Within the crypto investor community, there is strong consensus on the “why” to diversify your portfolio. But an often overlooked variable is “when” to diversify. The difference can make more than 3X difference in the number of coins/tokens you end up getting in a reasonably short term.– @its_teknas
This is written with the assumption that you’re bullish on crypto space as a whole, and are only looking at diversifying and not dis-investment.
Learn by Example:
Assume you want to switch from DOGE to CAKE which is a new exciting project you have recently found. Depending on when you perform the switch, you can end up with upto 3X the amount of the new coins. As you see, if we would have switched on 3rd May 2021, we would be paying roughly 100 DOGE for 1 CAKE. But doing the same switch on 23rd May would be giving you 1 CAKE token for only 40 DOGE coins which is more than a 2X change !
The tool c2cratio.com enables you to perform such a conversion using any coin as a base for any other coin which may or may not exist as a direct trading pair on any exchange. Using this you can make smart decisions on when to diversify your crypto portfolios.
Suppose there is a overall market collapse and you’re current coin holdings are 10% down. But an interesting project you’re looking at is down 15% or more. Then although it’s a bad time to sell while you should be hodling 😅 or buying the dip, it provides an interesting opportunity to switch from one crypto to another one. If you sell your holdings altogether, you’re risking to disinvest and expose yourself to market volatility. If you sell one and quickly buy another, you stay invested while gaining the advantage in quantity on the other coin. You may switch back to your primary coin later if you choose to.