Adding more altcoins to diversify your portfolio won’t necessarily lead to profits in the volatile crypto market. Most altcoins are heavily correlated to Bitcoin and Ethereum, which have been the top performers for the past two years. The ability to pick winners is difficult, as trends and popularity in the sector can shift quickly. In order to achieve outstanding returns, investors need to identify narratives and events before they become popular, rather than over-diversifying their portfolio. Following these steps can lead to better crypto investing prowess and ultimately higher returns.
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This is Why You’ll Never Make Money in Crypto
Crypto has been a buzzword in recent years, with many people investing in it with the hopes of getting rich quick. However, it’s not that simple. In fact, there are certain mistakes that most people make that prevent them from ever making money in the crypto space.
Stop Adding More Altcoins Only for the Sake of Diversifying
One of the most common mistakes that people make when investing in crypto is adding more and more altcoins only for the sake of diversification. This might seem like a good idea, but the reality is that all altcoins are heavily correlated to Bitcoin and Ethereum.
Focus on the Best Performing Coins in the Top 100 for the Past Two Years
Instead of over-diversifying, it’s important to focus on the best performing coins in the top 100 for the past two years. Bitcoin and Ethereum are good examples of such coins. These coins have consistently outperformed other coins and are considered to be some of the most stable options in the crypto market.
Identify the Narratives or Events Before They Become Popular
If you want to make real outstanding returns in crypto, you need to identify narratives or events before they become popular. This means that you need to stay informed about the latest happenings in the crypto space and make informed decisions based on them.
Avoid the Worst Performing Coins for the Past Two Years
It’s also important to avoid the worst performing coins for the past two years. These coins have gone down in price even during the bull market, which is a clear sign that they are not performing well.
Conclusion
In summary, if you want to make money in crypto, you need to stop over-diversifying, focus on the best performing coins, identify narratives or events before they become popular, and avoid the worst performing coins. By following these tips, you can increase your chances of success in the crypto market.
