Crypto Diversification of Portfolio

Dowenship

New member
First of all, what is diversification.
Diversification refers to allocation of your capital to different financial instruments within an exchange or wallet of potential asset. The purpose of diversifying your portfolio is to ensure that when one of your investment crashes the other investment cover up your loss. So in crypto currency, you can also diversify your portfolio.

Coin apart from Bitcoin is known as altcoin, and they range in size from large market-cap blockchains to small projects which can be new and some might have large market cap but old. Altcoins are often considered an essential part of crypto portfolio diversification. By investing in good altcoins, you can reduce your portfolio's from unplanned risk. Investing across different kinds of altcoin is a responsible investment plan. These kinds include platform tokens, stablecoins, DeFi tokens, even meme coins.
So which coins can you invest in to diversify your portfolio.
1. Ethereum: the king of all altcoin
2. BNB
3. Uni
4. Usdt/ busd
5. Dot. Etc.
 

minenovo

Active member
Diversification, if one can afford it, is always a good idea. It's not prudent to keep one's eggs entirely in one basket, so to speak.
 
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OP
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Dowenship

New member
Diversification, if one can afford it, is always a good idea. It's not prudent to keep one's eggs entirely in one basket, so to speak.
Diversification, if one can afford it, is always a good idea. It's not prudent to keep one's eggs entirely in one basket, so to speak.
Diversification is actually a gradual process most especially for an average earner, who's is yet to have the capability to afford more than one asset. But can save a lots of fund for investors and trades...
 
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Sotherefore

VIP Contributor
Wow this is just the first time I am hearing about this ,and I don't even know how it really work .most of the time I use binance exchanges to store some of my cryptocurrency and I don't know if diversification really work in binance because I've never heard of it. I really have to research more about it understand how it really work.
 
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Mihail

New member
You have right is very good do not put all your eggs in one place, my strategy is to invest only in 3 project like Cardano ADA, Ethereum ETH, Bitcoin BTC and also when I have chance to do daily trading or I'm looking for bullish flag short term. Less coin you have is easy to control them not finance advice.
 
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minenovo

Active member
I think both Bitcoin and Ethereum are pretty good investments if one knows when to invest, I have no opinion on Cardano though, since I don't know enough about it.
 
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Jupiter147

New member
You can diversify your portfolio by having 70–80 per cent of your coins be top coins and the remaining 20 per cent be top 50–100 coins that you believe have promise. A good portfolio allows you to profit when bitcoin is up and also when altcoins are down. To achieve this, you'll need about 20–30% of your portfolio in bitcoin and the remaining 40% in 2–4 coins, focusing on 2 of them. For example, I focus on litecoin and have about 20% of it, while bitcoin is about 15–20% during its dips and 25–30% when it's peaking.

good luck with your trading
 
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Dowenship

New member
I think both Bitcoin and Ethereum are pretty good investments if one knows when to invest, I have no opinion on Cardano though, since I don't know enough about it.
Cardano as been hyped recently this year especially but I haven't seen its potentiality and how profitable years to come..
 
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