Bitcoin Forum

Hello guys
I am starting to go into trading and holding altcoins for myself, I got to understand that there are over millions of altcoins to choose to invest in, so I decided to come up with a strategy that would help me choose the best coins to hold as the bull run is around the corner. I went to coingecko and decided to choose coins from different categories, what do I mean, coins fall under certain categories like the layer 1, layer 2, Memes, infrastructure, Blockchain ecosystem, smart contracts platform, web3, and the rest.

What did I do, I choose the first 5 coins under these categories and decided to buy and hodl them with 50 USDT each. Am I on the right track or is there any other way I can do more better.

Well it is definitely good to diversify your portfolio and it is even better that you are buying coins from different categories i have no advice about whether you should change your strategy but i would only want to warn you because these coins being in different categories means they should also be approached in different ways some coins require more attention because of the volatility of their market meanwhile some other coins can be held for long-term and is expected to increase constantly

You're pretty much just doing the spray-and-pray method, just hoping that you hit it big on some of your random picks. Will this work? If you're lucky then sure; not a fan of it though. I'm personally more of a fan of making specific picks by reading docs.

I would suggest you to conduct  through research of top-20 project on coinmarketcap, carefully selecting, and understand each project, its technology and goals. team and community support before making investment decision.

During the bull cycles in the cryptocurrencies market, beside Bitcoin and Ethereum, it has been noticed that narrative often play significant role The narrative of next bull market could be Real World Asserts (RWA) and Artificial Intelligence (AI). Therefore, it would be prudent to make some investment in these two sectors, taking in account your financial situation, financial goals and risk tolerance level.

Spray & pray can work but I also don’t do it. Many of the people who got in early on coins like PEPE are proof it can work though. If you’re going to buy a bunch of altcoins though I recommend that you try to do as much research as possible. Buying blind is OK if you allocate a small amount, hoping to strike it lucky.

I think in some way it helps in getting good profits and recovering from loosing. Having invest in five different Altcoins, there is every tendency of loosing two out of the five, so the profits from the rest will help recover back the loss. In the case of selecting just one out of many, it is either you win or you loss. I think this method is difficult to operate with, the spray-and-spray method is much better.

For as long as you did your research and you have the confidence then you're good. I assume you have a total of $250 as a starting capital. If I were you I'll just trade the whole amount. Stay away from leverage trading and better do it on spot trading. Leverage trading is only for those that have huge trading experience and you can feel it later on if you're ready or not. So you just focus on the spot trade. In spot trading you need a little bigger capital and $250 should be good enough.

If you want to buy altcoins and just HODL with a $250 capital, I'll probably just pick 2 coins at $100 each. $100 each for bitcoin and ethereum. If you can save regularly, you can invest in bitcoin, ethereum, and some other altcoins monthly or at a timeframe fit to your economic situation.

my advice is to avoid meme coins because they are not worth investing in. it's better for you to focus on investing in popular coins because they have a better track record compared to meme coins which only rely on speculation, but if you only want to gamble on these coins, that's your choice.

Portfolio diversification :) , perhaps a misunderstanding of a common market. I think applying it depends on the scale in the investment process and here with altcoins, you only think about profit target. Are you willing to take the risk? For me, altcoin is something that I think saves more than bitcoin, but the investment portfolio with it only accounts for a small part. Perhaps due to perception and strategy, there is not much to contribute opinions to. I know some of the reasons that many people like OP are paying attention to these keywords in space, although I also think it's an opportunity, but honestly it has many risks because just one fluctuation in bitcoin will cause most altcoins to drop.

The altcoin FOMO in this period I see has many similarities with the periods when money flows into the market, short-term perspective when capital flows into bitcoin > distribution > top altcoins > mid-range altcoin distribution > strong trend altcoins tone > shitcoin distribution, a complex process by which sharks can accumulate more stock and liquidate profits. So, if you have your own strategy, be realistic about the risks, and be ready for unfavorable scenarios.

I don't know exactly which coins you decided to invest in. As you diversify your altcoins investment, you can benefit from it. If you invest in five altcoins, you spread the risk associated with any single coin. This means that if a currency underperforms or suddenly drops in value, the impact on your overall investment portfolio will be minimal. If one or more of your altcoins performs exceptionally well, it can offset any underperformance in other coins, leading to a return on your investment.  But be sure to learn more about the performance of each altcoin in your portfolio, the broader market trends and developments, then jump into investing.

did you just choose the altcoin you chose based on the criteria you mentioned? I mean do you do your research first after you decide on an altcoin that might interest you?
splitting investments across multiple assets is not bad. but the way you choose assets and market opportunities must also be planned. It's not just buying and waiting for a pump to happen because the altcoin you bought might be popular.
I've never done that, but maybe if your method works in the future you can share it here. and I will be happy with your story.

For me, I don't really know what you mean by the right track, but if you feel you're doing something good, then it is what it is. From what you have chosen, I just hope you don't lose all, but with the way you arrange them I also believe that at least out of 5, 2 should go as planned in each category, but if it goes sideways, you should be responsible for your actions, right?

Like someone mentioned here, just try and do some good research on each of the alts to be a little bit hopeful. Also, be guided by the wallet you might choose to store them in, and I hope you make a good profit as an investor.

On the initial path, try different methods and tactics, one will definitely suit you, the main thing is to try not to take too many risks so as not to get a bad experience, it will greatly demotivate you. Make smart choices, your understanding of the fundamentals of each coin can help you make more informed decisions.

Yeah for sure, did a thorough research about them before acquiring the assets, I mostly looked at the community fan based, companies behind the project, and the developers as someone said here, I didn't just pick them like a newbie lol

Make sure you understand the fundamentals of each coin you're considering, such as its uniqueness. Look into the team behind the project, the technology, the use case, and the overall vision. You should also consider the long-term potential of the altcoins you're holding. Sometimes, choosing between well-known projects and new promising projects can make decision-making challenging. I would prefer the well-established ones because promising projects offer no guarantee that their roadmap will be followed.

How many coins or tokens are we talking here? If you've bought more than 20 already with $50 each then you should probably rethink now. I think you are better off finding your top 5 and focusing on building volume first before spending $50 on what I call as lottery bets.

OP mentioned first 5 under each category so it's not really that random. I also tried his search method and what is shown is the top 5 coin in marketcap per category. It's still not the recommended investing strategy but it's not as risky on a bullrun I guess.

Appreciate you are thinking on these line of diversifying your portfolio but it won't work as you may end up losing it all.

No one can be 100% or can give accurate guidance because accurate speculation is a myth and I would suggest you to go ahead with Altcoins which has promising projects and a professional developer team who has already achieved something in life, basically I am asking you to do research on the team who's behind altcoins but this would be difficult task hence I would suggest you to first list down the altcoins which you think would work (excluding mes and NFT) then start doing research. Else stick to Bitcoin and even if you want to do this experiment then do it with seasoned altcoins not new ones.

You're free to make an investment in any altcoins of your choice, just know that the risk in them is also on you as well, it is a normal thing to always make research about a digital coin before Investing on them, check about the developers, the previous performances and the current status of where the coin is through the statistics you would have obtained from its market volume, market cap and the likes, then lastly, invest the amount of money you can afford to loose on them.

Is $50 is your maximum capital? If that is just a small capital I suggest not to over diversified and just invest on a good coin.
If you are going to diversify make sure that you can cover the fees and other cost, I suggest to at least hold $100 for every coin/token that you are going to invest. There's no million of altcoins yet, and I'm telling you looking for a smaller project is too risky, while you are still newbie better to deal with the top 20 coins first.

It's a good idea to diversify your portfolio depending on the nature of the coin. But we also need to consider other minute things that could lead to the success of the coin. On diversification, the ratio could be different depending on how much risk you want to take. If you want to have lower risk, you can keep 50% of your investment on established alts.
You should also keep the development of each coins you invest and readjust the investment periodically depending upon how they are performing. It's a better idea to take profits now and than on the volatility of crypto market and add more when you can decrease your average price.

do you mean you bought 5 leyer1 tokens, 5 memecoins, and all with $50 each?  

it seems to much of a diversity. you could have just chosen top tokens in the ranking and you still have a higher success of making more profits than gaining less because not all of them can spike up to 10x in the bull market.  choosing 5 out of the top 10 on CMC will still be the best imo. you sure will have so much to sell once you learn not all of them are going up.

I think newbies are probably the only people who invest in meme coins without realizing it. I'm not saying that newbies only invest in memecoins. Those who originally invest expect to make money.  They will never want to waste money by investing in meme coins. Some people like to invest in meme coins. But we always have to think and invest in some good coins.

You decide random coins therefore it is not guaranteed that all your coins can give you profit although diversification can decrease the chance of loss but if the selected percentage of wrong coin is more than you will also face more loss. If I was you then I will select top altcoins or bitcoin and among top altcoins first coins will be etheruem.

I don't know which meme coins you have selected but not all meme coins are alike therefore too much trust on it will cause money loss. Diversification is a good strategy but don't be in too diverse range that you randomly choose all useless coins because such Diversification can just lower the value of your money therefore prefer top coins first.

50$ is enough for those who cannot afford more money because investment is not about to force anyone but its a personal decision. Diversification is better in a case if you choose better coins because some people make huge Diversification but they have at least not a single beneficial coins which means that they are not in profit.

If a person has no sense or no knowledge about selection of beneficial coins just select those coins which are trustworthy and there no better coin other than bitcoin as well as Ethereum and BNB. Smaller project investment is risky but sometimes these small projects make you able to earn more than a popular project like Matic was not a big project from start but now its achievement is appreciable.

If the project is unique and all the items that you said there are okay, then they can likely survive for a long time. But it's only up to us if we will straight HODL for a long time, because we can also sell at each peak and just buy back to HODL again. I think that is even better? Because, we already tasted the victory.

We can feel less regret this way even if the project shifted its direction and never recover again. The reason on why some prefers new project is due to hype. And we know that hypes are short-lived only. So why will we take more risk by holding any longer, when we can just drop the nearly expiring hype project and switch to the new one? There were lots of them.

Diversification of investment is always a nice thing to do. And all successful businesses and investments are started with small so the amount you starting is okay because you are investing according to your pocket or income. But invest on the popular altcoins in the cryptocurrency ecosystem because if you invest on some, you might loss out. And just like the ones I saw delisting by OKX exchange and if you invest in such project and the value decrease then you be at the losing site.

So when investing in altcoins look well. Make some research before investing.

Choosing 5 altcoins from each category seems to be a smart move, chances are that an investor will not loose in all of them, although he needs to understand that speeding his risk might not give him what a few well researched altcoins can profit him. I like the term"spray and pray", I'm hearing it for the first time and I think that it matches the OP method, although just like experienced members like you people, I'll also not adopt this method, I'll carry out my thorough research and choose one or two altcoins to invest in.

Actually this is a good plan except buying any meme coin because all of them is worthless. You do the right diversification of your assets but the only problem was your capital is too small to be diversified on each assets that you choose.

You should at least focus on 1 to 2 project until you grow your assets and just diversify it when your capital is already increasing. Your strategy is for high margin because it’s a way to lessen the chance of investing on a sinking asset.

Good coins generates massive profits in the system. Coins is everything we seeks in the market. We have different sets of investors in the system, those that are willingly to take the risks with open heart and those that are playing safe inother not to fall into deep circles of regrets. Memecoins are mainly for those investors that can take good risks and they're able to accept whatever fate that come out on their path. We realized our mistakes and correct them ontime because that's one of the strict measures to earn good profits from the system.