This year marks my fourth year in crypto and it seems such a long way so far. Although I am 100% sure that my experience with blockchain technology and cryptocurrencies is just in its early stages, I can definitely say that I'm much more mature now and definitely more salty. I've learned it the hard way though...
One important thing that I have noticed as an active member in this space is diversification. I have had a bit of experience with gambling over the years and I've also noticed this pattern in my investing in crypto. Often times I have put all my money on just one coin and getting in and out of the market has followed pretty much the same pattern.
I wouldn't recommend that to anyone though. Having a diversified portfolio translates to more chances of making the most out of your money and to be on the right side of the pumps. It also kills the need from jumping from one coin to another. When you only hold one crypto all of your hopes are on that one and same goes with your frustrations.
Chances are that that one crypto might not pump when most of the market does, you'll probably loose patience, sell it and chase the next lucky one. There could be also the situation that jumping from one to another you might waste an entire bull market, pretty much how I did back in late 2017.
Same thing I was thinking of regarding my income streams. I am currently relying on crypto for my daily living and that's definitely not the safest bet. Truth is that the current bull market has been vey generous, but at some point it will peak and we'll have a couple of years of bear market when living off of crypto will probably become impossible.
Hence I am starting to think of building myself at least two income streams, probably even getting a job or something. I haven't yet figured out the best strategy for diversifying my income streams, but I definitely must do it. Relying on just one income stream can be stressful and when we talk crypto we're definitely taking volatility into account which is quite frustrating sometimes.
Often times bills are not volatile :). Writing about this topic I can clearly remember about a user I was following on Steem back in 2018, who at some point got to an over saturated state regarding his blog. He was posting about crypto and nothing else and his range of topics wasn't wide at all, thus he got to the point of asking his followers what type of posts would they like to read from him. It really felt like he was their employee or something.
That's lame imo. No heavy balls blogger does that, but he's got in that situation imo due to the fact that his content wasn't diversified at all. He was all day everyday beating the same drum and his followers started to loose interest. One example in this regard was also jrcornel who managed to make his posts nothing more than interpreted crypto news for almost four years.
I wouldn't recommend that. Most of us are reading crypto related news every day anyway and we don't need anyone to interpret them for us. Embracing a diversified type of content, even when being active just inside a community such as Leofinance may keep your followers active better than sticking to a niche and becoming predictable.
I can't say that I am highly diversified when it comes to all of the above, especially when looking at my income streams, but without some well deserved diversification I wouldn't still be here. Getting all in is no longer my cup of tea. It used to be, but after a few years in crypto I pretty much learned this lesson. Hope you had a fantastic weekend and that your portfolio is doing great and see you to the next post.
Thanks for attention,