The Blockchain is a great technology and for the time being we can expect that emergent nature of the community will overcome all the bans, governments and restrictions and to continuously change technology on its way.
Having said this it's very difficult to bet on the right crypto, which one will be the one that will solve the specific issue of the moment?
My suggestion would be to:
- yes spend time to select cryptos and tokens, look at graphs and read about teams and regulation
- but always maintain a portfolio of cryptos so that you are not too exposed to idiosyncratic risk
For those interested I wrote a post on the gains from diversification.
CryptoPortfolio - Simple trick to increase returns by 8% per year
@belgarath , thanks for your reply... diversification is advisable only to people who are betting ;-)
Hello @aarcee, thank you for your reply!
I believe diversification is a free lunch and it's useful in almost all circumstances.
Granted, it's not efficient if you are perfect in your investing: it would not have helped Bill Gates to diversify away from Microsoft shares (and some famous investors mentioned they have concentrated portfolios), but for most of normal investors it has always the below benefits:
So I would say it's advisable to all investors who have a long term approach. For speculators and for betting, it's also good to have it but much less that for investors.