Altcoins represent any crypto that isn’t bitcoin. These are alternative coins (because different from the original crypto) and are called altcoins. There are several categories: large cap altcoins, medium, small and very low. Logic dictates that the lower the capitalization the more the risk increases because the volume of trade and therefore liquidity decreases, the teams are smaller and more experienced.
Role of altcoins’s simple, to accumulate more bitcoin. If you invest some of your capital in altcoins with the intention of accumulating them to accumulate in order to sell them when they are adopted globally, you are wrong.
When choosing to invest in an altcoin, you have to define a plan : if the project hasn’t moved forward within 2 months, I’ll take out so much capital; If the team fails to meet their deadlines, I’ll take out so much capital; If I lose 20% within 1 month, I’ll take out so much capital.
These are rules that will allow you to protect your capital, because principle of altcoins’s to accumulate more bitcoin, if you start to lose some, you will have to react and have a strategy. Most say to themselves : it doesn't matter if I lose, what matters to me is the price in 8 months! This is indeed true, but it is also the best way to stop being able to take your capital out of a losing position underwater.
My goal’s to educate you on how to protect your capital. That’s our own way of approaching crypto market. Others will tell you to buy this or that altcoin and forget about it for 2 years. My experience has taught us that this hasn’t been the best strategy to do since the end of 2018.
Altcoins can be a tremendous leverage and will give you a lot of experience, but there are rules you will need to follow so that you aren’t exposed to too much risk which leads to ruin of your capital. Risk’s very high. We’ll keep repeating it. Adage « not sold, not lost » is a lie, window dressing: once you lose, sell or not, your loss is materialized. You just haven't materialized that loss emotionally. But your capital’s gone and will not come back. That’s way you have to look at things to know how to move forward and be responsive.
Dealing with altcoin speculation there’s a process you need to go through. Define allocation percentage in relation to your total and for how many alts. Then define what type of alt to buy (more or less large capitalization), in which branch (type of industry it deals with), then fundamentally analyze if project’s undervalued and thus define your entry and exit plan.
It’s very easy to lose speculating money in that market, just because it’s accessible to everyone doesn’t mean that it’s convenient / easy to make a profit. Altcoin market’s very volatile, constantly changing, extremely responsive to emotions, manipulated by whales. These characteristics make life more complex for less experienced traders and investors.
I share with you strategies, analyzes, resources and real-life cases to understand how to navigate this jungle of altcoin. It’s an ecosystem that’s changing every minute of every day. Better to take advantage of a community to learn faster, especially in a market so young and full of opportunities.
