Hello everyone!
I am talking to quite a few people who are investing in crypto and notice that very few have a broader investment spectrum. People either focus on ICOs, some small caps, others play it safe and stick with the high caps or established projects.
But hold on, is the later really playing save? In my view, even with high caps you will still be massively exposed as you have all of your eggs in one basket. Namely in the same market. Different eggs in size and colour but all eggs. If the basket falls, your eggs still get crushed.
As mentioned before, I am trading stocks for over a decade and crypto since last year. I also agree that is easier to trade stocks, simply because the volume is so high that a few whales or big investors cannot influence the market as easily by dumping their shares. The stock market is also much more regulated, if someone is being caught doing washtrading or spoofing the consequences are dramatic. In the crypto world manipulation is something that poses a constant threat. Just look at the market now, the recent dip is not tight to any event, news or even fud. 25 billion just disappeared and people are wondering whts going on.
Long story short, its great you have a diversification plan but also think about moving assets from crypto to fiat, stocks or raw materials and precious metals.
What is your view on that?
There are safe side on this system and that will only pinpoint to the local exchanges where they do not need money or invest in cryptocurrency. They will just earn through transaction fee deducted on every investors doing trades. Other individuals may also earn without investing in cryptocurrency but still in risk are those miners. However, mining is costly and you might not get your money back in mining crypto.