Diversify! Diversify! Diversify! are the cries I seem to hear many times over when it comes to cryptocurrency. It seems like everyone on Steemit preaches this at one point or another and it is solid investment advice right?
Looking at the bloodbath that is the crypto market at the time of writing this one would think no, that's NOT a good idea...
You could easily argue that the price of most Altcoins mostly follow what is going on with the mighty Bitcoin. If Bitcoin is down a good percentage, then it seems most of the Altcoins are also down. When Bitcoin is up, Altcoins also mostly up. While this is not set in stone by any manner, it does seem to be a trend that I have noticed in my time in the cryptoworld.
Bitcoin certainly sets the benchmark for many things so maybe the best idea is to only buy Bitcoin? I decided to diversify the small amount of Bitcoin I transferred to my Exodus wallet recently (see my post on Exodus Wallet here), and pick up some Ethereum (ETH) and also some EOS. While you may have heard of Ethereum recently, EOS is based off the similar technology but goes a few steps further as a development platform for "Decentralized Everything" as their website says.
I picked up a good amount of EOS ($50.00 worth) as it was at a decent monthly low trading spot yesterday (as are many cryptos, go buy!). I bought the ETH a few days ago at around $220. Today both are DOWN! This is the point where some might panic and think "Diversifying my Cryptocurrency portfolio was NOT a good idea", and even with my small recent loss I would still cry DIVERSIFY, DIVERSIFY, DIVERSIFY!
The reasons I still support diversifying your portfolio are a few fold and here they go:
- I never put all my eggs in one basket. I apply this to all that I do in business, and many places in daily life (not when it comes to my girlfriend though! ha!)
- I am all about the HODL. Holding your investments always seems to be what pays off in the longer run. Many of these diversity purchases I will just sit on for a year or more.
- Diversifying also allows me to learn more about the Crypto world. As I join more sites and research more great blockchain projects.
- The Majority can't always be wrong. I have heard the "diversify your portfolio" phrase SO many times when it comes to investments. From people I trust, to strangers, to people I pay to manage money. Still a risk, but the percentage swings my way I feel.
As always, make sure you do your research about any new project you want to support and try to support the ones that you really feel will make a difference. I will continue to diversify here and there when I see good deals and keep posting my progress.
'Stache it till next time!
What do you think about diversifying your portfolio of cryptocurrency? Have a story to tell, leave a comment!
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