Hello everyone, I'm a complete beginner in trading and I would like to invest in various ways in order to limit my losses in general. I'm not looking especially for a short term benefit, I can wait 2 or 3 years, or even more if necessary. For now, I would like to invest a bit in cryptocurrencies. By the way I have a relative good background in mathematics and statistics. My question is : Since a lot of cryptocurrencies are "created" every year and only some of them will inflate, in how many cryptocurrencies do I have to invest in order to be sure to get a benefit (even if it is not a lot) (on a one year scale) please ? Do you know some theorems, articles, papers, books, videos or authors which answer to this question please ? Some mathematical researchs which weigh the possible benefits, risks, losses in function of the amount of different investments/rates ? Thank you in advance for you answer ! Have a nice day !
Any investment is any cryptocurrencies should be considered for the part of your portfolio that can handle extreme or total loss.
Cryptocurrencies are - in a way - all one market. (If Bitcoin suddenly crashes completely, do you think the others will suddenly flourish, or all collapse too? I don't know the answer, and I suspect you don't, either.) True diversification means "across markets", not just "across products". You sound perhaps more interested in "investing" than in "trading"? (Granted, the categories are not entirely clearcut and there's doubtless some overlap between the two.) That's doubtless potentially in your favor (and "bigly", as some people say), provided you also acquire the appropriate risk-management skills to use that background productively.
Pretty good advice here.... With the caveat I'd point out that over the last 6 months there have been coins that show resilience when Bitcoin drops. Its loss in market share has strengthened others and it seems there's a bit more "stability" with some alts. OP, Right now it's a speculative market. I've maintained somewhat stable growth and currently hold about a dozen coins. I'm well aware that this could be worth next to zero at a moment's notice so don't even consider it an investment. My best advice is don't just focus on market cap or meteoric rise (though it's a start), but also the underlying problem the coin/tech aims to fix. Good luck