When pursuing a buy-and-hold strategy investing in crytocurrencies, what are the best practices for diversifying among them?
i diversify my money not my bitcoin.
i invest my money in different things and bitcoin is one of them. and when you say buy and hold for cryptocurrencies in general that is not going to work for any of the altcoins.
Ie.
Own by market cap' weight?
market cap is meaningless for altcoins because they can easily manipulate it by creating a huge amount of supply while not releasing any of it on the market (like ethereum and ripple); so no.
Own 10% of top ten (by market cap')?
the same, but being on top gives these altcoins a certain kind of higher volume which others don't have and that will slow down any kind of rise and fall. so you can go in with a tiny bit more confidence.
Own varying percentages of your top 5 favourite projects?
this is not bad, but i personally prefer not owning any altcoin for any long period of times. that is less risky.
90% Bitcoin, 10% new ICOs?
ICOs in general is a bad idea for investment.
the risks are much higher and the reward is not something to die for.