Building A $1,000
#Altcoin Portfolio
This cycle is the last cycle where you can leverage yourself through a maximum of gains on altcoins and hit $100,000 with a $1,000 portfolio.
Last cycle, I went from $30,000 to $10 million.
If I can do it, you can do it too. Let´s discuss.
The markets are heating up and the emotions are getting into the decision-making, which is actually benefiting your returns in a negative way.
I'll be making multiple posts on assisting you on how to build and manage a small portfolio, as the coming year can change your life.
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The thing is that you're constantly hearing a lot of great stories about people making millions from nothing in memecoins. For sure, this can be done with memecoins, but you should realize that you're far on the edge of the risk curve and that, the further you go, the more people will lose rather than win.
On the other hand, the markets have shown that, with relatively new coins, early in the bull cycle tremendous returns were achieved.
SEI and TIA went up by more than 1,000% in the beginning of this year, not discussing FET or INJ.
The bull market lasts in multiple stages, and we all remember the massive peaks up and down. The peaks up are there to generate return, but actually, most return is made by having the guts to be stepping into an asset again when it's down 50% in a single week or month.
In 2024: alcoins went up 500-1000% and they corrected by more than 50 and even 80%.
The four key principles that you should realize when you're building a small portfolio in this first article.
1⃣ - Less is more.
The first key principle is having less assets in your portfolio. There's a marginal effort required to manage another asset in your portfolio, which leads to a marginal (positive/negative) return within that same portfolio.
One of the key lessons from the previous cycles for me was to reduce the amount of coins in your portfolio as less is more. The optimal size is between 6-8 assets. Manage them well and your return will be significantly high enough.
Why?
Everything is correlated anyways, so going for a bigger portfolio doesn't make much sense.
2⃣ - Smaller coins do not yield a higher return
When I'm trading and investing in the markets, I'd build my portfolio up from risk assessments, rather than from the potential return I could make.
People are so heavily focused on 'this coin went 200x previous cycle, this did a 80x in 3 months'. Yes, but you should realize that you won't be selling that specific high. You'll be too early or too late.
If you build your portfolio from risk rather than the reward, then you'd be taking decisions that 'higher valued' coins within a narrative make more sense if you trade based from the risk perspective. Larger coins have more liquidity, a higher chance of surviving when the narrative wakes up and drop less when the markets shift.
3⃣ - Be patient.
The markets have barely moved upwards, some coins have been yielding a 2x, but that's literally the start.
If you want to have the big returns, you should be patient to avoid excessive trading to be done through those runs.
If you had the ability to take the positions in the accumulation phase, then the 2x isn't the trade that you're looking for, you'd be planning to take a higher return with those altcoins and you know that it's possible, so find something to do in between the period of buying and selling to avoid that you're going to be making silly mistakes.
4⃣ - Rebalance your portfolio.
I think, by far, that the essential part about making sure that you're going to be making it through this cycle is to be having the ability to rebalance your portfolio.
Our courses will educate you the most about this concept, but through this concept you'll:
- erase external factors
- have a strict plan
- work from risk rather than reward
- have the flexibility to ride the waves of the markets
Rebalancing your portfolio means that once you've been making massive returns in the markets, that you're going to shift back towards Bitcoin and Ethereum and possibly even USDT.
This is also where I've been referring to the case that I'll be using the March high to start taking substantial profits from my altcoins back into Bitcoin and Ethereum.
Why? The first run upwards might yield you the first 8-12X, however, swapping towards Bitcoin and Ethereum might provide you an additional 50% (then you'll be at 12-18X), while altcoins are suffering.
Reallocating those funds once the markets have gone down by 50-80% on those altcoins and you'd be setting yourself up for another massive run.
That's how the game is played and that's the best way to build a big portfolio out of a small portfolio.
Compound your returns.
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