[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 126 KB, 1080x1007, Screenshot_20180506-115734_CoinTracking.jpg [View same] [iqdb] [saucenao] [google]
9284876 No.9284876 [Reply] [Original]

Is diversification a meme? Or am I playing with fire?

>> No.9284939

>>9284876
You're too diversified 2bqh fąm. You dont have enough money to hold 2 coins

>> No.9284974

>>9284876
Depends on how much risk you can take up your ass.

>> No.9284994

>>9284876
Diversification is to protect you in case of unpredictable traumatic events. E.g. suppose the dev team is eating out at a restaurant and an earthquake occurs killing all of then. Or maybe the lead dev has a midlife crisis, quits, and it turned out he was the one carrying the whole project. There's an alternative universe out there where your stupid meme coin makes you a multimillionare. There's also many universes where it goes to zero and you're left with nothing, How many potential scenarios each are there and what is their average?

You cannot know this. This is why you keep 90% in conservative stuff (mostly just btc, make small obvious trades here and there) and then 10% in shitcoin moon shots with low downsides and massive upsides and you take profit when you can. The goal is to survive.

>> No.9285018

>>9284994
90% in bitcoin

are you retarded?

>> No.9285023

>>9284994
How often does that actually happen? All but the shittiest of shitcoins still seem to gain during alt season. Is there actually a good change I get JUSTd entirely?

>> No.9285066

>>9285018
Dont talk to your elders like that. Grandpa there is still probably upset he didnt diversify in '29

>> No.9285099

>>9285018
I trade alts, to me BTC is cash. Can't lose BTC if you're holding BTC. Know what I'm saying?

Obviously if you're actually being conservative then you keep that shit diversified with non-correlating assets such the SPY, precious metals, and a large portion in cash. Do not trade with leverage.

>>9285023
Yes, they gain in alt season and then they come back down to earth after it's over. For very bad cases look at things like confido (an actual scam that burned a lot of people), or ZCL, a shitty overhyped airdrop that went -95%.

The concern is not that disaster will happen everyday. The concern is that you're 100% exposed when it does and then you wipe out.

>> No.9285142
File: 60 KB, 497x380, mmmmm.jpg [View same] [iqdb] [saucenao] [google]
9285142

>>9284994
>90% in bitcoin
>the goal is to survive

>> No.9285159

>>9285142
Bitcoin is antifragile. But yes I get your point.

>> No.9285180

>>9285099
Chekd. And I see what you're saying but why wouldn't you be 90% in alts during bull periods to maximize your sats? I think you just play this way too safe for my tastes. I'm considering investing in other alts but not bitcoin or other financial assets

>> No.9285197

>>9285159
A Taleb fan I'm assuming. Is antifragile worth the read? I've only read Black Swan by him

>> No.9285231

>>9285180
I do, but for very short periods because I'm a degenerate swing trader. But when I smell disaster I immediately go back to BTC.

This is a new development for me, I came to the realization that I've been quite lucky to not wipe out and if I didn't start better decisions it'd eventually catch up to me.

>> No.9285279

>>9285197
I'm 1/2 through it. It's pretty good. I haven't read black swan but I enjoy it just as much as 'Fooled by randomness'

Not a taleb book but I'd also recommend Scott Patterson's books (dark pool and the quants). Provides the perspective of the quants that got fucked massively because of black swan events.