Hey everyone, I'm back! So, as some of you might know, this is my second crypto cycle. Last time around, I didn't have a lot to invest, but now I've got $3,000 spread over 20 different coins. I put in $250 for some of them, but not all.
Just yesterday, one of my investments that I put about $250 into shot up to $500. I decided to pocket a $250 profit from that and tossed it into Turbo.
I've got a couple of questions:
1. Is it a good idea to move my profits into another coin, or should I just stash it in a stablecoin or keep it in USDC?
2. What do you think about having 20 coins in my portfolio? Is that too many? Should I trim it down?
I've heard mixed things about taking profits; some people say it's not smart to rotate into another investment. Honestly, I'm feeling nervous. I really don’t want to miss out. I want to make it during this bull run like you all.
I’m eager to hear what you all think about this. Thanks!
You made mentioned about 20 different coin and you think that is a diversification?
It's just an easy means to lose all your money, 2-5 different coin bitcoin inclusively are just okay in my opinion because I don't see any reason of holding much different coin which you can't predict their future. Though if holding them is just for only short time investment then it's fine, but I wouldn't encourage any hype coin or pump and dump.
What is the list of your coins and how do you choose them? I think it depends on your strategy. I personally think that 20 coins are too much. I invest only in 8 coins: Bitcoin, Ethereum, BNB, Matic, Solana, Ripple, Litecoin and Bitcoin Cash. I think that these coins are the best for investment and I talk about long-term investment. I bought Ripple at 0.5$ but I believed that it would rise one day and it did, now it's 2.5$. My strategy is to invest in what works the best for you and I'm also open to innovations and new coins. I invested in Solana a few months ago and I'll invest in a new coin that performs like this. I also have some funds saved for risky coins. I only choose 1 risky coin and invest if I think it's a smart decision. To sum up, my stack never exceeds 10 coins.
1. Both are good choice but you don't invest in a stable coin. It's a way to retain the value of your profit.
2. That's too many and too much diversification. I wouldn't do that to be honest because that's almost going to get you nothing. You might earn with one pump from your 2-3 coins but then get a terrible loss from the other remaining coins. So, don't diversify a lot and get at least 2-5 coins of your choice, the ones that you have the strongest conviction of holding because you're going nowhere with that number of cryptos.
Try not to let FOMO get into you. It's not your friend. It's best to be in a calm condition when making decisions.
If you're confident about the coin and ready to take a risk, sure why not? Rotating your profits is not bad but you have to understand you're taking another risk. Perhaps those who say it's bad are folks who reinvest in extremely high risk coins AKA gambling -- this isn't necessarily bad as well but know your risk. pretty much why this only take up a small portion in my portfolio.
I know some here answered it already, but I'll share my opinion as well.
1. It's good and it's bad. You don't know what can happen with the coin you wanted to buy or the coin that you just sold. There's a chance that the coin you sold just pump up a few days after selling or there's a chance that the coin you want to buy just go down after you bought it. As for me, my strategy is to just stick to the coin that I'm holding until it reaches my price selling target and depending on what's happening to the market, I will make a decision based on it. If we're in a bull run, I'll reinvest it and buy either Bitcoin or Ethereum, but if we are nearing on a bear market, I would go with stable coin like Tether.
2. 20 coins is too much for me especially if you have low budget. For me, it's overwhelming, and it's stressful. For some, they can handle the stress especially the fact that they're okay if they see the coins that they're holding are down by double digit percentages. Reducing the number of coins that you're holding would be a good strategy, but if you can manage those 20 then there's no problem. I guess what you can do is to continue investing on them especially on the top coins.
Good luck OP.
1. only rotate if you're so sure the coin you're about to invest isn't already overbought, so many people rotated from winner coin to loser coin resulting missing opportunity or stagnation of profit even lose.
I personally do some rotation this bullrun, from bigger market cap real world asset coin mainly due to current RWA hype, to the smaller cap ones, I still get profit but I think eventually there will be some big retracement at some point this month or next.
2. that's kinda too much for me but people have different preference, some people like to spread as much as they can just in case to catch some exchange that can grow up, I personally only diversify to 4 but that's just my strategy.
No, don't try that shit you are thinking on doing again, you are trying to get yourself screwed, if you escape it once doesn't mean you are going to escape it again, investing in alt or shit coin are a very risky game that might get you burnt, so be mindful with the kind of risk you are taking.
Then secondly, keeping your money in a stable coin like usdt or usdc is not an investment, take note of that.
You asking this question is enough reason for you to understand that excess of everything is bad.
Why would you even be taking such a stupid risk in the first place? Even if you are hell bent on taking risk in alt and shit coin alike, it should be done with only 10% of your Total money, so that if things goes south, it wouldn't have much effect on you financially.
If you can manage your portfolio well, then a 50 is not too much. I mean, when you buy a coin, you must have a target on which range you are going to sell that. Let's say you bought Solana at 230 dollars, and you have a target price on where you will sell it. Let's say you will sell it once Solana reach 300 dollars. You should always place a sell order so you can take your profit. In this scenario, you can easily manage 20 to 30 tokens.
Do not always invest your profits on another token. Always remember to take your profit and put it on some stable coin. Not all of the tokens will give you profits. You will make profit from seven coins while you have to expect loss in three tokens. It depends on which kind of tokens you bought.
Its okay if you make a re-investment your assets because not all the time the market trend of those coins are good sometimes you really need to seek another coins that has a potential to give you a profit, I do the same thing of quick flipping of asset once I gain profit I do convert into USDT so I seek another potential profit again. I guess its too much if you seek more than 20 coins because its too hard to monitor all of those others do consider different accounts for holdings and active trading so they can easily monitor their gains. Still its good thing if you watch 20 coins and you are still can handle this thing the larger number of coins the higher chance to increase profit.
all will depend on your ability to manage all your investment assets. each asset will have different plans and targets, you may be able to get profit from one and some of your assets early when your plan is achieved. but some others may take longer time. even some may give you a loss.
I may prefer 5-10 of my assets, that's in the short term and for the long term, I will only focus on 1-3 assets. I usually accumulate my profit on Bitcoin not on stable coins. I think there is no problem you rotate profit on other coins that may have better opportunities.
First of all congratulations on taking your profits OP.
It still depends on your strategy if you want to rotate your profits. Some prefer parking their profits in stablecoins especially if they feel uncertain about the bull run. However if you're like those who want to invest in new opportunities there's no problem as long as you've done your research and are confident in its potential. It's okay to diversify as long as you have good reasons and don't pressure yourself into chasing every opportunity.
You can enjoy the profits or reinvest them, whatever you do there is nothing wrong with that. It all depends on your investment strategy and goals.
For me, holding too many coins in a portfolio will only reduce returns instead of helping us achieve maximum returns. So I don't see holding 20 coins with $3k capital as a smart idea . Instead, if I were you and with that capital, I would just focus on investing in 2 or 3 altcoins that I like the most and believe will give me the best returns .
As for reinvesting or switching to another coin as I said above , it all depends on your strategy . If you are confident that you can make a profit , there is no reason not to continue investing . Do your own research and make your own decisions , don't invest on other people's advice because no one will take responsibility for you .
rotation is only good if you've taken profit and market suddenly tanked, which I expect there will be some dump to alt market in the future, maybe somewhere around end of december, of course it's just my wild speculation
but my advice, don't be that one guy who got to greedy they burned their entire current bullish market profit just for the sake of getting more profit for rotation.
just wait for the right time and the right price and then re enter the market, you're already in profit it means you're already better than most of investor out there no need to rush.
also diversifying in 20 coin is not wrong as long as the benefit outweigh the headache that you'll get. what I mean is, you diversify your big investment to various coin not $50 investment to various coin.
Everybody needs to find his own strategy that works for him. Investing in 20 coins is a lot so I would just opt for the 10 coins you most believe in. Similar like you, when a coin doubles in value, I cashout my investment with some profit and the rest I just keep in case it would go to the moon. You could reinvest that money or just set aside and do something fun with it.
well personally that's a smart and not too smart move .
Because who knows it might turn out to be good for you! And it might also turn out to be not too good too.
But whatever be the case , I'll advise to take the advice of not putting your profits into other coin especially for short term holdings.
1. Pros - Diversified investment but always stick into those projects on which you do seem that it has potential. We arent that still on a bull run yet so there's still chance with those shoot up to the moon scenario. Stacking up some USDT/C or simply stable coins isnt that a bad idea either on which you do at least have the capacity to buyback if ever of those main coins on your portfolio do make out some sale. you could always make out some DCA or adding up the stack to maximize profitability.
Cons- If you have sell out some portion of the coin that pumped up then it goes way into new all time then that would really be leaving out that huge regret and the amount you have invested in other coin goes south,then this will bring out that kind of disappointment on which it will lead in to desperation.
2. Its not too much i should say but make it sure that you are investing into those solid projects and not really that trying out to deal up with meme coins or degens out there. Diversification will really be that always best but be prepared into those possible disappointments on which you do able to obtain at the moment that you do made out some bad decisions. We cant be perfect and thats why we should expect these instances and easily move forward and go further.
It's simple! If you are doubting, then it's not the right choice.
Firstly, what you do with your profit solely depend on your goals. If your goal is to make more profits, you can rotate the profits into another form of investment but you must note that it's not longer profit once you choose to make another investment with it.
Secondly, do you hire observers to help you monitor the twenty coins you invested in? Isn't it too much for one person to handle the movement of twenty coins and follow up with their market trends? Diversity is not about how plenty of coins you invested in but it's about potential and what the coins can offer you. If the workload is not too much for you, you may continue but I bet you can not always meet up with monitoring and you may miss some chance in some of the coins. Increase the potential and reduce the workload.
Lot of people think that holding too much altcoin would increased their chances of making profits from them because they thought there is likelihood of them soaring above expected but have also forgotten that those altcoin can as well increase their chances of losing them all entirely. Like you said having bitcoin as most priority coin and then includes few altcoin maybe 3 of them likely better, just as holding Ripple, BNB and Ethereum maybe he may decides to includes Tron and Sol on their portfolios these coin is enough to hold than going to hold series of coin that could easily create dying part for him.
It depends on your expectations for the market, whether it will continue to grow or a correction will follow. If you expect a correction, then you need to transfer your profit to a stablecoin. But in any case, if you decide to invest your profit in another coin, it is necessary that its price is not high.