Dear Everyone,
While i was studying and researching on some new ICO coins, i came across this article with great interest.
Click here to read more the details:
https://www.coindesk.com/weathering-altcoin-shitstorm-investing-next-one/
This article is quite informative and i would like to apply some of the principles that have been used by most fund managers.
For my fast reading , i would like to summarise a few points here.
- Crypto moves in cycles.--short term and long term
- two ways to make profit a) Hold more that rise and less that fall b) cycle adjustment increase risk exposure when market rise and reduce when when market falls
- Short term cycle is driven by new capital flow, investor composition and sentiment and long term is by fundamental
- Short term....look at signup in coinbase....move to buy BTC then move to bittrex, binance ...then end of short term for BTC buts tart of short term of alt coins
- Market Dominance in BTC dropping from 65% to below 35% also reflects movement of market sentiment
- When FOMO starts..time to fear and worry
- When fundamentally weakest asset rise and media on dead of BTC then near to end of short term for alt coin dominated cycle.
- Overweight alt coin at the beginning and middle of altcoin cycle.---same as for btc
- Understand and identify where are we in the cycle..
- What causes cycle---using Gartner hype ----triggered by technology change followed by peak of inflated expectation then followed by trough of disillusionment then followed by slope of enlightment and finally lateau of productivity
- How to prepare for the next alt cycle: Question is not only why the protocol is interesting but why and when the market find protocol is interesting. Timing is important!!
- When in a BTC cycle, the question to ask is: what narrative will be the crux of the next Gartner hype cycle? Where will the capital flow when the BTC cycle peaks, and what will be the catalyst?
- Fundamentally analyze each protocol and determine which will benefit most from a shift in narrative. Do your diligence. Make sure the code and underlying infrastructure is sound and protect your capital.
- When you inevitably find yourself thinking that BTC or [INSERT PROTOCOL HERE] can't be stopped, remember that we've been evolutionarily programmed to think pro-cyclically. It will be stopped. And the cycle will turn.
Thank you.
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That chart is crazy, what is it?
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That is the chart of the crash of some alt coins...soon...It is happening now
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