What is your opinion on diversification of crypto investment?

[Husires]

It is not diversification. Diversification is in assets that are not affected by each other or those that when one of them rises, are not affected by its rise or are affected inversely, such as the inverse relationship between gold and the dollar or the lack of direct influence between the dollar, oil, real estate, and stocks. This is diversification, and since all cryptocurrencies are affected by the price of Bitcoin, it is better to invest in Bitcoin.

[DrBeer]

A recent conversation between me and @slaman29 on a topic in bitcointalk showed me that we hold different opinions on the topic of diversification of investments. What is your opinion on the diversification of crypto investments?

Are you of the opinion that diversification is totally bad? or
The opinion that diversification is good if done correctly?

Diversification is a critical risk mitigation mechanism.

But there are nuances

1. from personal experience - diversify MUST ! Cryptocurrencies, gold, real estate, stable currencies (dollar, euro, ...), land, stocks, business investments, etc. Such “sets of assets” are virtually guaranteed to compensate for the losses of assets “in bad condition” and almost guaranteed to give an increase in your savings, unless of course do not take into account global cataclysms ... But even in this situation, for example, gold and silver will be very good assets.
2. If we talk about diversification of CRIPTOACTIVES, it also sounds logical. I'm sure each of us has a “portfolio of crypto-assets”. I have bitcoin and about 10 other assets. Bitcoin is the analog of gold in the fiat world, everything else is silver

[Dr.Bitcoin_Strange]

For me I think focusing in a particular investment is more better especially as a newbie, you don't have to jump from one investment to the old, this has brought a lot of investors down, I have a friend who was investing on Bitcoin and doing very well but he has not accumulated enough Bitcoin so he decided to invest in other crypto coin so when he started at first it was going fine but as time goes on it was too much for him to handle so he lift the other coin and came back to Bitcoin and we discovered that if he had focused on Bitcoin alone he would have accumulated enough Bitcoin, some people that he started Bitcoin investment with has more Bitcoin than him right now and to meet up with them will take him some years and even the other coin he was investing into has lost value and has not gain back value.
So it will be better you focus on a particular invest and grow it very well.

I'm not saying one should not have another investment but before talking about developing another investment one should first build the first investment very well and make it big, some people jump from one investment to another without establishing one first which is very wrong, if you have 3 investment you are still building it will be very difficult for you to build it and if you are not careful you will fail.
A lot of people started 2 or 3 investment at once and right now they don't have any investment because all the investment they started at once collapsed.

[Hatchy]

As far as i know diversification of investments can be a very smart strategy and way to make more money if one has the knowledgable ideas and experiences on where and how to go about It. although diversified investments can be hard to maintain, monitor and control.still if you can find a balance then why not??? invest  in a few strong, well-researched cryptocurrency rather than focusing only on one and expecting it to blossom because you will get very little outcome if all efforts are in one basket.

[Asiska02]

A recent conversation between me and @slaman29 on a topic in bitcointalk showed me that we hold different opinions on the topic of diversification of investments. What is your opinion on the diversification of crypto investments?

Are you of the opinion that diversification is totally bad? or
The opinion that diversification is good if done correctly?

I don’t see anything wrong in diversification of bitcoin investment but the bosses who have been longed enough in the game and understands how they play out will always tell you to not diversify not because it’s not profitable but because it has a lot of risk which when affected by can make you lose interest in cryptocurrency and will eventually make you miss out on the greater part of bitcoin  as a cryptocurrency.

When you have an understanding of the market and have learnt how the market moves and evolves from time to time, you can take the risk of diversifying but having in mind to also not allow the repercussions of it to affect you emotionally. Some people in crypto made it today through investment in other altcoins, it is not right to say other crypto aren’t that dependable on but their long time results is what is not certain and can make you lose your money.

[albon]

Since investing in crypto requires assets, it is important to consider diversifying your assets before you invest in crypto. You can diversify your profits by dividing your investment in different ways. But everything depends on your experience depending on what currency you are buying and how long you are investing. In present scenario you can buy ton, btc, eth if you want from which you will get profit very fast. As meme coin is going on hype this year so don't get too excited and buy meme coin. Take more time to research and put in the best meme coin list then confirm the investment.

[0t3p0t]

Since investing in crypto requires assets, it is important to consider diversifying your assets before you invest in crypto. You can diversify your profits by dividing your investment in different ways. But everything depends on your experience depending on what currency you are buying and how long you are investing. In present scenario you can buy ton, btc, eth if you want from which you will get profit very fast. As meme coin is going on hype this year so don't get too excited and buy meme coin. Take more time to research and put in the best meme coin list then confirm the investment.

Putting all apples together is good but if one was infected with molds then all of them has a higher possibility of decaying and will become useless as I think this logic can also be applied on investments especially Bitcoin and other assets not affected by each other like precious metals and real estate.

[JoyMarsha]

I don't think that diversifying means putting money in more than one coin. From my understanding, diversifying means putting into other assets that are not cryptocurrency. That is, if you feel that you have more than enough Bitcoin in your possession and you feel like you don't need more butvwant to keep investing since you have the resources. The money that you were using to accumulate bitcoin will be channeled in other assets like real estate, gold stocks, bonds and cash equivalents. This is because if one line of investment is not doing well, the other can balance it and that gives more confidence for the investor because his money is in different assests. If you are investing in bitcoin and you diversify into altcoins, it is not secured and very risky because we know that bitcoin is the best in long-term and profit generating, also bitcoin is king and controls the market movement of altcoins. It means that if bitcoin dips, all your other altcoins will also dip putting you at a big loss in general.

We learn every day. I was thinking that having a diversifying investment is when one invested in more than one coin in crypto coupled with Bitcoin. Hearing a different meaning of what diversifying can also mean sounds great since it's for one to invest in other investment channels than hopping on one which its future is unpredictable.

[The transformer]

A recent conversation between me and @slaman29 on a topic in bitcointalk showed me that we hold different opinions on the topic of diversification of investments. What is your opinion on the diversification of crypto investments?

Are you of the opinion that diversification is totally bad? or
The opinion that diversification is good if done correctly?

From reality (real life experience) or better still business stand point, diversification has been a good venture that vehicles financial freedom. In this case it might catapult and sustain crypto stability (personally).. Somehow, the advantage or disadvantage could be hidden until tried..

I don't think that diversifying means putting money in more than one coin. From my understanding, diversifying means putting into other assets that are not cryptocurrency. That is, if you feel that you have more than enough Bitcoin in your possession and you feel like you don't need more butvwant to keep investing since you have the resources. The money that you were using to accumulate bitcoin will be channeled in other assets like real estate, gold stocks, bonds and cash equivalents. This is because if one line of investment is not doing well, the other can balance it and that gives more confidence for the investor because his money is in different assests. If you are investing in bitcoin and you diversify into altcoins, it is not secured and very risky because we know that bitcoin is the best in long-term and profit generating, also bitcoin is king and controls the market movement of altcoins. It means that if bitcoin dips, all your other altcoins will also dip putting you at a big loss in general.

We learn every day. I was thinking that having a diversifying investment is when one invested in more than one coin in crypto coupled with Bitcoin. Hearing a different meaning of what diversifying can also mean sounds great since it's for one to invest in other investment channels than hopping on one which its future is unpredictable.

Well I think the Op was just pointing at the crypto market..
But then those other areas of investment cannot be underemphasized because that's the real diversification. Doing it in different sectors makes it more leveraging..

[libert19]

I'm of the opinion that diversification is good if done correctly. Now what is it mean by done correctly? If you are diversifying in crypto, it's fruitless because market is dominant by how BTC performs, you might argue how about stablecoins, I don't trust them tbh because they are centralized and the ones that are less centralized I don't trust them that they'll be able to retain their peg all times.

It's good to diversify into sectors which don't influence each other. For example, some in crypto, some in metals, some in real estate, some in government bonds. So you won't drown if one sector collapses.

[albon]

Since investing in crypto requires assets, it is important to consider diversifying your assets before you invest in crypto. You can diversify your profits by dividing your investment in different ways. But everything depends on your experience depending on what currency you are buying and how long you are investing. In present scenario you can buy ton, btc, eth if you want from which you will get profit very fast. As meme coin is going on hype this year so don't get too excited and buy meme coin. Take more time to research and put in the best meme coin list then confirm the investment.

Putting all apples together is good but if one was infected with molds then all of them has a higher possibility of decaying and will become useless as I think this logic can also be applied on investments especially Bitcoin and other assets not affected by each other like precious metals and real estate.

The key is to avoid putting all your money and risk into just a few coins or tokens. This can help reduce volatility in your portfolio and hopefully to avoid a major crash. An easy way to diversify your crypto portfolio is to add new tokens to your existing holdings. As long as you want you can hold btc, eth as long term as well as buy many new tokens entering the market. By buying all these new tokens there is a short term profit diversification.

[target]

When you have the means to diversify your assets to crypto then you already have heard of advices from someone else who did the same diversification.

The investors who focuses mostly in stock market and suddenly they see Blackrock pronouncing Bitcoin have been trying to buy cryptocurrencies as well esoecially when ETF was alproved.

[0t3p0t]

When you have the means to diversify your assets to crypto then you already have heard of advices from someone else who did the same diversification.

The investors who focuses mostly in stock market and suddenly they see Blackrock pronouncing Bitcoin have been trying to buy cryptocurrencies as well esoecially when ETF was alproved.

Yeah I think some of them did and some just don't care about crypto but the thing is that those who trust and made their way to Bitcoin has the higher chance of making huge profit in just a short period of time especially during bullrun. Though risky but that is the point of diversification because we don't want all our assets are messed up at the same time that is why we chose different nature of assets.

[Sim_card]

As far as i know diversification of investments can be a very smart strategy and way to make more money if one has the knowledgable ideas and experiences on where and how to go about It. although diversified investments can be hard to maintain, monitor and control.still if you can find a balance then why not??? invest  in a few strong, well-researched cryptocurrency rather than focusing only on one and expecting it to blossom because you will get very little outcome if all efforts are in one basket.

It is better that you start with bitcoin investment and build it to the extent that you feel you already have enough bitcoin before diversifying into other assests that are not crypto related so that if bitcoin price dips, it will not affect your entire investment. Ypu can diversify into stock, bonds, real estate and cash equivalent. However, it is not a most to diversify if you don't know how to go about it. Only bitcoin and cash can still make you successful if you take your bitcoin investment serious and grow it to a good size because currently, I don't see any investment that gives high profits like bitcoin when you hodli for long.

[Aanuoluwatofunmi]

Diversification shouldn't be only in crypto, but we have to learn on how we can achieve this on every sides, when we make diversifications, we are going to have a reduced tendencies for lost, things couldn't have happened to some people that they went bankrupt because of a single choice investment, which is eventually failed along the way and they have nothing to serve as backup for them to rely on.