Crypto Portfolio - Why You Should Diversify
For a long time, I invested in Bitcoin alone. After some time, I learned about Ethereum and it's ecosystem and despite the fees, I Invested into it. As time went on I learned about other blockchains and it's respective currencies and invested into them.
I learned about the crypto portfolio over a while that you should never stick to one blockchain coin. Diversifying is always a good idea and can save you a headache when the market starts behaving.
Why you should Diversify?
I remember investing into BCH heavily. And today when I look at the BCH, I notice that if I continue to put my trust in one chain alone, that would hurt my overall portfolio. So in situations like this, diversification is always beneficial.
I follow 25% formula for Portfolio. You may want to read about it and see if you can follow the same. That formula has been keeping me away from the headache. I wish to put that into the practice for a bit longer.
Iterating through Portfolio in Dip Times
Sure, market is in dip and we have to find out how to balance the portfolio. In such case going through your investment based on it's profit percent over the time through iterative way can be most useful.
Though not all people can follow this approach but if you try to manage this and put the portfolio into the regular cleanup approach, that would help you a lot. Work on your portfolio regularly and clean, move and improve the investment as and when needed.
When to Quit?
If you trust and it's progress then quitting is not really an option. Sure the mining may get banned the things would move elsewhere and continue at it's pace but through different means now.
Unless the BTC and ETH touches 1 USD, there is a life in the market and you would have hopes to invest and not quit. World is changing towards blockchain so quitting should not be your option.
What do you think?
My diversification actions may be small and slow but I try to diversify as much as I can and not depend on one chain alone. I make sure to adjust portfolio and use the stablecoins to take out the money when required.
How do you diversify? Have you diversified portfolio since the dip? What are some changes that you have made?
Posted Using LeoFinance Beta
Diversifying is a smart idea, but to a degree.
While I concur the idea of maximalism is not the best, going too far in the other direction is equally as dangerous. I see so many who have dozens of tokens they are trying to monitor and accumulate. It is impossible.
For that reason, I think after Bitcoin, which everyone should have at least some, one needs to focus upon 3 or 4 solid project he or she is optimistic about. That is small enough to monitor and stay up on while also enabling for protection if one or two does fail.
Posted Using LeoFinance Beta
Totally agree! Min. 4 or 5 to diversify.
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