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jumperabv3

Never put all your eggs in 1 basket (Insights from a newcomer)

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Hi guys,

Firstly I'd like to say hello to everyone in this forum. I'm quite new to Ripple but not new to Ethereum and Bitcoin and I started reading about Ripple recently, and I believe it has the potential to become decentralized in the future - and that would make it more valuable:

https://www.cryptocoinsnews.com/editorial-ripple-cto-says-ripple-will-decentralized-bitcoin/

Nonetheless I do hold both BTC, ETH and now I'm starting to hold Ripple, I'm a long term investor so I never sell the cryptocoins that I hold, not before 2022 or so (I'm aiming for at least 5-6 years for more people, companies etc. to adopt cryptocoins).

Do I believe the future lies with Cryptocoins? Absolutely.

HOWEVER,

I think any long term investor should never put all eggs in 1 basket, so whilst I agree Ripple is a great investment just like Ethereum and things can change for one of them more rapidly than people think - I still believe we should never put all eggs in 1 basket, diversification is the key for you to hold your assets without selling them or thinking about selling them rather too sooner than later because instead of "being sorry" for not buying this and not buying that - by diversifying you are protecting yourself and your mind from fluctuations or any worries about price changes - and that could help you to become a truly long term investor.

That's just my 2 cents, have a great week ahead!

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If you're serious about not putting all your eggs in one basket you should not put all your eggs in crypto. Buy some gold, keep some real money in the bank, buy some company stock.

You should also look at the ethical side of your investments. A single bitcoin transaction costs 140Kwh. Are you really ok with investing in such a system, now that with centralization of mining and software development, the whole concept of POW is rather pointless?

Edited by lucky

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@jumperabv3 It might be an unpopular opinion these days, but

- if you don't start with a v decent capital base

- and want to become financially independant for the rest of your life

..then you simply can't 'afford' diversification. 

Go work hard, save most of the money, wait until you come across what you think is a potential 'trade of the century', do extensive research, take a concentrated bet.

Obviously, it depends on your goals, and what type of person you are. 

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Guest dfault123

For me it's all eggs in one basket in regards to crypto. The benefit of diversification goes down if the overall risk of the speculative field gets super high. I only buy something I believe in long term. I'm still fairly skeptical overall on most cryptos. Crypto is full of unanswered questions. Sure it may look like everything in crypto is booming, but I will not let that distract myself. 100% XRP.

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I think diversification is generally a good idea. That said I'd reiterate what @lucky mentioned. Diversify into relatively stable assets like gold and silver, bonds, etc.

As far as crypto goes, @thunderw makes an excellent point. It really depends on your goals, capital, and stamina. If your goal is to always make gains, then diversification can help with that. If you have a ton of capital already, diversification is a generally a no brainer. If you don't have mental constitution to watch your holdings drop double digit percentages in a single day, then diversification might help.

But if your goal is to make a life changing amount of money in the long term, and you don't have the capital to diversify and reach that goal, and you have the mental fortitude (or at least you followed the golden rule of investing i.e. never invest what you can't afford to lose) then finding the "best bet" and going all in might be a reasonable answer.

All depends on the person. Great point, though!

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Guys,

I am definitely not investing 100% of my assets in Crypto, of course not. There are many other good options such as REAL ESTATE (why some of you push for "Gold"? Gold is the worst investment one could ever think of if you ask me).... Real Estate gives you a monthly income if you rent it out, it's all about location and opportunities (thankfully mine has gone up in value by over 50% from 2012 but alongside with that the value of the British Pound has plummeted, yet I'm still alive, I'm not worried about it as if my life depend on it).

The Israeli Shekel is another great investment, it's one of the strongest currencies in the world, and yet I bet most of you have never heard of it - I'd be cautious however of buying it now, it's at extremely record low point against the US Dollar, interest rate on the currency is super low and there is a real estate bubble in Israel, however investors don't seem to be deterred from investing in that currency for the time being.

Here are some more viable options if you don't have a large capital:

  • Real Estate in cheap locations, e.g. Reading, UK is a great place, very solid and prices there are only going steadily up as the years go by.
  • Latin America - as funny as it sounds - if you try any "normal" bank account in the US or in the UK to save your hard earned dollars in a fixed deposit - you would be lucky to get 1% yield return per annum, and with taxes on top (I do file taxes legally where I reside) - it would be 0.75% return more or less.
    HOWEVER
    Open a bank account in El Salvador for instance or in other locations in Latin America - you would receive 5% return on your funds, and I understand some people are concerned with Latin America but honestly big banks like HSBC and Santander and more are very safe, and it's a no brainer for those of you who look for "SOLID" income.
  • Crpyto - Let me explain below:

Okay, so you guys are invested 100% in XRP which is great, and I'm not saying it's a 100% bad thing, but what about ETH or even Golem (GNT)?

GNT is such a great investment, I think most investors are not even aware of how potentially you could get a great return from this?

I would say BTC, ETH, XRP and GNT could be a great portfolio for any investor, just spread your investment over these 4 channels, and never exchange between the 4 options, only fund one of them with more funds whenever you feel like it.

Thankfully I managed to do okay in life but I would have never managed to do okay without diversification - it's an advice from my father that I got (who unfortunately passed away) and I am sticking to it for the rest of my life.

Good luck! :)

 

Edited by jumperabv3

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We are all putting eggs in one basket.  More and more news worldwide about financial institutions writing their own protocol.  End of Ripple, Etherium and all the rest?  Someone please tell me it is not so!

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9 minutes ago, Diginewbie said:

We are all putting eggs in one basket.  More and more news worldwide about financial institutions writing their own protocol.  End of Ripple, Etherium and all the rest?  Someone please tell me it is not so!

Are you a day to day trader?

If you're worried about any bad news out there then it might not be for you.

I think a long term perspective is much healthier and coming with understanding that the capital is not guaranteed and can be eroded however, the potential profit is HUGE by all means.

In regards to your concerns - do you honestly believe the banks are ping pong that change their minds every minute? And are banks providing the only reason for you to invest in XRP? Do you not have any other reasons whatsoever?

I don't think what you mentioned should be a concern but that's just my personal opinion. If you believe this is the end of Cryptocoins then by all means sell everything you have, but I already stated I am keeping my Cryptocoins balance for at least 5-6 more years (I started with BTC about 2 years ago).

 

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Diversification is investment 101.   Last time I checked, giving investment advice are done by licensed broker. You stated

various other investments and offered your unsolicited opinion...all on a XRP message board, and finally lead to what your point really was....pump another crypto coin.

I lived in South America for 10 years.  You would be NUTS to put your money in a S American Bank. Especially in the country you mentioned which is Central America

Edited by HanaumaPaul

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34 minutes ago, HanaumaPaul said:

Diversification is investment 101.

 

2 hours ago, thunderw said:

Go work hard, save most of the money, wait until you come across what you think is a potential 'trade of the century', do extensive research, take a concentrated bet.

I'd actually go with @thunderw's recommendation - it also reminds me of what Mark Cuban said in an article, which echoes the quote above, and I think makes a lot of sense -- do your homework, know what you're investing in, and make sizeable bets on what you believe in.

"My approach has always been unless I know something specific, put it in cash."
"All that asset management, diversification, that's for idiots. You can't diversify enough to know what you're doing."

http://www.businessinsider.com/cuban-on-investing-diversification-is-for-idiots-2011-8

Mark Cuban's Interview for those that are interested:

 

Edited by Drkspirit

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16 minutes ago, HanaumaPaul said:

Diversification is investment 101.   Last time I checked, giving investment advice are done by licensed broker. You stated

various other investments and offered your unsolicited opinion...all on a XRP message board, and finally lead to what your point really was....pump another crypto coin.

I lived in South America for 10 years.  You would be NUTS to put your money in a S American Bank. Especially in the country you mentioned which is Central America

  • People who say "investments are provided by licensed brokers" are in my opinion ones who cannot think outside of their box. If I had to go with an investment brokers and put my funds with them I would probably never be where I am today, so I do apologize but for me an educated person who got a license from the government knows no more than anyone else. Oh and btw I remember one broker who tried to sell me a ***** package - instead I've invested in Real Estate, was so much better - but surprisingly this "smart" investment broker couldn't see a trend of the equity going up by 50% within 3-4 years (and his barely would have made 15% without additional rent income that is excluded from these calculations).
  • I am not here to pump anything, just giving advice from a 100% pure good faith and gesture... do you really think I have time to spend in a forum just for me to pump a price of some Crpyto currency? And do you honestly believe the price of that currency is determined on this forum? Once again - if you cannot think outside of the box don't blame me for it.
  • I don't know about you living in Central America, but I'm telling you from my own personal experience I have money there and I'm more than relaxed - I think it's the third time you've proven you cannot think outside of the box and you feel like it's okay to generalize the entire continent of Central America .. don't get me wrong, I know you can get killed on the streets there but there are ways to bank there without visiting the bank more than once if you're very scared, and I was just throwing some ideas for those who like the idea - and again - never put all your eggs in 1 basket ... putting $20,000 there for a 5% return won't be the end of everything for an investor and I am willing to bet his capital would be much safer there than in other banks such as in Cyprus 2013 where someone in Bitcointalk forum showed how he lost $700k from Laiki Bank (Oh, and be surprised but some forum members might like Central America, and won't view the place like you do - Latina girls there are very pretty for those who look for a spouse, but necessito habla poquito espanyol etc. etc.).

So is it bad to think outside of the box? Perhaps you will accuse me for pumping the Israeli Shekel now .... Now fourth time is a charm?

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