Does It Matter to Diversify in Crypto?
TL;DR Version: I think it only matters for either very new currencies, or in the very long term between blockchains that have fundamental differences.
From a day to day standpoint, however, Bitcoin (and it's hard fork brethren) control more than 50% market share. Which means that every other cryptocurrency's value goes up and down as Bitcoin goes up and down. So at the current moment, there really doesn't seem to be too much difference in which cryptos you choose.
Hopefully this changes, and from a market standpoint, it will make for a more stable overall market if no one currency/coin has that much impact on the market. I wonder with ERC-20 tokens, if their value will be begged similarly to Ethereum, and if so, will that simple lead to more of this type of valuation?
Definitely let me know your thoughts in the comments. I'm certainly no expert, so I am eager to hear more well-informed opinions on the matter.
And shout-out to CryptoCandor for her awesome videos about specific currencies, definitely helped inform some of my thoughts here.
Check her out on steemit: https://steemit.com/@brandneweyes
And on her YouTube channel: https://www.youtube.com/cryptocandor
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And I'll be coming back with more videos, more closely focused on Steem/Steemit-like platforms in the future as I'm more expert in Social Networks than I am in crypto/economics.
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I think I have done better diversifying by not having all my eggs in bitcoin basket...and I think its at point or close to point in coin development stages....as suggested...that some coins have begun to differentiate themselves form bitcoin.
I think you're right that, because of all the transaction times and fees for bitcoin, the market is growing increasingly wary of investing in more btc. Fingers crossed this trend continues. For me, "diversifying" has helped mostly for speed and cost of any transactions I wanted to make (like buying more STEEM or SBD).
Through diversification, I have been successful in building upon my Bitcoin position by selling percentages when they pump. It is kind if risky admittedly but has worked so far.