Have you forgotten that is not always rosy in crypto? A crash in price will always occur to shake off weak hands.
Are we to change allocation on losing our profits or to gain profits of our investments? You know, it's better to be "making profits".
That's why is necessary to diversify your crypto investment to potential coins.
It is really good to hear that the market crash always happens to shake off weak hands
. When you are investing in altcoins then you should be really careful because if you are not following the project you never know that the project owners will be shaking their holdings as well. In the past one year, i have seen many new projects in the space and i have seen the team selling off their coins which is a shady behavior in itself and as an investor if you are not careful you never know what happens in the future.
If you are talking about the top coins in the market then there is a safety net but that cannot be said about all the projects.
You are very right!
Small cap projects are a very big risk because of many unknown factors:
- Is it a really good technology?
- Is it an experienced team?
- Will people still have incentives to buy it later?
- Is it a scarce asset?
- Is it a fair allocation to community, airdrops and ofcourse, not too much coins for developers, team and advisors.