The futility of crypto diversification

Pekelo said:
I agree with you that not all cryptos are the same, there are certain subsectors. Tether and stable coins are obviously a completely different bird than BTC.

That being said, would you mind posting the different subsectors' performance today? Just pick one crypto from each, I am too lazy to do it.

A qucik look at Coinbase is showing that ETH is actually down more than BTC. How about Cardano? The same shit. So much for subsectoring cryptos...

In theory you are right, the problems with theories is that they don't always work in practice.
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they're all red. maybe dai, pax gold, gemini dollar from what i can look online. there's many out there that arent in the major exchanges yet. this market is like like 10 years old..it's a baby. Give it another 10 years and we will have better tools to screen the sectors in this market.

But the point is, you said diversifying in crypto is pointless cause big dogs like bitcoin just drives everything. In major correction, sure, everything is pretty much correlated like the equity market example i gave from today.

But your case of "why diversify when everything is red" just doesn't make sense.
 
noddyboy said:
Do you have a position or just finding joy in other's misery?
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When crypto's go up believers have fun laughing with the "missed opportunities" of the non believers. So it is logical that this works in both ways.
Believers as well as non believers have reasons why they do what they do. They both also know the advantages and disadvantages of what they do.
Nobody should feel pity for anybody else. Both groups have chosen for what happens with them.
 
... And I was one of the earliest and most fervent critics of cryptos here on this site... I stand here and feel some sort of vindication. But I never take amusement in others' losses.
 
virtusa said:
When crypto's go up believers have fun laughing with the "missed opportunities" of the non believers. So it is logical that this works in both ways.
Believers as well as non believers have reasons why they do what they do. They both also know the advantages and disadvantages of what they do.
Nobody should feel pity for anybody else. Both groups have chosen for what happens with them.
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believers are long so they make money laughing.
S2007S is not short, so that is the difference.
 
One thing to keep in mind is Bitcoin dominance. Bitcoin dominance was high early this year, but now it has fallen dramaticly. What does this mean for alts? It means now that dominance has fallen, alts have more of their own price action, which is why it will be called "Alt season." When Bitcoin crashes is when alt season will begin, and may even see some new ATHs for alts.

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noddyboy said:
believers are long so they make money laughing.
S2007S is not short, so that is the difference.
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Why should he go short? I am a non believer too. I never went short as I would never trade any position in something that I call a scam.

Everybody who makes money, laughs. That's not limited to crypto believers.
 
Pekelo said:
That is why I included the ATH to current low numbers. The drops were very similar. Did you actually read the post?
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Feisty Pek

I thought you would be in a more joyful mood :D

I repeat again, over several months it provided my portfolio the risk/reward advantage of smoothing out volatility

I was hodling BNB and CAKE which gained 100's of % and gained $ valuation even times of btc selloffs

Obviously, the past few days, things are going nuts (crashing) on all cryptos. Look at the words in bold

No offense but you would not know. I mean those underlined words
 
johnarb said:
Feisty Pek

I thought you would be in a more joyful mood :D

I repeat again, over several months it provided my portfolio the risk/reward advantage of smoothing out volatility

I was hodling BNB and CAKE which gained 100's of % and gained $ valuation even times of btc selloffs

Obviously, the past few days, things are going nuts (crashing) on all cryptos. Look at the words in bold

No offense but you would not know. I mean those underlined words
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All depends of how big the crash is and how big the advantages were...

But I think what you did makes sense. I would do that too.
 
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