Diversifying your portfolio to reduce the effects of crypto volatility

[Karani 99]

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

[PiroSense 2681]

6 hours ago, Karani said:

It’s rare for different crypto assets to drop in price together.

Diversifying your portfolio is good, but if you look at the charts, most cryptocurrencies follow the trend line of Bitcoin. Have a quick peek at the CoinMarketCap charts:

 

*USDT (Tether) is excluded because it mimics the $1 value every time, an example of a stablecoin.

*BSV does not follow much on Bitcoin, since it is made to be "a better version of Bitcoin", according to its founder Craig S. Wright.

 

Notice the similarity within their price action? Unless you are investing in some other cryptocurrency that is away from the top charts, you're most likely to follow Bitcoin's pump and dumps.

 

Though you are still correct, diversification of funds would not only have your chance of profits higher, but also lessens the risk of losing more money on a single investment. This does not only apply to cryptocurrencies, but also in other types of investments.

[Armcannon 858]

Yes it's a good idea to diverse your investment in cryptocurrency.every coins has different price increase which you can make more profit. like these past few days .Bitcoin increase about 30%+ while dash gains more than 50%.

[Jeet Narayan 1940]

Crypto market are very volatile . We can only invest in big and top crypto projects coins only . We can manage our portfolio daily . Investment in different coins can reduce our risk .

[pkrs 603]

Diversifying in crypto is a good idea but i which coin we have to diversify will be a big challenge if i invest in different coins if the price of those coins will not increase it will be giving you a big loss so selection of coins in Crypto is very important.

[BTC Future 3946]

This is a good advice if the market is bullish. Still you'd better hold a large percentage of your money in Bitcoin, as when things go wrong it will save you from a lot of trouble. Altcoins usually go down a lot more when Bitcoin's price starts dropping.

[Romaan1987 601]

19 hours ago, Karani said:

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

yes this could be beneficial, but it is hard to find such coins that do not effected by bitcoin prices directly, as when bitcoin prices up and down sudden, alt coins prices dumps sudden.

[bentayebsalah 2280]

Your words are correct, you must diversify the cryptocurrencies that you deal with in your account and do not put all eggs in one basket so as not to be greatly affected by market fluctuations.

[MohammadMohsin 569]

I really didn't get your point. Can you explain the question more furthurly. It would be really great if you did so. 

[phpMailz 568]

Yeah buying many different cryptocurrencies will reduce your chance of you losing all your investment cause all the coin can't just drop in price all a once, usually as one is dropping others are growing up in price.

[Investors Blog 385]

On 1/21/2020 at 11:13 PM, Karani said:

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

Yes diversification is the best strategy when investing in cryptocurrency. Having a multiple alts together with bitcoin in your basket will provide health returns in the long run.

[alexisfuentes 2130]

Important think of your title:

Diversity

Portfolio

Volatility

 

Diversifying is one of things to consider when you start crypto.  We shouldn't have a single crypto.

So when you start selecting cryptos, you start to have your  portfolio you can start investing and take advantage of market volatility, that is nothing other than price rises and falls in percentages above 10%.

 

 

 

[tienda 8776]

I dont think with diversifying your portfolio to reduce the effects of cryptocurrency volatility, because if all coin follow the Bitcoin price is the same to have on your portfolio once Bitcoin or many coins! but I agree with you if you can take on your portfolio Bitcoin and Fiat money.

[Armcannon 858]

Honestly I don't have idea if diversify of portfolio affects the volatility of price of cryptocurrency.but it is a good idea to diversify your investment because some coins are performing better than Bitcoin this like dash check it's chart you'll see it gains more value than bitcoin this January.

[BTC Future 3946]

Diversifying in crypto is tricky. I'd recomment diversifying between crypto/stocks/gold and real-estate. This is actual diversification. Otherwise it's like buying a hundred penny stocks and hoping one of them will succeed. Most altcoins are trash anyway, why would you risk in hundreds of them?

[Naylor89 1223]

It is always good to diversify the portfolio of investment in other to widen the chances of making good returns. When you invest in several coins, definitely, one or two of them will become success and meet it's expectation.

[Oxygen 1004]

On 1/21/2020 at 8:13 PM, Karani said:

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

Definitely it is better to have investment in different of coins. But the most important thing is that all the coins/projects should be studied well fundamentally and technically too. So in case of loss we well have many other good coins invested which will give us better profits.

[Roomi 1119]

On 1/21/2020 at 8:13 PM, Karani said:

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

That is a cool idea to have different types of crypto currencies. It will minimize the chances of sudden losses against price dumps. But coins should be selected wisely not blindly 

On 1/21/2020 at 8:13 PM, Karani said:

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

That is a cool idea to have different types of crypto currencies. It will minimize the chances of sudden losses against price dumps. But coins should be selected wisely not blindly 

[Zerocrisis 266]

On 1/21/2020 at 9:13 AM, Karani said:

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

Don't put all the eggs in a single basket, this is a very popular phrase and applying it to the terminology of trade and investments, it refers to the diversification of your capital and thus lessen your risks and extend your profits.

[Ayush Singh 1175]

Diversifying our portfolio can effect in two ways either it can increase the profit from any one of the Crypto coins or it can also be suffered from big loss it depends upon the timing and the situations of the market.

[lifelline1262 15]

Most of the traders diversify their portfolio so that they might not lose their assets at once when one of the coin goes nut

[rekter 8129]

On 1/21/2020 at 5:13 PM, Karani said:

It’s rare for different crypto assets to drop in price together. The more the asset classes you invest in, the higher the possibility of deriving excellent returns from one of them.

Actually i kind of disagree. When btc makes unexpected move it seems like all altcoins will react as whole. Diversifying still works in case if some altcoin turns up to be a scam, developer disappears or there's a huge bug found in the code. That won't affect other coins. But price movement of bitcoin can bring them all down.

[Munam 23]

Not it can not effect to the crypto currency because the crypto currency is very huge currency it is more powerful then  other currencies 

[magd 5231]

This is true and I thank you for this important participation, as it is very useful when investing at first to look at the graphic falls of currencies and also must choose several portfolios so that all the currencies in the portfolio are not stolen in case the platform is not honest

[Munam 23]

Diversify of portfolio effects the currency of bitcoin price but a bitcoin currency vale cannot be down