Post
Topic
Board Bitcoin Discussion
Re: To diversify or not to diversify...
by
Fortify
on 14/06/2021, 20:14:07 UTC
So my wife and I started buying bitcoin a couple of months ago, and as of right now we're the proud owners of 0.4 of a bitcoin.

Since everything is so cheap right now, I want to invest some more of our savings before things pick up again.

Should we just be focusing on BTC, or would we be better off diversifying (maybe Etherium?).

We got into crypto in order to help us own a house and be able to be semi-retired within the next 10 years, if that helps.

Quite simply what you're doing with your money is very dangerous. A wise investor would only be placing 5-10% of all their assets into crypto, as it is extremely volatile and relies on selling to someone else at a higher price. We've already seen in the last month the price has lost over 50% of it's value with some claiming that it could drop even further in future. At only 11~ years old it is very untested compared to other assets like commodities and stocks. If you pick the right stocks you can even earn a dividend, so you get back a chunk of your money each year if the company decides to pay out a portion of their profits instead of re-investing. Keep about the same amount in ready cash as well, which might get slightly eroded by deflation but have a plan to use it again when the market crashes in your favorite asset.