Quote from: redsun114 on February 21, 2024, 01:54:32 PM

Quote from: Rehan Zakir on February 13, 2024, 01:44:33 PM

I will diversify my investment in 5 different coins. It means $100 per coin.
There is a very popular quote " Don't put all your eggs in one basket"
If any f my coin give good profit. I will take it and book my profit.

That's probably the best strategy when it comes to investments in a market that is highly volatile and unpredictable. You never know what might happen next in the cryptocurrency market, so you can't expect any cryptocurrency to work exactly in your favour and have all your money invested in it. It's wise to choose multiple cryptocurrencies instead so that if a few of them fail and don't give you any returns, the others might balance your capital along with some profits.

That being said, I am not a fan of over-diversification, which means that you shouldn't invest a small amount into a bunch of different cryptocurrencies where each one would only get about $10 to $20 and you would barely get a few bucks in return even if a lot of them manage to turn profitable which wouldn't be able to cover your loss in case a few of your investments fail.