Now's The Time To Begin The Altcoin Hunt!
A Lucrative Moment
Accumulation is a steady discipline of continuously accumulating quality coins and tokens that you believe will eventually go on to perform exceptionally well, or even return to previous highs if it is an altcoin that has been unfairly, or seriously affected by the bear market. There are always those cases… for some reason, the market completely loses confidence or just decides to travel through the bear market in cash or stablecoins.
Ultimately, bear markets provide the most lucrative opportunities. If altcoin bagholders are suffering, it simultaneously means that there are tremendous bargains on offer. Regardless of the recent surge in the altcoin market, altcoins have barely managed to regain any of their former glory. It’s still a case of 80% to 90% down for most altcoins. This simultaneously provides an unparalleled opportunity, and one I enjoy taking.
This is my favorite “period” of the Crypto cycle. As the market begins to turn and re-adjust its trajectory, I begin to seek out altcoin gems. It was during this period last cycle that I identified and picked up my best altcoin performers of the cycle. When it comes to altcoin gems, or more particularly, micro-caps, buying a bottom is relatively inconsequential. Why? Well, we are not talking about coins that are going to 10X or 20X.
This particular niche can often produce anything from 300X to 500X. I managed to purchase UBT at approximately $0.01 in 2019/2020 and it went on to peak at $4.22. Solana was even better. I picked up SOL on Hotbit just after the ICO at approximately $0.30. When it comes to accumulating micro-caps, it’s not about the bottom at all. Buying a bottom is more applicable to your mainline altcoins such as Cardano, Polygon, and so on.
Much More Of A Gamble
Essentially, micro-cap altcoin investing is as close to gambling as you are going to get. Many of these projects have market cap valuations that barely even register. For many, it can be as little as a few million dollars. If such a project goes on to realize a market cap of $400 million, which is still relatively low, you have secured an enormous profit. More altcoin investors need to be aware of such returns.
The lack of awareness is primarily due to little to no research. If your altcoin portfolio exists primarily of Top 50 coins or even Top 100 coins, it’s rather unlikely that you are going to realize meaningful altcoin returns. These returns are found in the darkness… nobody is really talking about them. They are in many instances completely unknown. Discovering these gems requires a fair amount of research, coupled with a bit of good fortune.
I am likely to publish a few articles addressing some of my findings. However, it is important to note that these a highly speculative, high-risk investment vehicles. Many micro-caps never even see the light of day. That’s why allocation should always be rather reserved, even minimal. A hundred-dollar bet can turn into $20K, or even $30K. Similarly, it can become zero! Deployment of investment capital should always line up with the risk/reward ratio.
Final Thoughts
Many investors are more intrigued by the sure-thing bets like Ethereum and other top-tier altcoins. Yes, there should be a significant percentage of your portfolio allocated to already established projects that simultaneously have a solid user base and use case. However, a minority investment in a “sweet spot” can multiply your portfolio value many times over. A portfolio solely geared towards top-tier projects will experience gains.
However, investors shouldn’t expect moonshots from such a portfolio. Enormous gains come packaged together with significant risk. Remember that! If you are going to play this game, make sure you are prepared for both the euphoria and the pain. Happy altcoin hunting! Catch you in the next one!
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.
