Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: marksayson on July 31, 2018, 03:42:40 AM
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Diversification is also for peasants who anticipate failure and have no confidence in themselves. Most dont even understand that holding different altcoins doesnt count as diversification. You're only minimizing profits and maximizing exposure to risks by holding 10+ coins and you look like a moron when you're holding 15+ coins.
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It is better not to be too much to hold Altcoins because to back up when the price goes down you don't have a backup.
So it can be said that it is also greedy in trading and not to be like that, be patient is the key.
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Yeah. I agree with that. With lot of different coins I think it's hard to make profit. If half of them price is going down and half going up, you got almost nothing. I prefer only one coin, profit or loss not in the middle.
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Diversification is also for peasants who anticipate failure and have no confidence in themselves. Most dont even understand that holding different altcoins doesnt count as diversification. You're only minimizing profits and maximizing exposure to risks by holding 10+ coins and you look like a moron when you're holding 15+ coins.
Ok i agree partially of what you say, even if i am very confidence in a trade that i make but market can change have big changes any minute or seconds. If you does not diversify you are putting all your risk on that particular coin what i agree is over diversify is quite a stupid thing to do unless you are more to hedging with big capital.
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I think investing or holding a crypto depends on the user's needs. Smart users only use a few coins to invest and trade. they choose coins that have a good future.
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Diversification is also for peasants who anticipate failure and have no confidence in themselves. Most dont even understand that holding different altcoins doesnt count as diversification. You're only minimizing profits and maximizing exposure to risks by holding 10+ coins and you look like a moron when you're holding 15+ coins.
Perhaps it would be better if we use an example here.
If you are planning to invest in crypto with $100 as start up capital, it is not wise for me to diversify into two or more altcoins. It is better to just focus on one which can possibly give you the best returns.
If you have $1,000 or more as start up capital, I think it is good to diversify with two to four investments. Of course, choosing one is also not a bad choice.
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Diversification is also for peasants who anticipate failure and have no confidence in themselves. Most dont even understand that holding different altcoins doesnt count as diversification. You're only minimizing profits and maximizing exposure to risks by holding 10+ coins and you look like a moron when you're holding 15+ coins.
I don't agreed that diversification is for peasants who anticipate failure or have no confidence in themselves. Everyone has his or her strategy in crypto investment, whether a trader on various coins or simply a holder. There are individuals that put their eggs in one basket and succeed while, others choose to diversify their port folio and get it right. One think i must add here is professionalism in business. If you are "a day" trader, for instance, you don't expect one port folio crypto coin to succeed in trades all the time, and this could be more reason to have even 10+ coins to enhance your of profit or loss possibilities.
An "investment" or "Holding" of one crypto port folio has the potential to remain for long periods of time (weeks, months ) without earning a dime even as a Trader (eg "Day Trader" for instance). Holding of different coins is an investment and its obviously a diversification of port folio in my opinion. It all may depend on your definition of investment and the meaning of diversification of investments. Thank you.
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Not sure I agree with your statement, holding different altcoins (especially if they are focused on different industries) is, in my opinion anyway, diversification. Whether that is the right choice is another matter, and I agree it will potentially dilute your returns. It ultimately depends on your attitude to risk, and true diversification should involve multiple investment avenues including property, bonds, stocks, crypto etc. Anyway, we're talking crypto here, so here's my take on it.
If you had invested equal amounts in the top ten currencies this time last year (as of September 10th 2017 - see below), you would have a overall loss of just over 5%. It obviously doesn't tell the whole story though, because the market has been on a roller-coaster ride since then. What is obvious is the relative risk/reward of not doing that - as if you picked one coin, then you would now be looking at a portfolio with losses of over 60% if you'd picked the 'wrong' coin, or gains of over 50% if you'd picked the 'right' one.
1. Bitcoin - $4083.7 (6403.89) +56.82%
2. Ethereum - $281.75 (203.26) -27.86%
3. Bitcoin Cash - $515.77 (484.90) -5.99%
4. XRP - $0.20403 (0.286568) +40.45%
5. Litecoin - $61.48 (55.40) -9.89%
6. Dash - $309.32 (197.71) -36.08%
7. NEM - $0.254176 (0.10019) -60.58%
8. Monero - $109.66 (106.15) -3.20%
9. IOTA - $0.517025 (0.564325) +9.15%
10. Ethereum Classic - $13.78 (11.47) -16.76%
Anyway, each to their own.
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Hello cryptothief, i think from you first paragraph, we on thesame page in getting this discussion on this thread right as far as investment and diversification of investment are concerned.
Now, let us at look the definition of both, the port folio investment and the diversification of investment whether crypto or other types of investment.
According to investopadia, "An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit."
Portfolio Diversification is a foundational concept in investing. Main while, In finance and investment planning, portfolio diversification is the risk management strategy of combining a variety of assets to reduce the overall risk of an investment portfolio.
Additionally, in finance and investment planning, portfolio diversification is the risk management strategy of combining a variety of assets to reduce the overall risk of an investment portfolio. Portfolio diversification will lower the volatility of a portfolio because not all asset categories, industries, or stocks move together.
Finally, in other words, by owning a large number of investments in different industries and companies, industry and company specific risk is minimized. This decreases the volatility of the portfolio because different assets should be rising and falling at different times; smoothing out the returns of the portfolio as a whole. Thank you
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Maybe for others diversification is an idiot decision but for me diversification helps me to accumulate more Bitcoin and Ethereum. We know that Bitcoin and Ethereum will surely dominate the market but you cannot multiply it if you don't diversify.
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It has no sense man, with diversification you reduce standard volatility, for sure you have to choose good coins but risk is reduced if you have a well diversified portfoglio.... in long-term you will notice the difference!
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Diversification is also for peasants who anticipate failure and have no confidence in themselves. Most dont even understand that holding different altcoins doesnt count as diversification. You're only minimizing profits and maximizing exposure to risks by holding 10+ coins and you look like a moron when you're holding 15+ coins.
Yes I agree diversifications to anticipate the failure. I have done it. Because crypto currency is high volatile.
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I think holding 10 coins is quite a lot to do and with that if the price of all the coins. experiencing an increase, we will get many benefits.