Why You should not Invest all your money in One Coin (Steem, Bitcoin, Ethereum ): Diversification + Patience are important
Whether it is your personal life: relationships, jobs, aspirations or investments –you should never put all your hopes in one place. Remember the adage: Never lay all your eggs in one basket? Time and time again, many people get burnt because they put all their hopes on their partner, parents, friends, boss or even on an investment. Even though some are lucky with this strategy, many people, however, lose everything due to lack of diversification.
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Jobs + Crypto: some people quit their job after earning some money on steem and or any other cryptos in order to focus 100% on steemit and or other cryptocurrencies. This is a good strategy if you have a big wallet and diversify. However, those with smaller wallet should be careful because crypto prices are highly volatile and thus someone can easily lose value of his/her investments. Therefore, keep your job and combine both until you are comfortable with your crypto earnings.
Related and unrelated industries: In diversifying your portfolio you can chose some undervalued tokens/ coins –examples, steem and elyte ( see www.elyte.tech) and then (if you have spare cash) invest in silver, gold, oil, real-estate and some good tech stocks . This strategy will help you to hedge yourself from external risks.
Patience: This relates to having control over your emotions and think long term . Remember that platform lie Steemit and most crpyto´s are not HYIP scams, therefore focus less on the ups and downs of daily crypto price, do your due diligences on the tokens/coins you want to invest and do not invest what you can’t afford to lose.
Do you agree? Send in your comments . Resteem in order to reach more people and upvote to send in your support.
Click here and read my former post:Will steem blockchain be the future of porn and adult publications ?
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For sure this is sound advice! It drives me crazy to hear people say you should put all your eggs in one basket and watch that basket. I’ve come to understand that as two different things. One is for wealth preservation and the other for accumulation. Thanks for the share!
Good point, I agree with you. Thanks for your comment
Hedging your risks is a good one especially in an uncertain crypto market...therefore I agree that diversification in related and unrelated industries is a good strategy . Thanks for sharing
I must confess this to be the best post I have seen today. I totally agree with what @charles1 is saying here. I would have been in a big shit by now because at some point last year when bitcoin hit $18k, I used almost everything in my bank account and got volumes of BTC, imagine what would have been my fate now if not for diversification. I had to calculatively trade some selective altcoins like WABi that gave me 10× and I was able to recover back my investment.
Man, permit me to resteem and follow you, my followers need to see this too.
Bravo.
Great to learn tha you diversified ..I wish you more success and permission granted.
Thanks for your thoughtful comment and more success to you.
you also need to dollar cost average into your coins for another layer of protection
Good point, thanks for your comment
That's right man! You know diversification is in my wheelhouse. Need to spread risk, it's truly the only free lunch. And it needs to be done within an asset class and across asset classes when it comes to investments.
Good move buddy, more success to you
Hmmm sadly almost all coins are chained to the ups and downs of BTC. Sure it's a good idea to diversify the investments but if almost the whole crypto market correlates more or less with BTC you are also screwed if you rely to much on these investments.
Diversification must not be underestimated!
Although following the news is important, we must not get caught up in fud if we wish to make it in the long run. Patience is key! If our research is sound, hopefully our investments will pay off 👌
Welcome ,good point indeed and thanks for your comment
Los grandes ríos son grandes porque tienen muchos afluentes, riachuelos y quebradas que desembocan en ellos, la naturaleza misma te lo dice que el secreto de la abundancia es la diversificación de los ingresos, pero nos cuesta ver lo evidente. Muy buen post Gracias.
The great rivers are great because they have many tributaries, streams and streams that flow into them, nature itself tells you that the secret of abundance is the diversification of income, but we can not see the obvious. Very good post Thank you.
Welcome and good comment indeed
No one should put even their hopes or dreams in one basket... it becomes too heavy.
Hahah well analysed my friend...thanks and more success to you
I always keep in my mind, sir @charles1 that I should invest on what I can afford to lose. I don't care about the ups and downs of the SBD and Steem value, I care about the future of altcoins and foresee that they will be bigger than today so I will keep on steeming. I am trying to join some other legit websites for crypto claiming and if I could earn some in the future, I will invest them on here.
Point, more success to you.
Thank you, sir Charles.
Thanks @charles1. That was well written with much clarity. I'm learnin g a thing or two about diversification in my life.
Welcome and more success to you