Altcoin Accumulation – Time To Zone In

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25 Feb 2024

Varying Reasons For Accumulation
Generally speaking, an altcoin investor will look to accumulate the coins they want to hold long-term. Coins they are convinced are going to perform well in the future. However, an unbiased investor can leverage various altcoins for a particular end game. Many altcoin investors form an emotional bond with their altcoins of choice. However, this can be rather counterintuitive, regarding portfolio growth.
Let’s examine this idea a little closer. For instance, I have often mentioned that I see Polkadot performing well during the final stages of this bull market. However, I am simultaneously aware of many micro-caps and other altcoins that will outperform Polkadot in the short to medium term. Instead of investing directly into Polkadot, I can invest in micro-caps that are likely to produce hundreds and even thousands of percent in gains over the next several months.
I can then later rebalance profits into Polkadot, and so secure a much larger position, had I initially just invested in DOT. Micro-caps often experience a blow-off top after a significant surge in valuation, and so, this strategy works well in conjunction with micro-caps. This is what I am now beginning to focus on. As certain altcoins and micro-caps begin performing well, I will be looking to rebalance marginal allocations at a time into my long-term altcoins of choice.
Additional Intensification
The abovementioned approach requires a fair amount of monitoring and oversight. However, I enjoy these types of intricacies. Another approach I have begun utilizing over the past few days is to deploy earnings from small passive income mechanisms into my long-term holdings. What I am now beginning to do is to place an emphasis, as well as to focus on where my conviction is strongest, regarding altcoins.
The great thing about these passive income mechanisms is that they are consistent, which means that I can grow my holdings almost daily. Modest amounts coupled with consistency can be extremely powerful. The key is to just keep keeping on. Essentially, I am looking to build my key exposure into a majority stake. In other words, I am slowly beginning to reduce my diversification levels.
This is however being achieved via an already diversified model, as well as in conjunction with the price performance of my assets of choice. In other words, this process will either be accelerated or slowed down, depending on asset performance. At the end of the day, micro-caps are an integral part of my investment approach. That being said, there are micro-cap holdings I will not be selling.
These are typically, projects I believe have a strong future, and/or offer great staking rewards. Gaining early access makes these rewards even more lucrative. However, I am beginning to intensify my focus, as we move deeper into this bull market. Hopefully, my main pick remains under the radar a little longer. Modest growth, later met by enormous upside is excellent for accumulation.

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Final Thoughts
I follow my own playbook when it comes to Crypto and investing. However, I do respect the general rules of technicals and other fundamentals, it’s just that I enjoy doing things differently, as effectively, and even lucratively as possible. To each his own, as they say. All the best, see you in the next one, and keep stacking!

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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.