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RE: Crypto Trade Alert: Trustcoin Could Be A Buy Today (Video)
The Blockchain is a great technology and for the time being we can expect that emergent nature of the community will overcome all the bans, governments and restrictions and to continuously change technology on its way.
Having said this it's very difficult to bet on the right crypto, which one will be the one that will solve the specific issue of the moment?
My suggestion would be to:
- yes spend time to select cryptos and tokens, look at graphs and read about teams and regulation
- but always maintain a portfolio of cryptos so that you are not too exposed to idiosyncratic risk
For those interested I wrote a post on the gains from diversification.
CryptoPortfolio - Simple trick to increase returns by 8% per year
That is a sound strategy, I can mention that I only use 5-10% of my crypto capital for short term trading.
For the rest I have a 5 year time horizon mindset.
Thank you for the reply!
Then it would work even better: this only works if you have a long term perspective and rebalance the positions to the original weights at a regular intervals (say every week or faster if necessary).