Having A 'Diversified Portfolio', What Does That Mean To You?

If you're into cryptocurrency, everyone tells you to 'diversify your portfolio'. I overdid it a little, and now I'm wondering if I'm the odd man out...

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My First Bitcoins



When I bought my first Bitcoins in october 2016, I knew nothing about it.
I actually had plans to invest in gold, when a friend of mine suggested to go for Bitcoin instead.

Since I was not familiar with BTC, I did a little bit of newbie-research (if you can call reading a lot of articles of which you don’t understand half ‘research’) and decided to follow my friend’s advice.

In the following months, I tried to learn as much as I could. Unfortunately, I have little technical insight, so there’s still a whole lot I don’t understand, and I probably never will. But I’m going with the flow using my limited knowledge and skills.

I remember there was one thing that always seemed to pop up again and again: the importance of having a diversified portfolio.



I may not have any technical insight, but fortunately I’m smart enough to know that betting on only one horse is plain stupid.




The Next Step



At that time, all I had was a Coinbase account, so the logical step was to buy some Ethereum and some Litecoin. And so I started my diversified portfolio: by adding an $8 coin (yes, that was the price of Ethereum at that time) and a $65 coin.

There was absolutely no research involved: those were the only coins Coinbase allowed me to own.

A little later the price of Bitcoin was going up very fast, so was the price of Ethereum. My profits were growing daily, so I decided to invest in another promising coin.


You should know that my way of ‘researching’ never changed. I’m not good at reading and interpreting charts, let alone make predictions. I know absolutely nothing about flows or triangles or whatever else is important to know before you invest. I’m too lazy to read whitepapers, do background checks on a team or check if the coin has a good reason to exist.




All I do is read articles and forum threads, which are both the most subjective resources around. I check out other people’s analyses and predictions and compare them to each other.

And in the end... I simply follow my gut feeling. So far, it has only let me down once.

Addicted



I quickly realized that buying new coins was pretty addictive, especially when the value starts to increase.

If you’re sure of yourself and you know what you’re doing, you can diversify your portfolio by adding 2 or 3 different coins. The fact that my gut feeling is the main factor in my cryptocurrency adventures proves that I absolutely don’t know what I’m doing, which results in a huge portfolio.

I own no less than 29 coins and tokens. Don’t worry, I didn’t invest my entire savings account. It was pure luck that I was able to buy some Bitcoin when the price was still below $900. I used my profits to buy everything else.

My portfolio

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The green ones I got for free. The red ones are the ones on which I’m losing money at this point.

Not so bad for following my gut feeling, I guess.

Electroneum, EOS and Monero, the three losers, I purchased only recently, and those had little to do with following my gut feeling; I just got caught in the hype.

I know this is a huge list, and I would probably make more profits by narrowing down the number of coins, but because of my lack of knowledge it’s hard to decide which I should keep and which I’d better sell.

And it’s not only my lack of knowledge... It has become a bit of an addiction too. Maybe I should start a self-help group called the ACB: the anonymous crypto buyers - lol. We could have meetings here on SteemIt, or even start a Discord channel ;-D

What About You?


So now I’m wondering how other people think about ‘a diversified portfolio’. Is it 4 coins? 10 maybe? Or is everyone else as addicted as I am, having a portfolio of 30?

(Of course that’s the answer I’d prefer to hear. I really don’t want to attend ACB meetings)

Please let me know how many coins and tokens you own, and why, so I can learn something from you.




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