcoin.

I think you're the one misleading yourself or confusing yourself rather. Yes bitcoin is also a cryptocurrency, if it's not, what then would you call it? I agree that bitcoin is different from other cryptocurrencies, it is the best cryptocurrency for investment since volatility doesn't hinders investors from buying and hodling it for longer period but bitcoin is still classified under the term cryptocurrency and you're the one who's wrong.
 Cryptocurrencies are digital currencies that can be operated online through a computer device, while bitcoin is a digital currency that is decentralized and was created to act as an alternative to paper money but operates on blockchain technology, it is more outstanding than others cause it's the first decentralized cryptocurrency and because it has those attributes you mentioned doesn't mean that it shouldn't be classified as cryptocurrency, take note.

[Cossyblack]

You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.

My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.

Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin

Please you don’t have to mislead new investors here that Bitcoin is also cryptocurrency, in as much as as bitcoin is also a type of cryptocurrency, it can never be compared. You should understand that Cryptocurrency is more like a general term that enclose many digital currencies, like litecoin, Ripples etc which are called shitcoins or altcoin and most of the coins are correlated with bitcoin prices movement. Also understand that bitcoin being focusing on secure, and decentralized currency, that’s how other coin have their own features, and most of it out there are not to be trusted. So be more specific please, if you’re talking about Bitcoin.

You have to correct your statements regarding Bitcoin not been a cryptocurrency because it could mislead Newbies in the house. If I am correct you were trying to emphasize on if Bitcoin is also a cryptocurrency and if that's is it then your correct. Bitcoin was the first decentralized crypto currency that was created by Satoshi Nakamoto. Crypto currency is a generally used name for violatile assets and it could be very confusing sometimes to figure out which of the coins in specific you are talking about because shitcoins are also crypto currency. However Don't used crypto currency in general to defined Bitcoin,if it's Bitcoin then be specific that it's Bitcoin and if it's shitcoins,then specify by mentioning shitcoins so that we can all understand you better.
Secondly you're correct for saying Bitcoin cannot be compare to shitcoins or altcoins. Bitcoin has no comparison and cannot be compare to shitcoins because it's has performed more better than all the crypto coins combined over the years and its also the best performing asset in the world till date.Bitcoin is the king of all digital assets.