Importance of distributed investment in cryptocurrency
Today, a reader of the newsletter asked a question,
so I would like to introduce a little for readers who share the same concern.
This person has purchased my members-only article (650 yen per month) and
the Master Report, and this is a support email.
Limited public article↓↓
http://bitcoin-newstart.com/axon-investment-saron
Crypto Master Report↓↓
http://bitcoin-newstart.com/bitcoin-master-report
The email text of the question is as follows↓↓
I started investing in cryptocurrency at the end of September this year,
I have no experience in stocks or FX in the past, so
there are many things I don’t understand, and the price has been volatile, which has day-to-day up and down movements.
From the end of September I gradually deposited cash into Coincheck and am managing a total of
one million yen in funds.
At first I bought only altcoins like ETC, Ripple, etc., and I was happy watching them gradually rise,
but recently I bought BCH at 750,000 yen in cash, and then held on to it at a high price of 240,000 yen,
and immediately after that there was a crash, which was a mistake.
Investing requires strong mental fortitude to continue, I realize.
Currently I still hold the altcoins I had,
and because they were profitable, I had taken all profits in JPY at the beginning of this week.
Even at that time BCH continued to fall, so my total assets dropped from 1,000,000 yen to 650,000 yen.
After that, with the profits from selling altcoins,
on November 17 I bought 3.5 BCH with 107,000 yen
and as of now I have recovered to 960,000 yen ^_^
My BCH buying was advised by Casey's distribution (limited public article) and I think it was very accurate.
Thank you very much!
Now, here’s the question: I currently hold all my assets in BCH,
If BCH continues to rise well, wouldn’t it exceed the original 1,040,000 yen?
I can’t really see what comes after that…
Should I continue holding BCH…
This is where the question ends ↑↑
What I answered was
that diversification is recommended,
that is, diversification.
After all, holding only Bitcoin Cash carries risks.
Hence, at this stage, I advised
to diversify into currencies with higher market value and somewhat lower price
so that you can shift gradually.
(I mentioned a few specific currencies.)
How much to diversify? It depends on how much future potential you believe BCH has.
So for example, you might allocate
40% Cash
20% Bitcoin
20% Ethereum
10% NEM
10% Ripple
*This is just one example.
etc.
However, you won’t be buying and selling all the time; timing of purchases is also crucial.
Therefore, for those timings, I publish which currencies I invest in in my limited public articles,
so it seems readers refer to those.
Nevertheless, the attitude of a beginner or not, to study properly and proceed with investing is something I truly want to support.
Failures can contribute to learning, but if you incur large losses, you’ll get mentally tough because you are not used to it.
So always proceed with money you can afford to lose, study cryptocurrency, and within that become capable of investing effectively.
That is the essence of this newsletter.
Investing in cryptocurrency and buying at high prices and suffering losses can still be compensated by future potential currencies,
their prices will eventually come back.
But no one knows when they will return to that price.
Therefore, by timing well, even if you incur losses, they will be smaller, and you can diversify more efficiently.
Limited public article here↓↓
http://bitcoin-newstart.com/axon-investment-saron
Crypto Master Report here↓↓
http://bitcoin-newstart.com/bitcoin-master-report
