It is proven that, at least in the stock market, diversyfing in 3 stocks is enough to outperformed the market and/or reduced volatility of having only one stock. Remember most altcoins are correlated with BTC.
Cryptos are like Pokemons to me, I want to own them all. I just cannot stop myself...
In a bear market, I can't beat Bitcoin with this portfolio but I wonder if in a bull market it can outperform the bear result. What are your thoughts?
I am not a trader, but would you take some profit each time one of this tokens is pumping ? If yes, would you buy stablecoin or something else with it?
Oh yeah! I also believe that almost any altcoins can beat BTC in bull trends. The only problem I see is that if bull market takes too much time to arrive, that can affect your balance badly. Yes, I would take profits. I learned it with pain from the crashing of May 2021 due to ban in China. If I am not wrong, FIL went up almost %600 in the previous month, but I was "mr. investor" so I just hodl and decided to wait. Next month, FIL crashes near 40% in a couple of days!! So, now I believe in taking profits when I see the opporunity. I prefer to regret selling with premature profits than selling during a large drawdown after a big run.
I prefer now to save a bit on stablecoin such as USDT. Once I reach a goal of savings, I can consider to reinvest in the same or another coin, but I take into account also the overall performance of my portfolio and state of the market
It is proven that, at least in the stock market, diversyfing in 3 stocks is enough to outperformed the market and/or reduced volatility of having only one stock. Remember most altcoins are correlated with BTC.
Thank you Guille, very interesting.
Cryptos are like Pokemons to me, I want to own them all. I just cannot stop myself...
In a bear market, I can't beat Bitcoin with this portfolio but I wonder if in a bull market it can outperform the bear result. What are your thoughts?
I am not a trader, but would you take some profit each time one of this tokens is pumping ? If yes, would you buy stablecoin or something else with it?
Oh yeah! I also believe that almost any altcoins can beat BTC in bull trends. The only problem I see is that if bull market takes too much time to arrive, that can affect your balance badly. Yes, I would take profits. I learned it with pain from the crashing of May 2021 due to ban in China. If I am not wrong, FIL went up almost %600 in the previous month, but I was "mr. investor" so I just hodl and decided to wait. Next month, FIL crashes near 40% in a couple of days!! So, now I believe in taking profits when I see the opporunity. I prefer to regret selling with premature profits than selling during a large drawdown after a big run.
Nice F(a)IL ;)
So do you take profit with stablecoins or do you reinvest in the other alts ?
I prefer now to save a bit on stablecoin such as USDT. Once I reach a goal of savings, I can consider to reinvest in the same or another coin, but I take into account also the overall performance of my portfolio and state of the market