<p>I don't see how different coins would protect against volatility, as Bitcoin is by far the leading cryptocurrency, and the others (even all of them combined) are really totally insignificant in terms of market cap and trading volume. </p>

<p>If you want to protect against volatility (given that you measure volatility in terms of value expressed in fiat currency), there's two options:</p>

<ul>
<li>use <a href="https://coinapult.com/locks/info" rel="nofollow">Coinapult Locks</a></li>
<li>keep part of your money in fiat</li>
</ul>

<p>Simple as that. Seriously, just not investing part of your money in something is the best and easiest way to suppress its volatility.</p>

CC BY-SA 3.0
2014-11-04T12:01:18.477Z
what do I care for total trade volume when I have (say) 1 Btc, 1 litecoin, 1 dogecoin?
mart
CC BY-SA 3.0
2014-11-04T12:07:06.090Z
+1 for coinapult. At first glance that seems interesting (I'm Tom from their example page). Just don't know yet how to trust them.
mart
CC BY-SA 3.0
2014-11-04T11:36:20.903Z
2014-11-04T11:36:20.903Z
RocketNuts
<p>You should see *coin as a <strong>very high risk</strong> asset. The strategy "diversify your investment" only works on regular stocks since people generally see the markets rising over large amounts of time on established companies. (The fluctuations average in accordance to the <em>law of large numbers</em>)</p>

<p>It is much more risky to invest in something completely new no-one has genuine, long-term experience with. Stating that, the <em>law of large numbers</em> cannot be applied since chances are equally high for rates to explode or crash. </p>

<p>tl;dr <strong>Diversifying does not really work on *coins by now</strong></p>

CC BY-SA 3.0
2014-11-04T11:58:29.563Z
2014-11-05T15:56:45.410Z
2014-11-05T15:56:45.410Z
aoeu
<p>There are services emerging to combat the volatility of Bitcoin. Bitreserve is one. But to be honest if you are worried about the volatility, just keep your funds in your native currency and buy bitcoin when you need bitcoin since there are plenty of places you can buy bitcoin almost instantly.</p>

CC BY-SA 3.0
2014-11-05T06:56:45.030Z
2014-11-05T06:56:45.030Z
George
<p>I'm interested in *coin, but I'm afraid of sinking money into something out of idle curiosity and then losing that money to value fluctuations. Would it be a good idea to have several different *coin (lite, doge, idk what else there is) so that the fluctuations balance each other?  </p>

<p>Have different *coin in the past gained and lost value in 'lockstep', or totally independent or inversely?</p>

<p>I'm aware that I would also loose the chance to gain money from course fluctuations, but I don't that's <a href="http://blockchain.info/de/charts/market-price" rel="nofollow">something to loose sleep over</a>. </p>

CC BY-SA 3.0
2014-11-04T11:25:24.213Z
feel free to add appropriate tags!
mart
<altcoin><value>
Would it be a good idea to have several different *coin to protect oneself from fluctuations?
mart
# Would it be a good idea to have several different *coin to protect oneself from fluctuations?

(Asked by: username_0 on 2014-11-04)

I'm interested in \*coin, but I'm afraid of sinking money into something out of idle curiosity and then losing that money to value fluctuations. Would it be a good idea to have several different \*coin (lite, doge, idk what else there is) so that the fluctuations balance each other?

Have different \*coin in the past gained and lost value in 'lockstep', or totally independent or inversely?

I'm aware that I would also loose the chance to gain money from course fluctuations, but I don't that's [something to loose sleep over](http://blockchain.info/de/charts/market-price).

**Tags:** altcoin, value

> **Comments:**
> **username_0**: feel free to add appropriate tags!  

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## 3 answers

### Answer by username_1 on 2014-11-04. Score: 1

I don't see how different coins would protect against volatility, as Bitcoin is by far the leading cryptocurrency, and the others (even all of them combined) are really totally insignificant in terms of market cap and trading volume.

If you want to protect against volatility (given that you measure volatility in terms of value expressed in fiat currency), there's two options:

* use [Coinapult Locks](https://coinapult.com/locks/info)
* keep part of your money in fiat

Simple as that. Seriously, just not investing part of your money in something is the best and easiest way to suppress its volatility.

> **Comments:**
> **username_0**: what do I care for total trade volume when I have (say) 1 Btc, 1 litecoin, 1 dogecoin?  
> **username_0**: +1 for coinapult. At first glance that seems interesting (I'm Tom from their example page). Just don't know yet how to trust them.  

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### Answer by username_2 on 2014-11-04. Score: 0

You should see \*coin as a **very high risk** asset. The strategy "diversify your investment" only works on regular stocks since people generally see the markets rising over large amounts of time on established companies. (The fluctuations average in accordance to the *law of large numbers*)

It is much more risky to invest in something completely new no-one has genuine, long-term experience with. Stating that, the *law of large numbers* cannot be applied since chances are equally high for rates to explode or crash.

tl;dr **Diversifying does not really work on \*coins by now**


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### Answer by username_3 on 2014-11-05. Score: 0

There are services emerging to combat the volatility of Bitcoin. Bitreserve is one. But to be honest if you are worried about the volatility, just keep your funds in your native currency and buy bitcoin when you need bitcoin since there are plenty of places you can buy bitcoin almost instantly.


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