There are several reasons why I diversify into Altcoins and don't just buy Bitcoins. One is the code base. Bitcoin and Litecoins share a large majority of their code. If some sort of exploit is found for Bitcoin then it could potentially take out a large portion of other coins as well. So I like to invest in coins with different code bases. The delegated proof of stake chains like STEEM, BitShares, EOS, and TRON have different code bases and so do the cryptonote coins like Monero and Bytecoin. I also diversify from the aspect of what it is used for. Just currency or if it is a smart contract platform or a transactional network like Ripple / Stellar. Even within currency I will diversify further down into Anonymous cryptos and DAGS like Nano.
Sometimes it is more about marketing than the underlying technology that causes these cryptos to survive or thrive but when I think about diversification a lot of times I mitigate my risk of some exploit being found in cryptos with the same code base. Bitcoin, Litecoin, and DASH have similar code bases but other projects like Monero, NANO, and EOS have different code bases from what Bitcoin is. The other way I look at diversification is from the aspect of what it is used for. If it is a platform play or if it is a pure currency play....etc. Then within currency I can drill down further and make sure I have some Anonymous coins. I have found that owning some of almost every project in the top 20 is best for me and then having most of my investment in the top 50 as far as market cap is concerned. Once in awhile I will own a project that is outside the top 100 but that is rare. It is hard to knock off the king of the mountain and those top projects have the most eyes on them. In a lot of ways they solidify their existence and end up on more exchanges and have higher trading volumes when they are higher up. I feel it takes part of the risk out that they are going to die or something.
Interesting Thoughts @brianphobos. I like many coins and I am just looking at entry points on some if the prices get weaker.................
It will be interesting what happens over the next couple of weeks. People are getting washed out hard and I'm lining up more fiat for purchases.
Thanks for the wisdom, Brian. Never hurts to diversify fer sure
For sure! I like to have a hand in all the cookie jars! lol
can these crypto going much lower than now before nxt year?
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I feel like they can because when the prices are falling that hard people are getting pressed out and then the other people who are bullish are scared to buy and keep mentally setting the level at which they are going to buy lower. Some of them will get it and others will miss out.
What is interesting for me is that once inside the crypto world, trading tokens is easy. Shapeshift, Blocktrades, Bitshares are all easy and don't need any paperwork.
(Getting into and out of cryptos is another story.)
I have diversified based on projects that i really like and feel will go places.
Dent will make a dent in cellphones... if they ever get into the bigger market.
Veri will change all the markets... if they just get past their first.
Neo will change the way people get paid... and it looks like the asian markets are actually starting to use it.
However, i have never considered the code base for diversification.
I will ponder about this.
The Bitcoin code base has been battle tested pretty hard but there is always a chance that the wheels come off the bus and certain code bases get exploited.
Sadly Shapeshift will be needing paperwork soon one day. I been using Flypme though much better for me
Which jungle are you currently residing in ?
A crypto winter jungle where only the strong will survive!
burn some fiat to light a fire and keep warm !!
It’s freaking scary to catch a falling knife but ya know what? YOLO baby!!! 😂😂😂
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YOLO is right! I keep going in hard. The money I put over to my Coinbase account better show up soon. That is such an annoying process. Doing Wires to Kraken is annoying as well.
It will be all worth it in the end though.
I’ve been investing in stable coins this whole year 😂
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It is always a good option to buy the top 10 or 20 Altcoins but if you do not want to worry much, just buy BTC and forget about it for a while @brianphobos