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Diversity in Crypto Investment

  • Thread starter Thread starter BrolySSJ
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BrolySSJ

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There are many people that are getting into cryptocurrency at the moment and there are many more that are diving head first into these coins seeing the profit that other people have made. Here I just want to share an important lesson with all the crypto users, and those that are new to the investments as well, and that is to never invest all that you have in a single coin no matter how well the coin may be doing. It is always best to diversify and invest in many coins, therefore the loss that is made on one coin can be made up by the profit in another coin. This is something that I did in my earl stages where I invested in one coin, and I ended up losing over 100 dollars, due to my greed. Therefore, it is very important to invest in multiple coins that are strong and show promise, no matter how good a single coin might look.
 
Most of people loses when diversifying the investment as the new coins aren't trustable or shitcoins or could badly end by scamming buyers and this happens but for old coins like ripple or XRP or TRX then it is fine.
 
It's something that we only learn with experience. I would also add that one should not diversify excessively, especially when new. Shitcoins and low cap coins can be attractive but can return to zero equally fast especially if a bear market hits.
 
I don't really subscribe to diversification in cryptocurrency because of the risks that is involved in this type of investment.
 
If you want to benefit from crypto investment, you need to diversify your portfolio. You need to invest in at least a dozen different crypto assets. If you invest in meme coins, you also need to invest in something like BTC to minimize the risk.
 
BrolySSJ said:
There are many people that are getting into cryptocurrency at the moment and there are many more that are diving head first into these coins seeing the profit that other people have made. Here I just want to share an important lesson with all the crypto users, and those that are new to the investments as well, and that is to never invest all that you have in a single coin no matter how well the coin may be doing. It is always best to diversify and invest in many coins, therefore the loss that is made on one coin can be made up by the profit in another coin. This is something that I did in my earl stages where I invested in one coin, and I ended up losing over 100 dollars, due to my greed. Therefore, it is very important to invest in multiple coins that are strong and show promise, no matter how good a single coin might look.
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I am one of those people who are investing in cryptocurrency and I also trade at the same time
 
Its better to invest in different crypto currencies because what if we invest $500 in LTC and its value goes down so invest in at least 2-3 crypto coins
 
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