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Proper crypto diversification strategy

<SLV>

Platinum Bling
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For HODL...
How many is enough? How can you choose investments that hedge one another? How much do you use for "gambling" on newcomers?

Right now I am 25% ETH and 25% SOL with a smattering of longshot coins at about 5% each. (Frankly, my entire Coinbase portfolio is gambling money I can afford to lose.)

I plan to add a new investment every other week at about $50 a pop. Trying to find the early ones with good potential and momentum.
 

ZZZZZ

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For HODL...
How many is enough? How can you choose investments that hedge one another? How much do you use for "gambling" on newcomers?

Right now I am 25% ETH and 25% SOL with a smattering of longshot coins at about 5% each. (Frankly, my entire Coinbase portfolio is gambling money I can afford to lose.)

I plan to add a new investment every other week at about $50 a pop. Trying to find the early ones with good potential and momentum.

I think you're spot-on.

I make the analogy of cryptos to mining stocks. Bitcoin and Ether are the 900 lb blue chip gorillas in the industry, like Barrick and Newmont.

There are mid-tiers like Litecoin and Cardano, similar to First Majestic or Great Panther.

Then there are the 90% of the mystery 2,500 cryptos which are pure junk, just like 90% of junior exploration miners. They're lottery tickets. But if you hit one,, it will cover the losses on the rest, and more. Play them only with funds you can lose.
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<SLV>

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OK... so 10 days into Crypto investing/trading, and I have decided to limit my investments to Bitcoin, Ethereum, and Solana. I believe these are all the real deal, and the rest are wannabes. Going to start treating this more like investing, and less like gambling.

EDIT: And maybe Litecoin because big players are in it.
 

ZZZZZ

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OK... so 10 days into Crypto investing/trading, and I have decided to limit my investments to Bitcoin, Ethereum, and Solana. I believe these are all the real deal, and the rest are wannabes. Going to start treating this more like investing, and less like gambling.

EDIT: And maybe Litecoin because big players are in it.

Beyond your top 3 or 4, I'd sprinkle a couple of percent in some of the better lottery tickets, such as Cardano and Polka Dot. Don't try to trade them, just buy and hold and hope.:D

JMHO DYODD.
 

<SLV>

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I have earned $35 in crypto through Coinbase "learn and earn". I just straight up trade them over for BTC/SOL/ETH.
 

ZZZZZ

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I have earned $35 in crypto through Coinbase "learn and earn". I just straight up trade them over for BTC/SOL/ETH.
I've done that too, though often by the time I find out about the offer, it is closed.
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ds_mustang

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OK... so 10 days into Crypto investing/trading, and I have decided to limit my investments to Bitcoin, Ethereum, and Solana. I believe these are all the real deal, and the rest are wannabes. Going to start treating this more like investing, and less like gambling.

EDIT: And maybe Litecoin because big players are in it.
BTC and ETH are the bluechips and have always been there leading. I'm overweight ETH because IMO it has more potential than BTC, though others would disagree. I want to add bluechips and never sell, using them to generate more of themselves (via staking or services like Celsius). I hold bluechips through bears despite the pain as they've always come back with the bull (so far). You can make life-changing money during a future bull by buying bluechips after a year or two of a bear market when they've been put on 80% discount.

The rest of the crypto tends to get interest for periods as shorter term fads during bull runs. You don't want to be holding them during a bear, they will get destroyed and might not recover on the next bull. Recent fads have been DOGE, BNB, ADA, DOT and lately SOL. Big money can be made by getting into a fad coin during a crypto bull, BEFORE it makes its huge move (or early in the move). It takes some effort, attention, and luck. The smaller and lower in the ranks you get them, the more you can make if they pop big, but it's easier to find things after they've already moved quite a bit. Once something makes a huge move and breaks into the higher ranks (e.g. the top 10 or top 20 on coingecko), the big money might have already been made. Rather than wait around to see if it eventually becomes more than a fad, IMO take all or at least some of the money out and put in bluechips, other potential fads, or cash. Favor cash if crypto has been on a big run to buy later on a dip. Late in a bull market you might want favor storing longer term cash for gold or as reserve to buy bluechips during a bear.

Don't put much into chasing potential cryptos and only put money in during a bull. Don't put too much because even during a bull the dips will be massive in the small stuff and everything tends to be correlated. The bull market can often give you a return even if you get in the wrong thing (eventually). I play small crypto with a very small amount that I expect might get lost completely. I do it mostly as an exercise to stay aware of what's going on. Though I know a guy who spends 12 hours a day researching and some small coins he'll buy big. He makes millions when he catches a good one. He's nuts but somehow makes it work.

This is just what I do, it's not investment advice. Find your own way.
 
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