What is the worst thing that can happen when you diversify?

[Byebyebtc]

From an investors point of view. Do not stack all eggs in one basket, eventually I have seen many comments from members here and outside this board talking about about having Bitcoin as the only asset for investment. It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

Irrespective of how we trust bitcoin, i feel there are advantages that comes with diversification. Diversification is a risk management strategy. It helps reducing the risk of losing out on one investment. This means you will have more stability for holding onto your bitcoin even during potential drop in price.

What is your thought on this?

[Karl_3000]

I only hold altcoins for short time profit and I will sell them if I see the profit. 99% of altcoins are shit coins which are not good for holding except you want to lose your money. Altcoins have taught me lessons many times, this is an example

https://asktom.cf/index.php?topic=5560230.msg65846920#msg65846920

Altcoins can be good but you need to make more research and risk reasonably.

[Coyster]

Nobody discourages you from diversifying, that is buying other assets other than bitcoin, actually you are even encouraged to do that. No smart investor keeps their funds in one investment, you can buy treasury bills, bonds, gold, silver, shares, etc.

That said, what many crypto enthusiasts erroneously regard as diversification is buying bitcoin and then a shitload of shitcoins, that is not diversifying, it is basically a recipe of losing money to those shitcoins you are accumulating. Yes, chance dey say you fit dey lucky, but the chance dey very small, so e better say you just buy bitcoin and other stuffs wey no be crypto, real estate na another good investment.

[Doan9269]

It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

There is nothing bad in deciding to diversify in crypto assets or even on other profitable investment, all you must do is to ensure that you know what you're doing and take this precautions.

1. Don't create vulnerability to your crypto asset.
2. Have them on a non custodial wallet
3. Invest on other assets that are profitable
4. Manage your investments and take control of their security.

[Donk1]

Op in my perspective I believe that the very concept of diversify in Bitcoin is to simply reduce stress, panicking, and fear  of market  volatiility because it  could probably make an investor sell at the wrong time and I believe it is only wise to diversify in assets that you know have real value.the worse thing that could probably happen in one's investment is if the person doesn't use the diversifying strategy.

Furthermore  let me just say  when you diversify as an investor it will give more chances to win and less chances of losing your money That's just it . it all lies in the very principle of Diversifying.

[justinlamode]

When you say diversify, are you implying spreading your money into Bitcoin and other altcoins? If that is what you mean, I will suggest you exercise cauti about diversification. on because that practice is dangerous and can make you poorer and very fast too. If you want to make it in this business, simply focus on Bitcoin over a long period of time and forget about diversification. But if you must diversify, then consider only the established altcoins.

[IceLincoln]

I don’t think there’s anything wrong with diversifying your investments but sometimes in diversifying we get it wrong by investing in a riskier venture. Yes someone who has reached a level of over accumulation in bitcoin can decide to gamble with a small percentage of his discretionary money into Altcoins or shitcoins, he can do this because he can afford to but you as a newbie investor can’t so in diversifying you should consider something with more stability and security. As a Nigerian you could consider Real Estate, Gold or even starting an agricultural venture ( there are so many things you can do in this field that are profitable).

To answer to your title, it depends on what you diversifying into, in a worse case scenario you lose your investment or don’t make as much profits as you wanted.

[DaNNy001]

I agree, there's nothing wrong in having other investments  asides from bitcoin...if you are thinking of investing in altcoins then you are on the right track but you need to understand that altcoins are highly volatile and you need to be careful about what you invest in, it's important to carry out proper research before you buy any altcoins...Everything depends on your plans, all you have to do is give yourself targets

[liasbaa]

From an investors point of view. Do not stack all eggs in one basket, eventually I have seen many comments from members here and outside this board talking about about having Bitcoin as the only asset for investment. It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

Irrespective of how we trust bitcoin, i feel there are advantages that comes with diversification. Diversification is a risk management strategy. It helps reducing the risk of losing out on one investment. This means you will have more stability for holding onto your bitcoin even during potential drop in price.

What is your thought on this?

Once you have gained experience and become a fully fledged investor, you can then consider investing in alternative assets. To get to that point, you need to be a long term investor, and that means you need to be a patiance investor. Bitcoin investors. Not putting everything in one pot means acquiring other assets and not just hoarding Bitcoin. Alternative assets refer to real assets, such as gold, real estate, or other real assets that will benefit you in the future. Many people besides Bitcoin may consider other digital currencies as alternatives to shitcoins, but those who buy shitcoins for short term gains instead of Bitcoin will be putting their assets at risk and their wealth will be more likely to decline over time.

[Obim34]

When you say diversify, are you implying spreading your money into Bitcoin and other altcoins? If that is what you mean, I will suggest you exercise cauti about diversification. on because that practice is dangerous and can make you poorer and very fast too. If you want to make it in this business, simply focus on Bitcoin over a long period of time and forget about diversification. But if you must diversify, then consider only the established altcoins.

Diversification not only refer to digital currencies, altcoin and Bitcoin. Diversification can be done into different sectors, owning businesses, buying company stocks, Real Estate. You don't put all eggs in one basket implies not investing under one sector of investment, despite what we allocate into Bitcoin, it is advisable to diversify strategically into any physical investment, another form of physical investment people don't look at is holding commodities that will profit under 1 year, buy and stock produce like oil, or agricultural farm products when its cheap, within a period of 1 year you will make double the profits while your Bitcoin investment will be in hold for a long period.

[icebar]

What is your thought on this?

Putting all your eggs in one basket is definitely risky, so diversification of assets is necessary. In the case of Bitcoin, I think there is no need for diversification, especially if you are committed to long-term investment. Generally, if you invest in altcoins, there is a need for diversification. If someone wants to invest in other physical assets such as real estate or other platforms after investing in Bitcoin, that can also be done. By doing this, he can reduce the risk to some extent. But I can never accept investing in any altcoin other than Bitcoin as diversification.

[Zaguru12]

From an investors point of view. Do not stack all eggs in one basket, eventually I have seen many comments from members here and outside this board talking about about having Bitcoin as the only asset for investment. It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

I don’t think anyone is actually against diversification of one’s assets because it is what actually helps to maximize risk. But there should be clarity on how diversification should be done, personally I don’t see diversification when you buy bitcoin and then invest in other Altcoins. For me this is not diversification because bitcoin which is invested in is the sole driver of the cryptocurrency market because the market follows bitcoin market trend as such other Altcoins are just followers meaning that should bitcoin actually falls or crash today none do these Altcoins can actually survive and this doesn’t mean diversification.

Diversification is when the market condition of the other asset doesn’t change or affects the other, so for example bitcoin market conditions doesn’t necessarily affects that of Gold any of them could crash today the other one will definitely be able to stay up afterwards. So my diversification means is invest into bitcoin and diversify into other assets outside the crypto space. This doesn’t mean I am against buying of Altcoins but it is not a means of diversification when you have bitcoin

[IjawMan]

Nobody discourages you from diversifying, that is buying other assets other than bitcoin, actually you are even encouraged to do that. No smart investor keeps their funds in one investment, you can buy treasury bills, bonds, gold, silver, shares, etc.

That said, what many crypto enthusiasts erroneously regard as diversification is buying bitcoin and then a shitload of shitcoins, that is not diversifying, it is basically a recipe of losing money to those shitcoins you are accumulating. Yes, chance dey say you fit dey lucky, but the chance dey very small, so e better say you just buy bitcoin and other stuffs wey no be crypto, real estate na another good investment.

Diversification is in having a list of other different investments instruments other than different cryptocurrencies what has been mistaken for diversification of investment in this side. Diversification should cut across different financial instruments for it to merit the term and not when an investor is holding bitcoin and buying altcoins as well

Your luck on making that buzz profit from shitcoins are 1% to 99% of your loss chances. Na hin make them di tell us no to di hold altcoins for long. You see small profit selling am fast make you no become shitcoins rug victim.

[Churchillvv]

From an investors point of view. Do not stack all eggs in one basket, eventually I have seen many comments from members here and outside this board talking about about having Bitcoin as the only asset for investment. It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

Irrespective of how we trust bitcoin, i feel there are advantages that comes with diversification. Diversification is a risk management strategy. It helps reducing the risk of losing out on one investment. This means you will have more stability for holding onto your bitcoin even during potential drop in price.

What is your thought on this?

of course diversification is not bad as it is perceived in all other discussions, but it is only bad when you do not have a good quantity of bitcoin then you decide to diversify only to end up accumulating shitcoins, or probably assets that are worthless than bitcoin. At this point diversification is not good but when you have enough, bitcoin as an asset or the main asset, then you can decide to diversify probably add one to the top 10 list of altcoins hence diversification is valid. Or probably investing in stocks, bonds or real estate. At that point diversification is the best thing you can do. Everyone has different opinion so don’t feel less of your opinion.

[Mhizlove]

From an investors point of view. Do not stack all eggs in one basket, eventually I have seen many comments from members here and outside this board talking about about having Bitcoin as the only asset for investment. It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

Irrespective of how we trust bitcoin, i feel there are advantages that comes with diversification. Diversification is a risk management strategy. It helps reducing the risk of losing out on one investment. This means you will have more stability for holding onto your bitcoin even during potential drop in price.

What is your thought on this?

Basically you're saying that bitcoin is outstanding and again I will say that it's risky to put everything you have into one asset. Despite how much trust people have in investing it's very smart to diversify because investment are spread all over different areas incase bitcoin falls you're not exposed completely, then you will have more greater security overall.

Diversification helps in the maintaining of balance and safeguard your investments from avoidable risks. But over doing it can easily backfire you and it will turn your protection into weakness.

[Cryptokuus]

From an investors point of view. Do not stack all eggs in one basket, eventually I have seen many comments from members here and outside this board talking about about having Bitcoin as the only asset for investment. It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

Irrespective of how we trust bitcoin, i feel there are advantages that comes with diversification. Diversification is a risk management strategy. It helps reducing the risk of losing out on one investment. This means you will have more stability for holding onto your bitcoin even during potential drop in price.

What is your thought on this?

Basically you're saying that bitcoin is outstanding and again I will say that it's risky to put everything you have into one asset. Despite how much trust people have in investing it's very smart to diversify because investment are spread all over different areas incase bitcoin falls you're not exposed completely, then you will have more greater security overall.

Diversification helps in the maintaining of balance and safeguard your investments from avoidable risks. But over doing it can easily backfire you and it will turn your protection into weakness.

exactly it very risky to put all ones income into one asset. To guarantee the safety of our assets and to reduce risk of losing it there is always needs for diversification, especially when it has to do with assets that is as volatile like bitcoin which means high risk. There should always be need to diversify some of our income into other assets. However I don't it will be wise for a newbie to be to think about diversification.

[Showlove01]

From an investors point of view. Do not stack all eggs in one basket, eventually I have seen many comments from members here and outside this board talking about about having Bitcoin as the only asset for investment. It got me wondering, what could possibly go wrong if after having a comfortable size of bitcoin in your wallet while diversifying into other asset outside of bitcoin and crypto in general.

Irrespective of how we trust bitcoin, i feel there are advantages that comes with diversification. Diversification is a risk management strategy. It helps reducing the risk of losing out on one investment. This means you will have more stability for holding onto your bitcoin even during potential drop in price.

What is your thought on this?

The fact that diversification has an advantage of risk management it also have a disadvantage that sometimes you can be distracted from what you are suppose to do in your other Investmen, diversification is a nice idea but it should not be done or carry out in the same field or category what I mean is that we should not be investing in Bitcoin and also going to diversify in any Bitcoin related stuff like altcoins and shitcoin to me it is a wrong approach because you seems to be rotating in same axis. If someone is into Bitcoin investment then they should look for something outside Bitcoin or crypto and diversify into.