If you are constantly browsing coinmarketcap for 2 hours or more a day looking for the next hidden gem coin that will make you a millionaire then this might be a good read. While I think it's important to keep up with the market and probably knowing the price of Bitcoin every day if you plan on trading frequently, it's clear that there are many coins and projects out there with lots of risk.
But what does it say about your investments in crypto if you are currently invested into 10, 20, or even 30 different cryptocurrencies? Well I think that it means that you were not confident enough to just choose 1-3 cryptocurrencies that you really believe in.
For me, I learned my lesson about investing in too many different projects in the last bull run. I didn't have a lot of money at the time to put into crypto, so I put some of my money into Bitcoin, some of my money into Ethereum, and I put some of my money I had to invest in projects like Iota and Tron because I could see tons of excitement about these projects at the time. I also put some money into riskier projects with potentially higher ROI's like Dent coin. While I ended up making good investments in the last bull run, I could have made a lot more money by investing into fewer projects/coins I was really confident about.
I also invested some of my portfolio into Dent coin around November 2017, and managed to turn about $200 into $15,000 before I waited too long to sell it and only came back with a few thousand dollars from this investment. I should have invested at the time something like 50% of the money that I had in crypto to invest in Dent coin and 50% of the money I had into Bitcoin.
For example, let's say that you have $1,000 that you want to invest in crypto right now. If you find 10 projects and invest $100 into each, if the marketcap of these coins is extremely low it's possible that you could make a good return on your investment but it's probably more likely that you end up making a few hundred dollars to potentially a few thousand dollars if we enter a bull market. However, let's say you choose that your favorite project as Dent coin, and you invest $900 into Dent coin which will currently buy you about 1 million tokens. Let's say you have faith in the long-term value of Dent coin, so you are confident that it will reach it's previous all-time high of about 10 cents.
The return on your investment in Dent coin here would be about $100,000 which is more than likely a much better return on your investment than investing into 10 different extremely high-risk cryptocurrencies. I'm not saying that Dent coin isn't a high risk coin to invest in, I'm just saying that if you're confident in a project then you should be confident enough to make it a larger part of your portfolio. Also, I've been trying to find this website again because this helped me in the last bull run, Cointrackr is a great deal for tracking your crypto investments in a pie chart, which helps you visualize your largest investments a bit more clearly. https://cointrackr.com/ This website also tracks you with cookies, so unless you browse privately you will be able to see your portfolio just by updating it with your coins and then re-visiting the website. I'm not sure we all want to be tracked though.
I have recently been reducing the amount of cryptocurrencies as a whole that I am invested into because the lower the trade volume of the coin or token right now, it's seems to me the more likely that it will not be around once the next bull run starts. Coins that I believed would have a good chance of sticking around for the next bull like No limit coin, a fantasy sports betting token, have low trade volumes and could possibly be delisted from some of these popular exchanges like Bittrex, we'll see. So my advice would be to choose a few cryptos that you are confident with and start to make these a larger part of your portfolio. However, I am not a financial advisor, so this is just my opinion. We've had a few positive days in the green now for crypto, but I think we need to see a few weeks worth of growth before we announce something like the end of this bear market