Why Diversification Isn’t Always the Best Strategy
They say that a new investor is usually advised to diversify investments. In the case of altcoins, this sometimes could mean reduced potential gains. Instead of diversifying your investments across many cryptocurrencies, it might be better to just focus on a few with great fundamentals and potential to grow significantly.
In today’s video, I go into detail regarding which coins I’m highly invested in and why, and how you can apply a similar principle to your investment strategy.
My Top Altcoin Holdings
- Jupiter (JUP): For now, Jupiter sits atop the pile of what I hold. I bought between $0.50-$0.60 from the cheaper regions. The latest show was a 70-80% profit. So go ahead and buy if it drops under $1. But then, if you missed the main entrance, you better be making way for a better entry point.
- Ondo (ONDO): Another important holding sold 0.40-0.60 and trading at 0.9 now. Has really been a performer and if you have not entered, can consider doing so at this level.
- Aptos (APT): Aptos’ aptly named token, APT, remains one of the stronger contenders for potentially higher returns. Works have fluctuated some, but it’s still currently in a good buying zone. Its previous high is above $20, and it’s currently trading well below $8, hence an attractive entry.
- Arbitrum: Yes, highly volatile, but well, it is one to hold onto. Picked around $0.9 and went to $2.5 before this; this market now gives a good opportunity to buy.
- NEAR Protocol: This is a very nice long-term investment. At $4 or $5, while it may be high in percentage terms of growth, that is a nice buy if you want to get something which is not that volatile at the moment but has decent growth in the future.
- Fetch AI (FET): The long-term potential coin remains, but it has seen big gains. The price is good at the moment for entry, and it’s super well-justified from the action of the past.
Insider Updates
- Frontier (FRONT): Frontier is doing a self-chain migration, and that will pump the price. We have purchased this coin around $0.4 and $0.6; it’s already done a 4x. Stat alert: stay tuned for updates, furthering price movements.
- Notcoin: Yet another less popular, yet most definitely a part of my portfolio, is currently trading at $0.014. Whenever this falls to not more than $0.01, find a reason to own it. This too has potential over the long term, with almost all the disadvantages offset by the advantage of buying at the right price.
Effective Investment Strategies
- Dollar-Cost Averaging: Dollar-cost averaging is an investment strategy whereby equal quantities of money are invested regularly, regardless of the changing price. This reduces the risk of market volatility and dilutes the impact of poor timing. Market downturns actually mean you get to buy more at lower prices.
- Booking Profit: In case some of the coins have huge gains in the short run, it is good to book profits from time to time. This secures the profit and provides capital to invest in other opportunities.
- Principal Protection: Take out your principal when investment doubles for longer-term holds, letting the profit grow. This protects your principal but also helps in benefiting if the price goes further up.
Conclusion
This requires a critical investment in altcoins and a thoughtful approach to the market conditions. Strategic investment in just a few with high potential, complemented by some relevant investment strategies, is bound to set you up for great returns in the next bull run.
Action Steps
- Engage in an intensive review of your current holdings; make some look-arounds in respect of possible necessary adjustments to be made on advice given.
- Strategic Buys: Find appreciation in the suggested coins at undervalued prices.
- Education is Key: Follow insider updates and market trends, and act at just about the right time.
- Subscribe for More Insights: Hope you enjoyed this video; subscribe to my channel for more updates with in-depth analysis on your crypto investments.
Feel free to leave your thoughts in the comments section below or ask any questions regarding investment strategies you have, or possible topics you would like me to cover in the future.
