If there is attention paid to the CoinMarketCap, it is all but natural to get easily overwhelmed as the site is claiming that there are more than 5,000 crypto assets which are in existence currently from the relevant ones like Ethereum and Bitcoin to the others which are a lot more obscure such as PepeCash and Embercoin.
Every coin purport to having their own particular use case which is viable and this means that there is a potential of outperforming ETH, BTC and a few other assets digitally. Therefore, a culture of diversification in portfolio has been spawning in the investment space of cryptocurrency with a few analysts giving a recommendation of putting their Bitcoin to a swath of coins instead of putting their focus on a single or two coins.
This was relevant particularly in the year 2017 and the early parts of 2018 when the altcoins and the non-BTC assets had exploded higher and gained a lot of percentage points as there was speculation which was rampant and had graced the market.
However recently a few reports suggest that this diversification of cryptocurrency has been going wrong in a horrible manner.
But according to a recent Reddit post, diversification in the crypto space has gone horribly wrong.
It was revealed that at the beginning of the year 2019, there were $100 put by someone in the top 10 assets by the market capitalization.
While a lot of the investors may think that this would have led to a good performance, it was far from that as the rally in the stocks apart from Bitcoin could do nothing to match up to the levels of rise of Bitcoin therefore his strategy took a major pounding.