Conventionally, diversification is a known strategy for business success and steady income generation or cash flow. There's a popular saying that goes thus, "don't put your eggs in one basket." Also, it is often advised by experts not to have just one source of income rather multiple sources should be created. You never know when which source will hit the rocks and if you didn't have other things to fall back on then, you see frustration. Still to add, the Holy Bible admonishes that we cast our bread on many waters for you never know which will make you rich.
The worst thing that can happen to you is being a maximalist. A bitcoin maximalist is a person who believes that Bitcoin is the only reliable or trusted cryptocurrency. As such, he doesn't adopt other projects nor invest in them. Yes, bitcoin is great but that doesn't mean you should invest in only Bitcoin alone; diversify your portfolio. Being a maximalist robs you of many other opportunities that would have brought you good gains. There are lots of cryptocurrency projects out there, research and invest on good ones and wait for their green days. One thing that I'm very confident of is that, no matter how valueless a coin may appear, it will always pump someday.
Another reason to diversify your portfolio is that it helps you manage your money and risk properly. It helps in cutting losses. Assuming you were a Ripple maximalist and you pumped in all your funds into it and then SEC comes to fight the project. We saw how XRP plummeted badly to the bottom during their crises even when the market was bullish. If your portfolio was only full of Xrp then, you must have recoreded a lot of losses. But if you had bought into other projects, even though Xrp dumped, you will still have gains from the rest.
Diversification makes us earn from different angles and it increases your cash flow. If you have a diversified portfolio, you can record losses all at the same time. When dump appears to be dumping, the others could be pumping. Same is applicable to the Hive Engine, there are a lot of gems there, don't only focus on a single project. Take advantage of other great projects.
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Absolutely! The biggest gains in the short-term often come from smaller altcoins, so it's smart to branch out and diversify. I agree 100%. :) My #HiveEngine basket includes LEO, CTP, INDEX, STARBITS, SIM, LIST, FOODIE, BEER, WEED and COM-- pretty much in that order. Joining tribes and playing the Hive ecosystem games is a good way to get exposure to different tokens.
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Smart! While saving up the top coins, you can just be scalping others to cash out.
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Indeed, a diversified portfolio is a balance portfolio. However, all investments can't be entered at one. It's a matter of priority from being a maximalist in One to spreading to many in the future.
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Yeah. You begin by investing in one and then spread to others.
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To some extent I have managed to diversify quite a bit my portfolio but haven't managed to make it too wide.
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At least you have diversified. I don't have so much either to diversify very wide..
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