Post
Topic
Board Trading Discussion
Re: Confused on rotating profits. I’m scared my portfolio size is way too big.
by
Adbitco
on 09/12/2024, 11:03:24 UTC
1. Is it okay to rotate my profit into another coin, or should I invest it in a stable coin or leave it in USDC?
2. Do you think investing in 20 coins is too much? Should I reduce my portfolio?
1. Both are good choice but you don't invest in a stable coin. It's a way to retain the value of your profit.
2. That's too many and too much diversification. I wouldn't do that to be honest because that's almost going to get you nothing. You might earn with one pump from your 2-3 coins but then get a terrible loss from the other remaining coins. So, don't diversify a lot and get at least 2-5 coins of your choice, the ones that you have the strongest conviction of holding because you're going nowhere with that number of cryptos.
Lot of people think that holding too much altcoin would increased their chances of making profits from them because they thought there is likelihood of them soaring above expected but have also forgotten that those altcoin can as well increase their chances of losing them all entirely. Like you said having bitcoin as most priority coin and then includes few altcoin maybe 3 of them likely better, just as holding Ripple, BNB and Ethereum maybe he may decides to includes Tron and Sol on their portfolios these coin is enough to hold than going to hold series of coin that could easily create dying part for him.
If you do find out that it needs to be rotated then its your choice. Diversification will really be the most common way for you to reduce risks on getting that totally wrecked with your investment since there's other coins that will really be able to pull up if ever you do have some loses in other coins. Try out to maximize out things accordingly and you are the ones will really be making out such decision
The major thing we are looking out is how to manage the risk, like to narrow down how big we could lost during our investment. Like I said earlier, giving bitcoin much priority of investment is also a better way to narrow down our lost even though we may not get the required x amount but what matters is how low we can risk only little amount than risking the entire amount of our investment in the name of chasing a specific amount from diversification of coin. Bitcoin as i made mention gives us the low risk of losing our investment, then even though we must invest in other coin it should be only top 5-10 coin which i also think the risk level are minal and less effectives even though the market dump unannounced.