I did a lot of thinking about this question to be able to give a good enough answer.
Yes, I do think that there is a lot of truth in that statement. If you place to many bets, you will loose some completely, others will be break even and others will make a profit. Than it all depends if your profit is high enough to cover the losses from the loosing assets!
On the other hand if 2 or 3 of the coins really go to the moon and does increase 1000% or something like that, you could be a winner. But probably you will not have invested enough to cover the more secure bets.
As you can see, I a still in doubt!
It of course also depends on the bankroll you can play with. The higher this is the more risks you can take and the more diverse your portfolio you can become!
I personally have decided that I do own to many different coins, so I will try to downsize my portfolio to 10 or 12! It was @cicbar who did point this out to me.
I do want to keep track of my port and do want to know what is going on with the coins I own and the more different you have, the more difficult it will become to get a clear picture!
I was and am interested in so many coins but I do have limited funds so I do need to make choices!
@crypto2crypto and @cicbar you both are more wintered crypto investors than I am, could one of you be so kind to give a much better answer on the question of @tradergurl!
I could be interesting for you to follow both of them. Both have a great track record in crypto investments. They are not into trading like you are, but both are interactive!
Thanks for the long answer, appreciated.
I've been asking other crypto traders the same question to see what the general feeling is. It doesn't really make financial sense unless its 100% gambling, one day by chance one of the coins will take off so just buy a 100 different coins at random and pray.
To me, it's like betting on every horse in the Grand National, in the hope that the payout from the winner is more than what was spent on the other 39 horses :-)
I'm also beginning to think there might be a little bit of 'addiction' in there, I think some people just can't help themselves to keep buying more and more crypto.
For sure there is. Everybody is affraid to miss the next flight to the moon! Or even Mars!
Also confident that a lotof crypto investers did purchase coins without knowing what the business case of the coin is, what they roadmap is and so on ...
Luckily I dodged that bullet partially. I still fear that my initial investment isn’t enough to make a decent profit. Investing for instance 100€ into a coin will probably won’t make you rich! You will have a much better chance if you did invest 1000 into it!
So without knowing you did open my eyes and now I really have to re evaluate my portfolio again!
Mmh I will have to ask some experts their opinion about my portfolio!
Not that I will follow their advice blindly but to get an expert opinion and go from there!
Thx
I have a long term portfolio of stocks, much like a crypto person would have, but only in stocks I know about and understand.
But I constantly shuffle the portfolio, it doesn't make sense to keep badly performing stocks which cancel out any gains made by the stronger ones !
It's a bit like investing when you're in debt, paying interest on a loan or something. Those loan payments are 'negative interest', a guaranteed loss every month. So it's better to pay off the loan before using your money to invest. Just basic money management, I think a lot of crypto people don't 'get it'.
It makes me wonder, if 90% of stock traders fail, and 90% of gamblers fail, I wonder how many crypto traders will fail ?
@tradegurl this is a debate that I use to have with myself everyday lol.
I ultimately found that having too much diversity becomes tooproblematic for a few reasons.
When you put those factors together you will notice that you are more likely to lose betting on a bunch so so coins and are better of picking a few vetted quality coins that will grow steadily and allow you to pull your investment in a staggered form until all you are dealing with is house money.
Thanks for stepping into this discussion!
Thanks, it's rare that someone agrees with me :-)
I think half the time people trade crypto just to boast about how many different coins they have, because they sure as shit aren't making any money from it lol.
Nice to see some 'sensible' people for a change ;-)
We live in a funky stage of crypto where boasting and immaturity is the norm. Am I perfect no, but there are core principles that can be applied to all aspects of life one of them being humble.
With that you will never find yourself overextending and out of position.
I think it's because a lot of crypto traders are young and lazy, and think it's an easy way to 'get rich quick' :-)