Is it wise to diversify your cryptocurrency portfolio?
As I sit here pondering cryptocurrencies and what the future may hold I can't help but think about my own personal gains.
I'll be honest, at he age of 17 I got into Bitcoin in its infancy. I was using "that famous site" to purchase goods not normally found on the internet. Being almost 5 years sober, I now look back with clear eyes thinking "what were you thinking!"
I remember downloading a bitcoin miner on my moms computer. She had a Mac, which at the time I believed was the most powerful thing in the universe and perfect for btc mining. I was a broke kid and had no idea what I was doing. All I knew was that I could earn money keeping this thing running and I didn't pay the electric bill so screw it.
My interest in cryptocurrency faded as I matured. For many years, I associated BTC only with the "unmentionable site."
Flash forward 8 years and who other than my Mom writes me and says, "thinking about buying Ethereum, what do you know?" I look it up to find out it's merely another traded cryptocurrency that utilizes blockchain tech. This was my holy shit moment. Did blockchain blow up and I had missed out? I felt like the guys who sold his 1% share in Apple.
For 2 months now I've been active in the crypto community and I view all my transactions in crypto as investments in their future. If I can profit along the way so be it but my true purpose is to see mainstream adopt the technology.
But what if I did want to profit? What if I didn't care about the future of this tech and just wanted personal gains? Would betting with the market be the best choice? Surely one coin has to outweigh the others! (one coin to rule them all lol) How would I even go long on all currencies? To my knowledge there are no ETFs for cryptocoins.
What if one were to diversify their portfolio i.e. buy up a bunch of each crypto with market caps of $70M+? With indiviudal coins raising 3500% in 24 hours would this be the move or would you run into liquidity issues?
Listen I'm not a professional trader. I'm not a finance major or a guru in tech. In fact I can barely balance a checkbook! I'm just a guy who is fascinated by all of this and has access to the internet.
Enough of my rant.
Let me know your thoughts!
I'm laughing as I see the 3500%. I'm new in this space as well. And in April I bought my first bitshares. They were .009 usd. In June they topped at just over 30 cents. Almost 3500%.
If there is one coin you need, it is bitshares. It could easily do that jump again. Or to put it on other words: if there is one coin to do it, it is bitshares. More developed and better than most. And more and more jump on board. I would however recommend to diversify.
Interesting about BitShares. Isn't that the one that Mark Cuban is backing after he called the cryptocurrency boom a bubble?
I'm not sure who that is. Anyways: look into it yourself. Bitshares.org has plenty of information and there is daily tidbits released here on steem as well as a weekly report.
Thanks, I'll go "look into it myself."
For the most part, everyone in crypto is here for the profit. Don't kid yourself. If you talk to any seasoned investor about getting rich in this field, the plan is simple. Buy equal shares of the top 25 coins, 50 if you can afford it. One of them will hit and you'll be flush.
Going all in on one coin is financial suicide. Just imagine you went all in with ETH at $300. Then missed the top side.
We spread things out pretty well in the top 100 coins. We lose some, we gain some and every so often we get a hit like ETH at $400. Don't be greedy. Play within your means. And be prepared to be wiped out at any moment.
Crypto is not a game for the faint of heart. You need nerves of steel for this. Play long, play safe and enjoy.
I'm with ya. In regards to profiting what I meant was if the price of a specific crypto never went up and stayed stagnant I would be just fine with that. Profits are a secondary objective.
You're right though. It's not for the faint of heart. A friend of mine refuses to buy any crypto ever. He has the means but is self aware. He knows waking up to a 30% loss would crush him and he would panic sell. On the other hand I'm a bit more risk tolerant and have gotten more accustomed to the swings.
Thanks for the response :)
Those are the exact kind of guys that should stay away until there's more safety nets put in. Early adoption is often painful.
Happy to help!
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