Should you diversify when investing in cryptocurrency? 🤔
cryptocurrency·@jokeskay·
0.000 HBDShould you diversify when investing in cryptocurrency? 🤔
 It might seem unlikely but there is a right and wrong way to spend your money on something and hoping for it to grow. Most people, when they are making an investment want to know that in the long term they will be safer then in the short term, and will do whatever they can to make sure this comes true; usually that means diversification. Whether you know it or not it is what most people think. By diversifying an investment, *for example of $1000* evenly between a few projects you are more likely to have something end up giving you a high return then if you were to just choose one. Even though that one could give you a high return as well it could also loose in value and your whole portfolio is down. So you see how the chances are just greater for you when you choose to diversify an investment. With cryptocurrency it is more likely then ever that you see high returns. They are in demand and prices are moving like crazy. New ones are coming out all the time but it is recommended to stay with the tried and tested.  **Bitcoin isn't the only cryptocurrency**. Sadly no, I know it can be surprising for people that are completely new but yes there are other ones out there. They are sometimes complete copies of the original or they are very innovative and take the technology that bitcoin uses and create something other then a form of currency with it. These *other forms* are called altcoins. An example of an altcoin is Steem, Steem is not just a currency it is one that is fueled by a platform, a social media platform. People use steemit to earn steem and build their influence, this is not just a currency for transactions for goods and services. Now that you know you should be ready to find the next Steem, or *other altcoin* to add to your portfolio and with the right selection you just might be on your way to a very secure future.  **Understanding market value**. Now that you know that there are other cryptocurrencies you need to understand the levels of value. Truly there are hundreds of coins out there so they can not all be winners like bitcoin, at least for the long term. So you should know what cryptocurrencies are good for and what they are worth for how long. The different market values are high market value, medium, and low. *High* means that you want to hold these for the long run and even if the price hit the floor you wouldnt sell because you have high hopes to see it go up, these are bitcoin, and ethereum. *Medium* could be a zcash or bitcoin fork or Lisk. These are projects that look like they have potential, but aren't really there yet. *Low* this could be known as the coin you just want to flip. Some are called, just to mention Wabi, bread, html coin, there are alot of others which are sometimes known as pump and dump coins. The price goes way up and usually drops and never recovers.  **Knowing your risks**. Getting involved in cryptocurrency can be risky and you should know that before you decide to do what you are thinking. Be lucid when you are making choices and know you are 100% sure of yourself when you do so. A smart investor knows how to divide his investment, they know the different levels of market value, and they know how much to spend on what. A good investor chooses to keep about half of his money in bitcoin, about half in *low* valued coins that are underappreciated and can be flipped for profits (aka arbitrage), and the rest is kept in altcoins, and ICO investing. This is an example of someone who is not taking any risks *so to speak*. Someone who is taking large risks would keep half of their money in ICO investing another 20% in altcoin that only have *potential*, and only small part in bitcoin. **Conclusion**. Realize the difference between a good imvestment spread over a lot of projects versus a bad investment slread over a lot of projects. Diversity is important and cam bring you low risk when choosing to invest with crpotcurrency. But when done incorrectly you could easily be creating a high risk for something out of the ordinary to happen you wouldn't want. Choose to invest wisely when diversifying your investment and remeber what I taught you and hopefully you will be on your way to building a pirtfolio that can last you. <center><h1>Thank you for reading this post. If you found it helpful please help it by doing the following. Leave a comment saying whether you choose to diversify. Follow me @jokeskay for more stories!</h1></center>