Buy Altcoins Because You Like the Project – It Does Not Reduce Risk ThoughJuly 13, 2019
The small size of Facebook has pushed the warnings related to digital currencies to significant heights.
Powell stated, “It needs a careful look, so I strongly believe we all need to be taking our time with this. The process of addressing these concerns should be a patient and careful one, not a sprint.”
The US accounts for nearly 26% when it comes to Bitcoin activity. The regulators of the country are not able to arrive at a consensus as to how they will be dealing with crypto peers.
Similarly, an ECB in the past week stated that Libra could not operate in “void” outside the typical structure of the Central Banks.
24-hour losses in several Altcoins touched 69% with some coin types. However, many believe that when Altcoins eventually bounce, they will bounce extremely hard and the Alt season might happen quicker than anyone ever predicted. This is true with all Altcoins, including the TCAT tokens.
It has been usually seen that the bear and bull cycles drastically change the ranking of Altcoins. Choosing the right coins is essential, though.
We learn more about a market when it goes down than when it goes up.
Josh Rager stated, “Altcoins that perform well during turbulent market days, when most other coins are red, are coins that I look at potentially investing.”
Unlike hedge risk in the stock market, the whole of the cryptocurrency market is correlated. While Bitcoin and Ethereum serve different purposes, both the coins move in the same way.
Portfolio diversification is understood very differently about cryptocurrency. The cryptocurrency portfolio is a lot different from the traditional investment world where diversification is done to decrease unsystematic risk to improve the collection.
Buying Altcoins does not reduce your risk. You buy Altcoins because you like the project. Those who are investing in Altcoins look for robust utility and use case to ensure that the demand is maintained even when the traders are selling. While not, Altcoins will rise. A select number of high-quality Altcoins will increase exponentially.
The Altseason has been hailed to be the most profitable for active cryptocurrency traders. During the Altseason, even the small-cap assets will improve in value versus the Bitcoin. There is money to be made during the Altseason.
Some significant deaths of Altcoins are predicted during the targeted, diverse, and high-quality alt-season that is forthcoming.