Post
Topic
Board Economics
Re: Don’t Fall Prey to these Market Sentiments and Save your Bitcoin
by
The Sceptical Chymist
on 30/01/2023, 00:37:37 UTC
And regarding diversification: I'm not sure if diversification is beneficial at all. I've written a separate article about it: Is diversification into different coins really a good advice for Newbies?
Just HODLing Bitcoin has proven to be less risky than diversification into different Altcoins.
I've got your thread open in another tab, and I'm going to read it shortly--but even without reading it, I have a very definite opinion on 'diversification' in crypto.  That term is applicable to the stock market, where there are different industries whose earnings vary based on a number of factors, and they aren't all correlated.  But crypto?  First, very few coins aren't correlated with bitcoin and second, 99.9% of altcoins are pure shit and will never be used for anything but speculation when there's interest in them.  Some are red-hot for a while and then just fizzle out, and even with bitcoin being as volatile as it is I think it's far safer to hold it rather than buying a basket of altcoins.

As for the points OP made, they seem to be targeted to newbies who haven't heard those terms, which are regurgitated so many times all over the internet and even in the mainstream media that it's annoying at this point.