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After the blood bath today, I'm sure that a lot of the determined crypto investors are wondering what could've been done to better prepare for the massive market crash today.
If you don't know by now, in great parts this sell off was due to Chinese government trying to further block any crypto activities (this time it was peer to peer transactions).
Another factor to the panic today I believe was some socio-economics trend such as the Chinese New Year. If you look at the historical trends this happens every year in January.

Now, what the unexperienced investors do is sell during the dip, some give up and others just blame it on bad luck and never come back. What the seasoned investors do is, instead of selling they are buying! But how you might ask, when everything was down? Does this mean that they cut their loses from one crypto and buy into another? No! They did their homework, they seen this before and now they are better prepared!

In a day like today I realized that part of the diversification of the portfolio should include a good old fiat ($). Yes, the same $ that is depreciating every day and that has 0% chance of going up by 20000% in 2 weeks.
However, this same $ has still one property that no crypto currently has and that it is very stable. Always having stable funds is basically betting that there will be a crash and when that happens you re-invest and buy everything on 30-50% discount instead of HODL and not be able to do anything with your investments until the market re-bounds.

Therefore, after the markets recover I will re-balance my portfolio as follows:

30% in USD/USDT - this will be the reserves used as means to take an opportunity from any particular crashes.
30% in major cryptos (ETH, LTC and Monero) - these will be the less risky, minor growth and long term investments. HODL these!
30% in alt coins (XRP, PRG,STEEM,etc) - these will be shorter term, higher potential for growth and more risky investments
10% in ICOs - these will be the riskiest investments yet with the higher potential for growth

Now the key to all of these investments is to also take the time to research and identify which ICOs and alt coins have future and are worth investing. Basically identifying what to invest in is crucial since if you buy into a crypto with bad fundamentals then nothing can help you.
I’ve you identify which alt coins are worth investing, then you have to be patient and apply some day trading techniques to get on these at the right price points (buy low).

For the ICO's do your due diligence and make sure the business idea, plan, team and advisors are top notch and worth the risk.

Last but not least, is after every trade you need to keep an eye on the balance of the portfolio and constantly maintaining it. An important peace of the balancing should by continuously raking some of the profit from the top. Some of the profit should then be used to refill the fiat($) part of the portfolio and certain percentage if not all should never be put back into the market, not until you recover your initial investment. This way even if all is lost you had your initial investment back.

Here are some additional ideas on diversification
https://medium.com/@shanif/crypto-diversification-believe-it-or-not-you-actually-make-the-most-money-in-cryptos-when-you-29972f5141b

Please comment and let me know what do you think? What is your strategy? What has worked for you?

Important! Register with multiple crypto exchanges so you can leverage their different benefits:
https://www.coinbase.com - Purchase Bitcoins, Bitcoin Cash, Litecoins or Ethereum with USD ($) with both credit cards and checking accounts.
https://www.binance.com - Offers various different alt-coins and and does not mandate user identity verification.
https://cryptopia.co.nz/ - The biggest selection of alt-coins
https://www.kucoin.com - Offers the crypto coin KCS which pays dividends to its users.

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