Today I bought my first Ethereum, tomorrow Litecoin....Is it good to diversify with Crypto?
This past month I decided I was going to jump in with 2 feet and start to buy Cryptocurrency. I started with the obvious, Bitcoin. Then thanks to all your posts on Steemit, it built my confidence up to think that Ethereum was making a jump and soon going to be parallel with Bitcoin and some had suggested that it will pass Bitcoin. So with that in mind, today I bought my first Ethereum.
So I opened a Coinbase Wallet and thought that because it advertised that it was active in Canada and dealt with CDN$ it was a good way to go. However it would be nice if there was just one wallet I need, that will trade Steam, Bitcoin, Litecoin and Ethereum all with CDN$ in mind.
Now this is where I need your help. Do I diversify and buy some Litecoin tomorrow, or more Ethereum or just top up more Bitcoin.
Litecoin seems to intrigue me, with the momentum that it is building, especially over in China.
Where is your confidence right now my Steemien Friends. If you had $1000 to spend on Crypto where would you put it?
Thanks for the help and Happy Trails.
I would put 1/3rd of that $1000 on Litecoin, 1/3rd on Bitcoin and a 1/3rd on Ethereum. Maybe even 3/5 of it on cryptos and 2/5 of it on cloud mining contract.
Thank you for the advice. OK i got all of what you said, but the Cloud mining contract. I have heard so much about mining but absolutely know nothing about it, so I will have to research and see what that is all about.
do not put your money in a cloud mining contract. simply put, you will make more by just buying cryptos than purchasing a cloud mining contract
I'm all for diversification.
I've recommended to folks that get started on Coinbase - depending on whether it's available in their country - to either do 1/3 each, or 1/2 and 1/2 BTC and ETH.
Watch for a while, then move over to Poloniex, Bittrex, or Cryptopia and start trading. Don't be afraid of mucking it up a little - I sure did when I started.
There's also the automatic regular withdrawal option with Coinbase, where you just set it and forget it and do a little on a regular basis.
Go get 'em!
This is great information. I have a Bitcoin Wallet with a bunch of Bitcoin in it, but have not learned how to trade from my Bitcoin wallet with other platforms. It is all a bit confusing but gotta start somewhere, thanks for the help.
I would also recommend putting a small amount maybe 1/10 in other cryptos such as ripple or monero which could be rising up in popularity soon
With $1000,- I will probably buy Litecoin. Today Litecoin will be available on Bitstamp. I think it will boost it a little bit to $50/$60(in a couple of weeks). After that I would change it into Ethereum for long term.
Thank you. This is what I have read from a majority of you Steemiens helping me out with my choices.
Yeah definitely diversifying your portfolio is a very good strategy especially now that BTC looks a bit bearish.
Here are my thoughts on LTC https://steemit.com/litecoin/@wvm/is-litecoin-s-new-base-at-usd40-till-the-next-bump-up
Thank you for the insight and will go read your post.
If i would have $1000 to spend I probably would go 50% BTC, 25% ETH, 25% Litecoin. I think that BTC is there to stay, and in the long run it will just gain value since until the year 2140 (more or less) there will be a max number of 21 Million coins around because it is defined like this in the BTC protocol. For sure if in the future they would change that limitation BTC would loose value.. but until then it will just go up. ETH is just a great piece of software and I think it will have a lot of areas where it will be used, so for sure it will gain in popularity and value in the next coming years. Litecoin is more a gut feeling.. but it could happen that it gains popularity for a short time and then looses it again.. but.. at the moment it looks like a good investment.
Personally I have a bit of all of them and also STEEM,Dash and some more...
In general it is good to diversify because you want to minimise risks.
I am pretty new to this game.. but I see potential in so many areas at the moment, I think it is a good time to invest in general.
I also forgot, do not be alarmed if BTC drops around August 1. There will be a softfork happening that could cause some panic sales and make the price drop.. but also nothing could happen. Just be aware that the softfork is happening and be sure to have your bitcoins in your wallet and not on a trading platform when the soft fork happens. You can read more about it here: http://www.uasf.co/
Thank you. The majority speaks the same as you. Like minded people are awsome.
Simple answer - yes! Diversification is the key to a successful portfolio. You may get lucky and get in Ethereum at $8 this year, but you also have to remember that other cryptocurrencies went up 5x Ethereum's appreciation and more.
In the financial world, diversification helps you lower your beta (risk as compared to the overall market). This is especially important in the cryptocurrency market as many of these cryptocurrencies are illegitimate, or at the minimum will not pan out to anything of great value. By diversifying you can help mitigate this risk. If you hold five cryptocurrencies evenly that you think will be successful, and you're only right about 1/5 of them but it goes up by 401%, you're profitable.
Thank you makes total sense.
@gardengirlcanada you can also consider QuadrigaCX. They are Vancouver based and offer many options for funding via Canadian bank direct deposit for example.
Seem pretty reputable. They are supposed to be the largest Canadian exchange.
Right now they are an exchange for Etherium and Bitcoin only in USD or CAD. But that's not bad if you want at least one Canadian option.
https://www.quadrigacx.com/
Thank you. Yes I have checked into them a little bit. Today, I will dig deeper. Hope they jump on the Litecoin wagon soon, as I am little heavy in that.
Diversification is almost always a smart approach to investing. While it's good to diversify in the crypto market, remember to diversify in unlike markets as well. Stability comes from being spread out, but not spread thin.
Hi gardengirlcanada, I personally use Quadrigacx and Coinbase but favour Quadriga as the fees are lower but their options for different coins are limited but I also like that as it keeps it simpler for people who are new to crypto. I'm actually working on a post so if your interested check my blog when you have time as I cant't type everything in this comment box. :)
Thank you I will keep my eyes open for your post