Altcoin: Need for diversification of crypto investment

[Tribalchief]

The crypto market keeps growing daily with different crypto projects making way into the market. Adoption happens to be number target of these project owners, as they understand the power behind it. Bitcoin which happens to be the first crypto project and the most popular has gained vast adoption and the price gap between itself and others is very huge. Certainly, there is no project owner to monitor the affairs of Bitcoin since it operates on it's own protocol.

Recently, I have released that investment in altcoin isn't well talked about compared to that of Bitcoin. I also gathered some survey which i found out that so many Bitcoin ethusiast don't encourage or give room for altcoin investment. They only see Bitcoin as the only crypto worth investing on. Sadly, I think this is a bad ideology concerning altcoins in general.

In the crypto space, diversification of investment should be crucial. It is generally said that: "it's unwise to put all eggs in one basket", which makes diversification very important since both altcoin and Bitcoin gives their respective profits. Those that mean that altcoin don't have profits?.

Reasons why some crypto ethusiast don't support altcoin investment
1. Security - from my survey, most of these ethusiast make reference to the security difference between Bitcoin and altcoin. They believe Bitcoin has more security protocol than altcoin.

2. Price difference - this is also another point that gets crypto ethusiast excited. Due to the price difference of Bitcoin and other altcoin, the attraction would be definitely different.

3. Overzealous - I have also come to noticed that most crypto ethusiast are ignorant and overzealous. They just can't accept altcoin due to their overzealous attitude towards Bitcoin only.

I have this feeling that most people who see Bitcoin as the only crypto worth investing are been too overzealous. Sadly, there is no other perfect word to describing them. They see everything positive with Bitcoin, but negative with altcoin.

Why we should diversify our crypto investment
1. Multiple profits:
Through diversification, we can certainly make profits from multiple altcoin projects with time. Our investment should have a say in the amount of profit we get.

2. Avoidance of unplanned circumstances:
It's already clear to everyone that our keys to wallets are very vital. Certainly, people still lose their keys in this 21st century. With diversification, we can easily fall back to other projects when we misplace our keys to a particular wallet.

In conclusion
I strongly support the notion that altcoin investment should be as important as Bitcoin. No one should be less prioritize over the other. Though, it's unrealistic to convince people to invest in any crypto project. It is also important to know that not all altcoin projects are geniune and guarantee profits. This is why proper research is always encouraged.

Note: this post is not meant to support any crypto project or tell people where to Invest their money. I am just trying to be a strong advocate for altcoin investment.
Whatever decision you make is clearly at your own risk.

Please read through with caution and drop your reply without false assumption.

[joniboini]

1. Multiple profits:
Through diversification, we can certainly make profits from multiple altcoin projects with time. Our investment should have a say in the amount of profit we get.

While this can be true, the opposite is also true at the same time. It is a fact that Bitcoin price movement will likely impact alts prices, regardless of how strong their fundamentals are. Exceptions can occur, such as airdrops from notable projects in a sideways market, but stuff like that is rare. Not to mention most of them are short-lived and sooner or later would follow Bitcoin price too. At the very least, there are no notable coins/tokens that move without being affected by Bitcoin, hence why some people think diversification on altcoins doesn't mean anything since you're exposing yourself to the same risk either way. Things will be different if you speak only about alts though, because their fundamentals will play a part there. For example, choosing between ETH or Solana, Doge or INJ, and so on.

2. Avoidance of unplanned circumstances:
It's already clear to everyone that our keys to wallets are very vital. Certainly, people still lose their keys in this 21st century. With diversification, we can easily fall back to other projects when we misplace our keys to a particular wallet.

I don't think this is a good reason to diversify your capital, nor it is related, especially if you invest in projects like ETH and its layer-2 or similar networks such as BSC. Besides, you should consider improving your security practices if you're still at risk of losing your wallet details.

[Condorlaib]

Any type of investment always involves certain risks, and investing in cryptocurrencies is especially associated with high risks due to the strong volatility of the crypto market. Therefore, in order not to “burn out” on the first transactions, we recommend diversifying your investment portfolio.

[Jaephoenix]

Diversification is a must in any portfolio, whether crypto or otherwise. Why? Because one never knows what one can get in any circumstance of investment. The market can go either way and I am not about to put all my eggs in one basket

[MrSpasybo]

For the purpose of decentralizing currency, Bitcoin is the top choice because it is highly decentralized, has no leading organization and has a limited total supply. Extreme Bitcoin supporters believe this, for them, altcoins are just jokes: have a transparent team, are poorly decentralized, can be issued indefinitely with inflation of more than 10% per year 

However, for most investors, their goal is to seek profits, so diversifying their investments is necessary. Even for crypto to become strong, strong price increases such as TRB, INJ, OKX or SOL in the past few months are necessary. Even meme coins that do not have much use value are being hyped like DOGE and SHIB in 2021.

I don't just invest for fun. I invest to make profit, I support both of Bitcoin and Altcoins because they create opportunities

[TopT3ns]

Diversification is a must in any portfolio, whether crypto or otherwise. Why? Because one never knows what one can get in any circumstance of investment. The market can go either way and I am not about to put all my eggs in one basket

Yes, it can be said to be asset management, which must be distributed to all coins or tokens that have the potential to gain profits, but I prefer to divide it on a fairly small scale because if I divide assets too widely, it will make it difficult for me to manage them.

[KryptoBull]

Don't put all your eggs in one basket, and we should do the same with investing.
In the crypto market, most of my capital is in Bitcoin because Bitcoin is safer than all the other altcoins. A small part is for Ether and large ecosystem coins such as ADA, BNB and SOL.
To increase safety, I even use multiple exchanges to avoid losing all my crypto assets when CEX gets hacked.

[Dr.Bitcoin_Strange]

Recently, I have released that investment in altcoin isn't well talked about compared to that of Bitcoin. I also gathered some survey which i found out that so many Bitcoin ethusiast don't encourage or give room for altcoin investment. They only see Bitcoin as the only crypto worth investing on. Sadly, I think this is a bad ideology concerning altcoins in general.

In the crypto space, diversification of investment should be crucial. It is generally said that: "it's unwise to put all eggs in one basket", which makes diversification very important since both altcoin and Bitcoin gives their respective profits. Those that mean that altcoin don't have profits?.

Altcoins investment has actually been fruitful to some people; it has generated a huge profit for some people, but in the reverse case, Altcoins has also rendered some people bankrupt. I have made some profit by investing in altcoins in the past years, but later, I just realized that it is quite crazy to start investing in altcoins when you don't actually understand and agree to the risk that is attached to them.

Generally, every investment has a risk attached, but there is a high risk of investing in altcoins when you don't actually know that the project you are investing in will turn into a shitcoin within a short period of time.

I decided to take a break from altcoins after experiencing several failed projects and also reading the stories of many investors who lost millions of dollars by investing in some altcoins during the ICO level.

Speaking about investment diversification and not putting your eggs in one basket, that doesn't mean that your diversification should only be based on crypto currency; you can split your capital over other physical assets such as gold, petroleum, pharmaceuticals, stocks, real estate, bonds, etc.

[sampoerna]

If it is related to investing in altcoins, I strongly agree with the importance of diversifying our investments. As you have explained, the importance of diversification for investing in crypto, especially non-Bitcoin. At least we can take advantage of the benefits for higher profits and reduce the risk of losing money when all in on just one altcoin. because we won't know for sure which altcoins will really last a long time and rise drastically. Maybe we can think about top altcoins instead. However, there must still be diversification so that profits can be more optimal. and I personally prefer to keep taking top coins, not meme coins or hype coins.

[TopT3ns]

Don't put all your eggs in one basket, and we should do the same with investing.
In the crypto market, most of my capital is in Bitcoin because Bitcoin is safer than all the other altcoins. A small part is for Ether and large ecosystem coins such as ADA, BNB and SOL.
To increase safety, I even use multiple exchanges to avoid losing all my crypto assets when CEX gets hacked.

Dividing assets into several sectors is very good, and that way you can get profits faster, so your trading method is correct. When you have a lot of assets, arranging a place to put all the cryptocurrency you have is very useful because hackers can attack. anywhere and can be a serious threat.

[Rembroman]

For this you need to do a lot of research projects and tokens, from this more tired than earn, but sometimes you can find gem like TFS or blocx, in TFS still holds tournaments and giveaways that allows you to get some money for participation

[Callisto]

Portfolio diversification in cryptocurrencies can be a smart approach to reduce risk and increase profit opportunities. Bitcoin, as the first and largest cryptocurrency, has a high degree of acceptance and liquidity. However, different altcoins provide unique opportunities and innovations.
It is important to consider the nature of each investment asset, conduct detailed research and consider your strategy before committing funds.

[Ambatman]

diversification should be done with coins that are not correlated. Whats the essence of diversifying when a drop in one brings about a drop in another. Its like holding same coin with different name. Yes many, if not all cryptocurrency are affected by Bitcoin price movement but recover and different pace. There are different types of coin like AI, privacy, speed, Dapp, Smart contract,stakes etc. You can choose to get various coin from each section or better still don't limit your diversification to cryotocurrency alone.

[ariaryanto]

Any type of investment always involves certain risks, and investing in cryptocurrencies is especially associated with high risks due to the strong volatility of the crypto market. Therefore, in order not to “burn out” on the first transactions, we recommend diversifying your investment portfolio.

That's right, all investments will have advantages and disadvantages. Therefore, we have to choose in detail or correct the coins we will invest in first so that we don't fall into big losses. If not, don't blame people if we find losses. My advice is to invest with a lot of knowledge and don't rush to sell it, buy coins listed in CMC number 10 above because these coins are definitely good. but we just have to know the market movements.

[TopT3ns]

Any type of investment always involves certain risks, and investing in cryptocurrencies is especially associated with high risks due to the strong volatility of the crypto market. Therefore, in order not to “burn out” on the first transactions, we recommend diversifying your investment portfolio.

That's right, all investments will have advantages and disadvantages. Therefore, we have to choose in detail or correct the coins we will invest in first so that we don't fall into big losses. If not, don't blame people if we find losses. My advice is to invest with a lot of knowledge and don't rush to sell it, buy coins listed in CMC number 10 above because these coins are definitely good. but we just have to know the market movements.

So far, no one can provide a guarantee that the top ten coins on CMC are good and will provide profits because, basically, cryptocurrency price movements depend on demand on the exchange, and of course, when users increase, it will make the price expensive. But what you need to pay attention to is a coin with a very large amount of supply that will find it difficult to increase the price.