Bet everything on Bitcoin or diversify with Altcoins? 6 strategies compared

Bet everything on Bitcoin or diversify with Altcoins? 6 strategies compared

By Trading Passion | Trading's Passion | 22 May 2020


This is a fairly recurring debate in the Bitcoin and Altcoins investor-trading community. And this is a debate that is not easy to settle, as the two camps tend to remain somewhat camped on their positions. The question is however fundamentally simple: from the strict point of view of investment / profitability, is it better to have only Bitcoin, ONLY altcoins, in your wallet or be somewhere in between? To see it a little more clearly, you needed an expert, right between the frenzy of trading rooms and compulsive analysis of patterns, and the zenitude of a forest clearing. You understand, who better than an investor to help you better settle this debate and answer the $ 1 million question: what is the best crypto portfolio composition to maximize or secure profits?

 

 

Last week Bitcoin briefly crossed the 10,000 mark, which has not happened since February 2020. Unfortunately in a few days it is the fall with halving as a bonus ... the value of Bitcoin lost more than 20% to re-test the $ 8,000 this week. In the wake of Bitcoin, alternative currencies (altcoins) like ethereum, ripple, bitcoin cash, stellar, etc. have risen since their March 13 low, but have also followed in its decline.

 

So it's natural to have a little intuition that tells us, "But by the way, alternative currencies follow bitcoin up and down. So why bother buying these altcoins when they all tend to follow bitcoin? Is it better to have only bitcoin in your wallet or better to diversify with altcoins too? But in the case where I have bitcoins and altcoins, do I have to assign them the same weight in the wallet (what is called equi-weighting) or on the contrary, I would not do better favor the weight of bitcoin? And after all, wouldn't it be better to prioritize the weight of altcoins? " Many questions that you will find answered in the little video that follows. 6 portfolio profiles will be presented to you, in terms of their performance for very precisely 4 years (from May 6, 2016 to May 6, 2020).

All leave with a starting capital of $ 10,000:

 

  • A wallet with 100% Bitcoin
  • A portfolio with 33.3% BTC, 33.3% Ethereum, 33.3% Ripple. We will call it TOP3
  • A portfolio with 60% BTC, 20% ETH, 20% Ripple, we will call it TOP3 Dominance BTC
  • A wallet with BTC, but also “small” altcoins: Binance Coin (BNB), Tezos, LINK
  • An equally weighted portfolio between BTC, ETH, Ripple, BNB, XTZ, LINK, BCH, Litecoin, Monero and Dash
  • Finally, a last wallet, EXCLUSIVELY made up of small cap Altcoins (therefore excluding ETH and XRP)

Trading Passion
Trading Passion

Crypto trader


Trading's Passion
Trading's Passion

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