7d • General discussion
ALT Coins - HODL
Evening all, I have attempted to post in the group several times, started to write and got pulled away never to get back to it. So I thought I might post something short and simple, see how you all react and then continue forward from there.
I’ll start here…
General Observations for Investing in Alt Coins
What most folks don’t realize is that Alt coins are long duration assets. They think of fast money, get rich quick and become frustrated in short order when they figure out that they didn’t buy the bottom and the volatility is extreme.
Retail investors often sell bottoms and buy tops.
To make the multiples you dream of takes years of conviction and holding. DCA strategies trump trading and trying to buy local bottoms. It’s not sexy and the dopamine hits you get from shorter term moves tend to be short lived or non existent. However the upside potential is HUGE. Bigger than anything currently available in TradFi or Leverage Trading.
So doing solid research on a project, then deciding to invest means you will need to set some parameters around your holding strategy and what you will do if your coin drops between 10-99% in its USD value. Do you a stop so you can de-risk? Or are you willing to buy your average down? Or possibly hold through some big swings if you’re out of cash? And of course the opposite is true of where to sell. If you’re up by “X” you are ready to take a % off the table. Or is the plan to wait for euphoria and start to scale out? Risk management as they call it.
Let’s pause there, but continue soon.
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ALT Coins - HODL
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