Some of us know that in crypto it's a wise strategy to hodl most of your portfolio in king of crypto coins: BTC and in number 2 of crypto: ETH. How much? It is ok to follow the market share. So - if BTC has 61% market share from total Market Cap of crypto - you should follow the same proportions with your portfolio. The same with ETH. The rest could be other coins. If you did it – CONGRATULATIONS! You could watch us with pride.
Of course, nowadays could be a little too late. You could wait for a pullback and try to follow this strategy.
If you tried to catch only the Altcoins game of up and downs, like many others (including me), you could observe how easy a bullish situation could turn into a bearish one in minutes: BTC felt two times in these days, from almost 34 k to 28 k (almost 20%) and from 41 k to 38 k. We are talking about the most important coin of crypto, the most capitalized one, with more than 60% market share!
Like I said, in no more than few minutes, FOMO was transformed in FUD and everybody (bot) tried to escape from the downward spiral and get away as soon as it could by selling their holdings for waiting to enter a little lower.
And it wasn't necessary to have too much BTC for selling to create this despair.
So, welcome to present crypto world – anything could be changing in minutes and everything could go UP or … worse – DOWN.
What I am trying to do in this kind of situations? I establish some selling/buying targets, see where the market is going (for example, in Binance you could use OCO orders instead of the simple ones) – if the price is going up , but with low volumes, an immediate DUMP is possible, or, the reverse, if the price is going down with low volumes, a Bullish Divergence is likely possible to show.
Try to study the concepts of BULLISH and BEARISH DIVERGENCE, make your Support and Resistance lines and look where the price is going. Trade in steps, to avoid a total exit from your favorite coin or minimize a possible dump.
Yes, nobody could pretend to see the future, but we can protect from a massive change of situation
Take care!
