(Continued from Altseason Playbook, Part 5 of 6)
In my last post, I offered some perspective on how to choose between two altcoins that do the same thing. In this post, I write about today’s super-hot crypto market and what it means for your investment decisions.
This article is adapted from my December 17, 2020 special issue of Crypto is Easy. To read the whole post, including more tips and commentary, visit Bitcoin hit $20k! Prepare for Altseason.
Do you miss the opportunity to build your altcoin portfolio from January 2019 to December 2020?
Do you feel like everything’s overbought and prices are running away from you? Like you will never have a chance to buy altcoins at this price? Like you need to buy now before somebody else comes along and pumps the price higher?
Or perhaps, you’re super-excited about a chance to flip and trade altcoins for big gains. What’s the next 1,000% crypto?
Maybe you feel the DEX fees, gas fees, trading fees, and withdrawal fees are worth the chance to get your crypto now. The cost of doing business.
You’re right. It’s a hot market.
While you can’t deny the possibility altcoins will cost more in the future than they do today, nor ignore the potential for multiple 300% swing trades, that doesn’t mean you need to stress or chase after whatever altcoin’s pumping at any given moment.
Life will give you many, many chances to make money and build wealth. Crypto has already given you lots of those chances, too — and it will again.
If you wait for those opportunities, you will not need to worry about anything that’s happening today.
Does that mean you shouldn’t buy anything?
No, but it’s never a bad thing to consider your mental health and personal happiness. That’s worth something, too.
Opportunities come after altseason, too
Typically, when making investment decisions, you want to look at risks and rewards. Great opportunities never come cheap. What do you stand to lose vs. what do you stand to gain?
For example, if you bought Ethereum at $10 and sold it at $100, you made 10x on your investment.
If you bought Ethereum at $100 and sold it at $1,000, you made 10x on your investment.
If you bought Ethereum at $1,000 and sell it at $10,000, you will make 10x on your investment.
Same result, regardless of price.
If Ethereum gets to $10,000 before the market crashes.
After altseason and the inevitable crash that follows it, you will almost certainly have an opportunity to make 10x on Ethereum, even if its price ends ups higher in the future than today.
Nothing about Ethereum’s value changed when the price went up, nor will it change when the price goes down. Only the opportunity changes.
Why buy Ethereum at $2,000 when the risks are high and the upside is low, instead of waiting until the risks are low and the upside is high?
Of course, after altseason, you may have to wait a while to get those 10x gains, but think of it this way:
You already missed a chance to buy altcoins when the risks were low and the upside was high. Do you want to miss it the next time, too?
I have a research service, Altcoin Insights, designed to find hidden gems among small altcoins that haven’t gotten the exposure and recognition they deserve.
During altseason, this type of service is irrelevant. Everything goes up. FOMO and greed will always beat thoughtful analysis.
After altseason, this research will be incredibly valuable. Most analysts won’t even bother looking at these small altcoins, because nobody cares about them and it takes a lot of courage to hang your hat on a project nobody cares about.
Still, I’m doing ok. My recommendations beat the overall market by 85% as of February 12, 2021.
Compare my Results to the Overall Market at This Moment
If you’re interested in accumulating long-term stakes in great projects, check out Altcoin Insights before it’s too late. I will close the service to new members on February 15, 2021.
Check out Altcoin Insights
For a 300% swing trade on the next hot thing, Altcoin Insights won’t help you. Telegram, Discord, Reddit can do far better.
If you’re interested in buying a stake in the networks of the future, you might want to give Altcoin Insights a look.
Thanks for reading. Make sure you caught my previous five strategies!
- Strategy #1 — take inventory of all your assets and debts
- Strategy #2 — bitcoin-to-altcoin allocation
- Strategy #3 — look down before you look up
- Strategy #4 — spread the wealth
- Strategy #5 — remember maths
Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio.
Originally published on Voice.com.
