Diversifying Your Portfolio in Crypto

[indianCrypto]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.


So what would be the right strategy of Diversifying Crypto Portfolio

[WalletInvestor]

Diversifying your portfolio is not about whether you can predict market movements but more about keeping your risks on the lower side. The idea is that a bigger part of your investments should be in lower-risk assets (if we're talking cryptos only, that means top cryptocurrencies, preferably top 10 by market cap) and a smaller percentage of your portfolio can be divided between higher-risk cryptos if you want that, such as smaller and newer coins and tokens. This way, if for example one of the tokens you have invested in completely crashes, your capital will not suffer excessively because there are the other investments that can keep it going.

[CryptoboyRamesh]

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "

But how we Apply these rules in Crypto Market.

When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.


So what would be the right strategy of Diversifying Crypto Portfolio

Not all altcoins is dependent on Bitcoin price movement. Some of them are in opposite trend to Bitcoin during dump, It depends on how the community of the project support and value the project. Most of the supporter of coin usually consists of just traders that's why it was weak everytime Bitcoin showing a strong selling pressure.

Diversify portfolio is good but don't do it on a bearish market because it will just hurt you badly. Diversify when the market starts to recover. When market is in bloodbath its much better to change asset to stablecoins.