How Do You Diversify Crypto Investments?

[saoussen5765]

As you know, the crypto market is currently in a decline in performance and price, not even that long ago, the price of Terra LUNA crashed to almost zero, even many LUNA investors (both retail and whales) lost. Binance exchange also lost at least US$300 Million. Personally I also lost about 6% of my total crypto investment.

Many people say that the current state of cryptocurrencies is not stable, so it is very important for us to diversify crypto investments so that we can minimize risk. In addition, if we divide the investment into several crypto's, it will make us more familiar with several cryptos.

Although there are many crypto diversification strategies or methods, I prefer to use crypto types, meaning I choose crypto with a high market cap such as Bitcoin, Ether, BNB, Ltc, Solana, Cardano, Polygon. How about you?

 

[Suba]

Especially in crypto, I prefer to use diversification based on investment value (or total investment amount), because it is simpler and easier to implement. Currently I only have 3 types of crypto that I invest in, namely Btc, Ltc and Solana.
I think too much diversification will be a disadvantage because we hold almost the same amount for each coin. Don't forget when buying crypto to always record the costs incurred such as exchange admin fees, blockchain transaction fees as well as VAT.

 

[Shaf]

After losing funds by the so-called diversification by more than 90%, I think it's safe to say that I won't be doing the same thing again. I would rather hold Bitcoin only or Ethereum than other coins.

I would trade them, but not hodl considering that Luna, a large cap in the top 10 could go as low as it did.

Also hodling other coins when Bitcoin is In a choppy or bear market is one of the worst things a cryptocurrency investor can do, but many people did not realize that until it was too late. While holding another coin could leave you down more than 80-90%, holding Bitcoin will just leave you with about 10 or 20 percent loss.

If you want to diversify, know when to cut your losses in any coin no matter how good it's fundamentals are.