Crypto has changed.
I made most of my money last year buying stuff and holding for 6-12 months.
But that doesn't work anymore.
The longest you can hold something has gone from months to weeks.
Why?
Every new coin or project that is created challenges all of the existing coins.
The president of the United States launches a memecoin and brings a ton of attention, legitimacy and users to crypto.
Great news right?
Well every bag besides btc, sol and $TRUMP got killed.
The people who were holding crypto and bullish on this sector got destroyed from this.
(if their portfolio wasn't mainly btc and sol)
Berachain announces they are launching on february 6th.
Great news right?
Well Abstract ecosystem got killed as people expect attention to flow to berachain next.
So what do you now?
1) Understand that pandoras box has opened and this environment isn't going to change.
It is only going to accelerate. More coins, more chains, more projects. Every single year.
2) What i'm personally doing is holding more btc and stables.
I have massively reduced my longer term altcoin positions the last few weeks and it only makes up roughly 5% of my portfolio now.
3) Focus on trading alts, not investing in them.
Do not be the last believer in a project and become a bag holder.
Buying any coin besides btc with a longer term thesis this late into the cycle probably doesn't have the best risk to reward imo.
----
Who knows, maybe this posts marks the bottom on alts.
But I find it extremely unlikely to see every coin, nft, chain etc... pump at the same time and reach new all time highs similar to last cycle.
There's just to many new coins launching every day that steal the attention from existing coins for everything to do well.
This post was heavily inspired by a chat with @liam_xbt. Highly recommend following him!
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Last week, news of Circle’s $USDC reserves in collapsed Silicon Valley Bank caused investors to flee to safe havens. However, some traders saw the $USDC depeg as a profitable opportunity.
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