This forum has provided me with a wealth of information across various subjects. I'd like to share my perspective on cryptocurrency, acknowledging that my insights might be fallible. However, I'll do my best to articulate my strategy clearly.
To begin, it's important to note that altcoins are not suited for long-term investments. Holding onto them for over a year is generally not advisable. Altcoins are primarily designed for speculative purposes, with the aim of generating quick profits. They don't represent new paradigms or groundbreaking innovations; such narratives are often misleading.
The fundamental question arises: what purpose do most altcoins truly serve? To be frank, they often lack substantial utility.
Altcoins are primarily instruments for speculation. It's prudent not to develop strong attachments to any particular altcoin. Their primary function lies in the potential for rapid profit accumulation.
Regarding trading strategies, need to follow one, find your's, could be also a common and straightforward approach involves employing a widely-used indicator, such as the 14-day RSI (Relative Strength Index). Buying during oversold conditions and selling during overbought conditions can be an effective method.
I strongly advise against blindly following the online community or Twitter opinions. Much of the discourse in these spaces is often unsubstantiated. For instance, consider the XRP Army, which consistently touts announcements and partnerships. Despite the hype, the recent partial resolution of the SEC trial led to a less than 50% price increase. Some Twitter enthusiasts predicted XRP reaching $100, yet it remains stagnant at $0.63.
It's worth acknowledging that XRP could potentially surge to $5 or more in the future. Nevertheless, it's crucial to recognize the risks and uncertainties associated with such investments.
Many altcoins currently trade at 90% to 99% below their all-time highs (ATH). The question arises: is it rational to invest in assets that have experienced such substantial losses?
Consider Solana, often praised for its technological advancements. However, a comparative analysis with Ethereum (ETH) might reveal surprising discrepancies.
Are you really looking to invest in such stuff? This is the new era of tech?
Investing in such endeavors warrants careful consideration. It's also vital to discuss the concept of "halving." Reflecting on 2016 and 2020, numerous altcoins faced challenges, with several undergoing significant changes. Dash, once highly discussed in 2016, has largely faded from prominence.
The forthcoming halving presents uncertainties regarding the altcoins that will flourish and those that will falter. Placing your wallet in the current top 10 market cap altcoins may seem unwise, given their substantial ATH losses and history.
Examine the two snapshots provided. If you had invested in the majority of altcoins depicted, your current position would likely entail substantial losses.
Additionally, it's essential to contemplate a crucial factor: a significant number of individuals who entered the market at its peak are patiently waiting for their coins to regain a semblance of their former value before deciding to sell.
Consider the scenario where you purchased a coin that has since depreciated by 80% from its original value. Any price surge would likely trigger a surge in selling activity as numerous investors seek to recoup their initial investments.
Thus, a prudent approach involves employing altcoins for speculative purposes. Engage with newly-created ones, purchase during RSI oversold conditions (like ARB), and promptly sell when RSI indicates overbought conditions.
Kindly refrain from fixating on the notion of achieving 1000% gains; those novelty "pepe" coins are real trash. A respectable outcome lies in the range of 40%, and even a 20% gain should be deemed satisfactory.
The mentioned instances serve merely as illustrations; it's important not to blindly emulate them. Crafting a reliable strategy necessitates a broader evaluation beyond just relying on RSI indicator, I'm mentioning it just for undestanding a strategy. Other factors should also be thoroughly examined.
Now, shifting the focus to two standout projects: BTC and ETH. While BTC may face criticisms of centralization and cost, it remains resilient and consistently generates results.
Contrary to sensationalized narratives predicting astronomical valuations, a more grounded perspective suggests BTC's halving growth may resemble that of LTC, indicating a range of $25,000 to $40,000. But hey no one really knows, the important here is to have a strategy not to think on the gain.
Moreover, it is imperative to exercise caution when relying on online communities also to those focused on BTC. These BTC communities frequently comprise individuals with $2,000 investments, extolling their newfound financial independence.
Those with a significant grasp of financial matters do not unreservedly embrace prevailing narratives; instead, they arrive at judicious conclusions through meticulous examination.
Adopting a mindset of restrained anticipation is also a prudent approach in any trading endeavor. Consider, for instance, the unexpected achievement of new all-time highs for the SP500 and Nasdaq this year. Such an outcome appeared improbable, given the prevailing macroeconomic conditions.
A viable strategy revolves around "following the money." As capital continues to flow into the crypto realm for various reasons, the discussion naturally centers around BTC, ETH, and stablecoins.
Also take into account the timing of your entry. While the timing is inherently uncertain, the current period appears to be marked by an even greater level of unpredictability. Stock markets have exhibited an exceptional performance, and cryptocurrency has recently diverged from mirroring stock trends. Forecasts suggest a potential downturn in the stock market.
Pose yourself the question: if the SP500 retraces, how might BTC respond? Will it follow suit or display resistance?
Our ongoing experience is characterized by evolving scenarios. Investing lacks a steadfast set of rules, yet we can endeavor to develop a mindset conducive to making informed decisions within this dynamic landscape.
For long-term investors, a prudent approach involves diversifying across BTC, ETH, and perhaps engaging in selective altcoin trading for profit, devoid of emotional attachments.
I hope these insights prove beneficial to the forum.
. So many self-sabotage and destructive personalities. I started referring to them as suicide bombers! I actually started to write a book called "Defusing the Suicide Bomber in Her", which is just a compendium of adages I put together from my encounters with them. I'm not even close to finishing as I'm on page 34, but I suck at articulating my thoughts.
