Bull Market Late Bloomers - Worth The Risk?

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9 Jan 2025

How Are Your Altcoin Bags Performing?
Altcoins continue to get the short end of the stick. Apart from a select few, altcoins remain suppressed. HIVE has been performing relatively well, as has PEAQ. However, many altcoins are battling to regain meaningful levels regarding their price action. This is difficult to endure, especially when it seems to drag on indefinitely. This is where conviction becomes crucial. Nobody requires conviction when their bags are mooning, or at least, steadily gaining ground.
Any altcoin investor should only ever enter a position if they have the conviction to back it up. Trust me, the market will always test your resolve, even in a bull market. There’s no plain sailing to glory. The market is programmed to resist you and your success. It is designed to shake you out and rattle your cage. For many investors, this is precisely what occurs. It’s a challenge to hold on to your conviction and stick to your guns. However, it’s crucial.
This is precisely why doing research is so important. Without research, there can be no conviction. It is research that forms the basis of your conviction. You have to give it to the XRP Army, many of these chaps have spent copious amounts of hours doing research and are unwavering regarding their conviction and expectation. It may work out for them. However, I was an XRP investor below a cent in 2015/16. I have moved on to other ideas. Staying ahead of the curve and walking to the beat of my own drum is how I roll.
Should I Stay Or Should I Go Now?
This is the million-dollar question. Does one continue to hold an altcoin that is not performing? An altcoin might stagnate, which can be concerning for someone heavily exposed. I remember holding MATIC in 2020 after purchasing my allocation at approximately $0.002. I intended to trade MATIC. However, the price of MATIC didn’t move. Because I had acquired this allocation as a trading position, I sold it in favor of an altcoin with more volatility.
In hindsight, this was one of my biggest regrets. MATIC turned out to be one of the largest gainers of 2021. Fortunately, I had several other micro-cap picks that performed equally as well as MATIC. However, it was still a painful experience. The moral of the story is if you believe in something, hold on to it especially if it is a well-researched project. If the narrative and fundamentals are good, it’s often just a matter of time. On the other hand, some altcoins experience extended periods of consolidation.
Yes, even in a bull market, certain projects continue to consolidate. The price goes up. However, when you zoom out, long-term charts reveal an extended period of consolidation. Litecoin and XRP experienced this in the previous cycle, so an explosive bull market is expected for these two projects. Litecoin has significant adoption, daily trading, and transactional volume. This poses another question. Are you prepared to wait years for your altcoin of choice to perform?
Someone looking to build an alternative “pension portfolio” might appreciate the extended window, allowing cheap accumulation. However, your average retail investor is unlikely to stick it out. If I were in such a predicament I would resort to my 50/50 rule. I would sell 50% and move into something else while remaining exposed to the other 50%. This is what I should have done with MATIC. I recently applied this strategy to a staking allocation that has been stagnant for months. Once unlocked, I will deploy the capital to an alternative DeFi protocol.

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Final Thoughts
Haste makes waste! It’s always wise to carefully plan your moves in the market. If undecided, the 50/50 rule should provide an acceptable course of action to remain in the game while gaining additional exposure. These are my thoughts and approaches. Please conduct your own research and find a solution that matches your risk profile. All the best! See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.