RE: 10 Ground rules for investing in cryptos and what we can learn from bubbles

In general I agree wekkel, however, the diversification you would be doing is only a risk minimiziation in terms of spreading your investments into different coins and in terms of the current market this strategy will not help you. All or most coins are moving down right now.

What I mean in terms of true diversification is that in the regulated market when you compare markets like the energy markets and its different investment opportunities you may be able to "Hedge" yourself in a position in which you invest into Oil and alternative Energies since those would be having a correlation in situations in which Oil would become much more obsolete alternative energies might move upwards and gain importance in different segments on our economy. This hedging is basically creating a balance and it would even out the losses somehow.

In general I don't see this kind of correlation hedging being feasible in the cryptocoinmarket since its high volatility is moving the full market in a bear or bulls situation. The coins showing positive effects are safe harbours for bump and dumpers saving their money in possible secure upward moving coins. However, those coins don't really show a sign of correlation or reason as to why they are moving upwards. In our example with oil and energy from alternative sources we have a strong correlation meaning that the one will profit from the losses of the other and vice versa.

Does this make sense to you?