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UltraChief

How much altcoin diversification needed?

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Hello everybody,

We are in this crypto space for sometime now and all of us are acquainted with different altcoins apart from bitcoin. In popular investment strategies we see people talk about diversifying assets for the maximum benefit. Is this also true for crypto?

When we talk about diversification of assets the first thing that comes to our mind is altcoins and ICO tokens. Its not that they will be as big as bitcoin but they have some potential and a possible long term value if you are early investors.

Again there are so-called "bitcoin maximalist" who prefer to keep their bitcoins close to themselves and stay away from any altcoins.

I personally feel that we can spend upto 10% of our bitcoin holdings into altcoins. However holding altcoins is always a bigger risk than bitcoin and potentially good reward if they do well. So there comes the risk vs reward scheme.

  • So do my fellow primedicers feel that they need to diversify their assets specially into altcoins in a bear market, Or be the Bitcoin Maximalist?

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I believe altcoins aren't just a requirement. Being Centralised o'er BitCoin and being highly dependent on it can be fatal for the Crypto-economy. Just like any other , gigantic systems any where in the world , BitCoin too needs decentralisation in the form of AltCoins and ICOs for a longer run. No one in my opinion could guarantee the permanency of BitCoin and it's development in the later decades. We could never guess when the Global leaders decide to take on this and turn the tides over , and so that BitCoin would vanish like it never existed. Having decentralised over the altcoins , could make it to a bit less vulnerable to its extinction.

I though for myself , do not hold much of altcoins , But I am looking forward to investing them in the near future. Greater the diversification of your assets , Lesser would be the harm. :)

 

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Thanks for the comment @UchihaRaj, you see you have certain concepts wrong here which was the reason I made this post. Let me clarify some of them.

1 hour ago, UchihaRaj said:

BitCoin too needs decentralisation in the form of AltCoins and ICOs for a longer run.

Altcoins and ICOs are not the mode of decentralization. They are like "forks" of an existing system.

1 hour ago, UchihaRaj said:

No one in my opinion could guarantee the permanency of BitCoin and it's development in the later decades.

It has been mathematically calculated that the energy taken to take over the network is immense and thus the network is safe for attacks. What the future holds is uncertain but we will see.

1 hour ago, UchihaRaj said:

We could never guess when the Global leaders decide to take on this and turn the tides over , and so that BitCoin would vanish like it never existed.

Bitcoin is censorship-resistant. No human being can stop it. Literally. :D The only sane way of stopping it is by taking down the internet because the internet is centralized. Again we have people getting a decentralized internet prepared. So then bitcoin would become unstoppable.

1 hour ago, UchihaRaj said:

Greater the diversification of your assets , Lesser would be the harm.

And more is the risk and panic for those who are less knowledgable about managing their investments.

I hope I could clear some of your misconceptions here. I hope to hear more from you all. 

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Just now, Nanoluna said:

Any possibility to connect or connect the primedice with masternodes or tokens? I'm asking this because I'm looking at these things.

Probably not. Though you could raise this as a suggestion here :https://forum.primedice.com/board/43-primedice-suggestions-criticism/

Which tokens and masternode coins are you interested anyway?

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Bitcoin is too rich for my blood.  I keep three coins because I wanted to have at least a hundred bucks each, otherwise I would grab a couple more cheap coins with good community liking.  But lately I'm just going heavy on doge and probably selling if the go up 2x or more.

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2 hours ago, dicyprime said:

Bitcoin is too rich for my blood.

Perks of being an early adopter is that you can take advantage of the future rise in price. :D 

2 hours ago, dicyprime said:

I keep three coins because I wanted to have at least a hundred bucks each, otherwise I would grab a couple more cheap coins with good community liking.

Which three coins are you hoping to buy? Why do you think community liking is important here?

 

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I think it's much better to diversify a portfolio than "putting all your eggs in same basket". I believe that Btc can rise more in the future but to be a "BTC

Maximalist" is not the best way in my opinion, so i think best option is to invest in some promissing altcoins or ICO's after doing your own research ofcourse

For example you can diversify your portofolio like this: 50% Btc and the rest in altcoins, ICO's.

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I have always been Bitcoin Maximalist till few months ago. Simply because i did not think investing in Alt Coins was worth at all.

After getting some additional knowledge researching on the internet, reading some white papers, you know, getting some informations behind everything and how it is working on behalf of some of the alternative crypto markets... I was able to realize how much you can win and lose from them.

If you have the guts to do so, feel free, of course you can still proft from those alts that are active and have some volatile prices. Just don't go for dead coins else you will lose your investments.

You can also make use of the most used ones (Ethereum, Bitcoin Cash and everyones Primedice is using at the moment) considering they are like Alt coins but will probabily become not so called as alts anymore due to so many popularity during the course of time.

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