I consider Bitcoin to be a core part of the portfolio, one of my key positions. Adjusted for risk, no asset offers a better investment profile.
Even when the market is overwhelmed and overpriced, the long-term growth potential makes Bitcoin a breeze. With the support of Wall Street and many developers creating products and services that use Bitcoin’s blockchain or use Bitcoin as a reward, I have no doubt that Bitcoin will remain an important and growing financial asset indefinitely.
Bitcoin has its own assignment that is separate from my altcoins. I never mix my bitcoin with my alts.
I put altcoins in the same bucket as my private equity investments. The goal is to make big losses or gain oversized stakes in new businesses that will turn into long-term assets that I can sell if necessary.
I usually don’t balance or swap alts. I also keep about 60 of them, which can sound excessive.
Here’s the thing: Chances are, 90-95% of the altcoins will fail. Most already have.
That leaves around 500 to 1,000 great, legitimate projects to choose from. Lots of moon shots, lots of options, but no one knows today which ones will win tomorrow.
Those who succeed will see that the prices of their tokens are so high that it will amaze you.
As long as you are buying tokens for legitimate projects designed to harness the value of growing their networks, you have an amazing asymmetrical investment opportunity. You are risking a small amount in exchange for the chance to see your wealth grow massively.
You can spread your investments across many altcoins, most of which you expect to fail. Your winners cover your losers many times over and grow far more than Bitcoin.
But you need to have enough altcoins invested in to make it worth it. Bitcoin has you covered for the long term – you can keep a relatively small portion of Bitcoin for security reasons and then put most of it in high reward opportunities in the altcoin space.
Why don’t i exchange
Because I prefer to spread my investments over many projects, let the winners run and the losers go to zero.
Then I write off the losers in my taxes to get back 20-35% of my investment.
I keep the winners forever (and only pay taxes when I use or sell their tokens). Your winnings could reach 1000 times or more. Some have already surpassed 100x. I only need a few to be successful.
During the off-season it doesn’t matter if you have 5 or 50 altcoins. Your portfolio will grow.
What happens after this massive FOMO LAMBO MOON mania? Are you that good or lucky enough that you can find the few altcoins that survive?
For this reason I buy up to a fixed USD allocation and then let the market take over.
Since I stop buying as soon as I reach a certain allocation, I always have fresh money to buy the tokens for new projects that I discover along the way. In Crypto, the pace of innovation is ridiculous. You need to have cash on hand for new opportunities as they arise.
Whenever I can bet, I bet. I see this as a kind of passive income that is reinvested in the networks of related projects.
Read my strategy for the off-season for a more complete look at altcoins. It’s from December 2020, but still relevant, even more so after this mid-season ends and before the next one begins.
In the long run, most cryptos will die. Bitcoin almost certainly won’t. I like having a nice core position in Bitcoin, with most of my investment being in the altcoin space.