Great suggestions. The diversify and reinvest is sound for the passive investor.
To me, it all comes down to research. If people would research what they are into, they would fare better.
At present, my main token holdings are BTC, ETH, LTC, BTS, STEEM, and another coin that is being introduced shortly. The later three are projects I believe in and follow very closely.
Recently, I took some off the table in both BTC and ETH after nice run ups. I dropped my BTC holding about 1/3 and my ETH 25%. In terms of percentage of portfolio, BTC is no longer my largest holding, it dropped to 3rd and moving towards 4th. Ironically, the run up in other tokens helped to rebalance my portfolio (along with additional capital).
As much of a loudmouth blowhole that he is, one thing that I like which Cramer said, if you cant spend at least an hour a week on each stock you own, you shouldnt own them.
I believe this with coins..if you cant spend an hour a week studying what is going on with each of your holdings, do not own them. Things can change very rapidly.
No doubt about it. It happens all the time, if most of your picks are good picks! What's really nice though is when they rally at different times and you skim off the current winner to "average down" on the laggard that turns out to be the next pump that you skim off to reallocate into the next pump, rinse and repeat. It doesn't always happen so perfectly, but it happens often enough to make you a real believer.
Man, that Cramer wisdom really has me thinking. Seriously.
Just between you and I, @cryptographic, in the stock market, I am not big on diversification. To me, it breeds laziness. Besides, if the market is going to get hit, diversification doesnt help much since all get taken down. I prefer to study what I buy and keep on it until it gives me a reason to sell.
In crypto, things obviously are less certain. We are at such an early stage, few can predict who will make it and who will not. There are plenty of terrific blockchains that will fail due to lack of capital, or more likely, lack of blockchain talent to overcome the hurdles that will come. Expertise in this field is still rather limited due to its infancy. For that reason, diversifying is good. Having all of ones money in a particular token is a bad idea. No matter how good it looks, it can still collapse.
That said, I still feel very comfortable with the BTS and STEEM connection. To me, these are going to be my true winners in 2018. In fact, both are running of late so maybe the Church of Dan is starting to be recognized.
Thanks as always for your replies and interaction.
I agree with everything you say, well, almost. I diversify with stocks as well since you never know when one good one might take a hit for missed earnings or whatever. You're right though about all of them getting hit when the general market gets hit, but some more than others of course. That's why I'm way underweight right now - with stocks currently floating on air, I see a very negative risk/reward there. However, a sell-off will come sooner or later, and I imagine that will coincide with a need to take profits in crypto. When stocks are down 50-60%, I'll be a buyer again, and most likely my portfolio will be demanding it too!
Hopefully it coincides with another 200x gain in your crypto portfolio.
😂
Let's hope so!
This is really a big topic of discussion. It has been noticed lately that everyone speaks about it all and draws attention, but the majority have one result
Everyone is free to take his decision
And finally thank you for putting this interesting topic I benefited from your article I did not know my greetings
@taskmaster4450
@cryptographic
Yes it is a big topic of discussion and something that often gets left aside exactly when it should be front and center.
Yes bro
This is the thing I like most about you
And stirring up a stirring sparkling leader
@taskmaster very right what you are saying! "If you cant spend an hour a week studying what is going on with each of your holdings, do not own them. Things can change very rapidly."
ANd something to add with crypto is that a week in crypto is like one year in the real world as most people know now.
Regards, @gold84
The great thing about crypto....
You spend a week becoming an expert and the rest of your life trying to figure out what is going on.
I was so sure I understood exactly what was going on when I tried to day trade a few weeks ago. Three good trades and one very bad one later, and I was down nearly 30%. Then I sold most of my BTC before the futures came out because I was sure it would crash. I have no idea what I'm doing. Now I'm content just leave my fun money in there and I might look at it in a year or so.
And I recommend doing that with a balanced portfolio and keeping some dry powder for future purchases at bargain prices on the correction that's coming sooner or later.