You should NOT be in CRYPTO only!! - how to reasonably diversify

You should NOT be in CRYPTO only!!

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Since I first started to get into this crypto space back in late 2016 I more and more feel like most of the younger generation are only in crypto. And that is definitely not a good idea! In combination with the fact that only very few of those people have even a basic understanding of risk management let alone a clearly defined stop price to cut their losses!

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Longevity is the name of the game! And there is no such thing without basic risk management (which obviously includes a certain level of diversification). It might work out for a month. It might work out for a year. But not a whole life!

And just to be clear, I am talking about medium to long term investments! I have absolutely no problem with only trading cryptos (which I myself do mostly). But that is a very important destinction. And all these kids who are just screaming "HODL" at every occasion they get a chance to are really not helping.

HODL no matter what is something you can maybe do with 3-5% of your portfolio, but even then you have to be aware that you are just gambling here! Investing is what some call it. To me it is just hoping!

How to diversify?

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I really don't agree with some of these so called gurus who recommend diversifying beyond reason and are in over 50 positions at the same time - yes there are such people, and its not a few. But to a certain degree you have to minimize your risk.

1. You should have at least 3 somewhat unrelated fields of investments: f.e. -stocks -precious metals -crypto
2. In each of those field I would suggest to have at least 3 different medium to long term positions (that does not mean that you should'nt have a stop loss)
3. Have at least 15-20% of your capital at hand to open some short term positions or trade

I really hope some will take these into consideration! I don't like to see people lose their money.

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An upvote would be very much appreciated. Thank you!

#dreambigdobigger