All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
But how we Apply these rules in Crypto Market.
When Bitcoin moves 95% alts dumped. BTC moves up or down, Alts goes down. where we invest and no one can predict the market movement.
So what would be the right strategy of Diversifying Crypto Portfolio...
Bitcoin is the dominator in the market. The whole cryptocurrencies and all altcoins moves are dependent on the bitcoin movement. Altcoin rally up when bitcoin moves up and almost all altcoins are down when bitcoin is down. But this does not mean that we invest only in bitcoin and forget about the altcoins.
The advantages of having both bitcoins and altcoins in your portfolio mean that you can gain the advantage of the altcoin moves but at the same time you have the best asset bitcoin with you which will make you rich gradually. The returns on bitcoin may be slow as compare to altcoins but altcoins give much more returns when they pump.
My advice will be to hold 50 to 60 percent of your portfolio in bitcoin and with the rest of your money, diversify it in the best altcoins of your choice.