Portfolio Design Needs Focus
A lot of people in the Crypto space are currently scooping up DeFi projects at a rate, to both hodl and swing trade, myself included. However, it is not only what I am currently buying and I will be covering my ideas and approaches in this article, as well as my motivations behind them. If I allow myself to be completely consumed by the DeFi craze, I put myself in a dangerous position should something go wrong for the DeFi space. All outcomes need to be considered and when you only consider the bullish case, you deceive yourself and ultimately set yourself up for disaster.
This is why I have not only been buying DeFi projects of late but spreading myself across a broad spectrum of alts, which I believe will do well in the long run as well as currently. Just to be clear, I do avoid DeFi projects such as Sushi and Yam. I look for real projects with a real future, speculation alone is like playing Russian roulette. I may randomly take a single risk trade, as I often like to take a little gamble every now and then.
The Recent Dump Was A Good Test
We have seen the market dump quite hard over the past 24 hours, with ETH shedding approximately 12%! Most alts are down in similar percentages and higher and yet my altcoin trading portfolio only lost at most around 1% to 2%, which really surprised me. Even though this was the planned outcome, I was not expecting it to fair so well but I have noticed that it has remained relatively steady in recent dumps and downturns.
Some of the reasons are that I have chosen not only to focus on DeFi and the ones that I am exposing myself to a more of the "unknown" projects that are still steadily rising in market cap value. Projects like Akropolis, which is up over 20% as I am writing this piece. DIA is another one that has just surged while many are falling. I have also been looking at cross chain projects a lot and have been picking them up over the last few months. Most of these have remained relatively stable. Projects such as Kusama and DOT. EDG is the only one of my holdings that has taken a significant knock but it's a good opportunity to average in as the rest of my portfolio steadies the ship and anchors it in profit.
Something that is looking really great as a buy opportunity is IRIS, which is down 23% today! I will be picking up some of that! Along with DeFi and cross chain projects I have been exposing myself to micro caps that nobody is really talking about that are performing relatively well, such as SNTVT and Kardia Chain. You will notice that all the links in this article are to posts that I have previously written about these projects and am currently holding. I have named all of these as previous picks over the last 2 to 3 months.
Though TRX is not in my altcoin trading portfolio I do have TRX in my passive income portfolio and strategies. I have been saying for a long time that TRX will surprise people and that it should not be written off just because of personal feelings regarding Sun.
Tron has managed to completely escape this dump unscathed, though I am sure it will have a correction soon as TRX is up almost 60% in 7 days. This type of move for a top tier coin will ultimately demand a correction at some point.
All the best for your portfolio designs and navigating this market. It requires constant time and dedication but is very rewarding!
I'm really waiting for trons correction