Diversifying your portfolio to reduce the effects of crypto volatility

[cryptovlek 2597]

In crypto it is only Bitcoin that is a good asset to invest the rest are all for very short term. But diversify is good with more assets if it is possible. I don't know if gold is good investment but it will not be bad either.

[Michar1 1693]

It usually happens because they are within the same network, for example eth, when it has lost updates, the tokens under its network also tend to have loss, or like bitcoin since it is the main one of all networks if it drops, maybe all the assets under your network tend to decline.
As for investing in assets, I recommend investing in assets that you notice have the possibility of increasing their price, as would bnb, it is a utility currency of the binance exchange and it tends to increase in value because it is needed to carry out transactions.

Edited November 14, 2020 by Michar1

[1mstfcngz1 29]

This is the biggest factor that separates crypto users. Crypto investors are the ones who diversify its portfolio and keep it for a long time. Those with less variety and less time are traders.

[tiposamuel 59]

This is the best advice they could have given me when I started, unfortunately it wasn't. Since then I have learned that with the only cryptocurrency with which you can afford the market decline is with bitcoin since its trend will always be the rise. Since then I always divide my capital into different cryptocurrencies to avoid being so affected by the volatility of the market.

[bogdanoff 3173]

On 1/21/2020 at 6:13 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.

No it is not rare at all. All crypto drop together always. If Bitcoin drops the rest are even more. Maybe you haven't seen a lot and you think this can't happen but it is like that. It is another reason you should not diversify but hold a lot in Bitcoin and very little in altcoins.

[julianisaac 97]

As in all investments, you should not put all the capital in the same asset. And less in cryptocurrencies where volatility is very high. In addition, it must be diversified with other types of assets that are not cryptocurrencies. In this way, if an asset goes down, we can have other opportunities with the other assets.

[Mella 3680]

I'm very thankful for the very good advice my dear. I am diversefied too but my major holding is the Bitcoin. I am have only 10% today in the altcoin and I am expect not much. I was trade for altcoin above 80% until August but when the first scam appear in the DeFi I lower and sold all for Bitcoin. I am hold only a little ETH TRX and some other coin but very little. We are diversefy but we are need with a plan, not random whatever we are find and at what price it is. I am sell higher altcoin for more Bitcoin.

[hugo parra 20]

si es buena la recomendacion a que diversificar la inversion en difrentes monedas como tambien hay que diversificar las wallet y exchamge para no tener la inversion en uno solo le recomiendo yobit.net

[SatoshiGames72 68]

El 21/1/2020 a las 9:13, Karani dijo:

Es raro que diferentes criptoactivos bajen de precio juntos. Cuantas más clases de activos invierta, mayor será la posibilidad de obtener excelentes rendimientos de una de ellas.

Yo creo que no tienes razón, la mayoría de las criptomonedas bajan de precio cuando cae bitcoin, hay que investigar bien de la misma manera para no tener pérdidas, aparte están las shitcoin que solo sirven para estafar ten cuidado

[ChupriN03 53]

Hi I'm beginner in this things, so i am apreciate your advice! i think that it's very good idea diversify your portfolio becuase is a good way to avoid one default of coin if it happends! so it's more safety like this! I will be reading and learning about more advices! thanks!

[Rosarvx 965]

storing a lot of currencies will lose you focus, so you should invest in the main currencies, altcoins are very volatile more than Bitcoin

[Rozy 1918]

You are right , it is good to diverse your investment , yet for me I think that three pairs are enough, it is hard to keep track of so many currencies, one will get lost, so three for me are good enough, if one currency has a dump the other two will compensate the loss. 

[MoralStories 1127]

when you have multiple investment say it depends on your profit and your loss that means it doubles your profit and loss to so if you have a lot of money you should choose the coins wisely in order to invest in them

[Msh9 84]

Yes, my dear friend, it is a great idea and we must all do it because bitcoin prices rise and fall dramatically, so we have to diversify the wallet to avoid making any mistake.

[Amna Hareem 1213]

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.

Dear you are right and it is really very important to look the prices of all trenches first and whenever I am doing trading and investment I first look the price of all the coins and everyone I think first check the price but I am a newbie here and I am just doing trading because I don't have enough knowledge to do out think and I am earning a really good profit throw trading and I will also try other things.

[Farukatie 1271]

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.

Yes my friend you are very right that we we should invest in different cryptocurrencies that if ones price is less and the others prices hike then you would not get lost and earn some good profit in this way you can save your money and earned profits easily.

[Quickbee 26]

Investing in one or two coins is risky. If the prices of both coins fall then you will suffer losses. But if you have invested in several coins then it is rare that the prices of all coins falls simultaneously. This will help you cut your losses and good for long term.

[Samotokika 1780]

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.

Yes dude we should be Very vigilant on this thing and can check the prices of the coin before making mind to invest in it and yes more than one assets would help you to recover the loss if happens,or gets you to good profit.

[Afreen603 307]

it's a good idea to diverse your investment in cryptocurrency.every coins has different price increase which you can make more profit. 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 .

[Oki 675]

In my opinion, the more coins that are traded, the less we focus on trading. Better to use two pairs of coins is better, because we know that the increase in altcoin price is influenced by bitcoin so we just need to focus on bitcoin. Other pairs can use ETH and LTC as a wider portfolio.

[DC71 169]

Crypto market is very volatile it is very difficult some time for trader to make profit in volatile market. Price goes up and down in quicktime and you can focus on your trading. You get huge loss in trading so when ever you start trading always make your mind clear

[Flash009 345]

This is a good idea if the market is bullish. Yet you will want to better hold a large percentage of your money in Bitcoin, which saves you a lot of trouble when things go wrong. Altcoins usually go down a lot more when the price of bitcoin starts to go down. 

[Jack764 1841]

Portfolio diversification is necessary, so that if the wallet is lost, your loss will be minimal and thus you have distributed your money to more than one wallet and more than one currency note.

[pax166 0]

It is good to diversify your portfolio so that you do not put all your investments in one place. This is a strategy to minimise risk of loss. Because a loss in one investmnet will be covered by a gain from the other Investment. So it is good to have an indept knowledge of the coin pairs before investing in any of the coins.

[Syedbesharat 5423]

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.

I have my portfolio diversify because I don't wanna miss the earning opportunity I have in holding TRX, XRP, BTC, BTT, ETH ZEC, ZILL, WATER in all many of them. So my portfolio goes in profit whenever I check. Their for for avoiding losses by one investment it's better to split in different coins. This way you will not face dumping .