To form a portfolio, there are a number of principles and rules that should be followed.
Let's understand the phases of the market
Distribution - the majority buy crypto on the hype when the entire market has grown.
Accumulation - the majority sells crypto in fear at the lows, and a large player and smart investor, on the contrary, accumulates a position for the future.
Dividing crypto into categories
• Old coins—gave growth in 2020 and 2021;
• New coins - released in 2022 and more to come in the near future.
In 99% of cases, new coins will give growth many times stronger, since they have not yet been pumped up. Having the majority of the coins from the team and funds, this will be easier to do than with the old coins.
No one, including the market maker, knows which coin will fire and where the price will go. Therefore, we get rid of the hamster habits of trying to buy on the lows and sell on the highs, as well as from turning one single coin into a “beliver”.
How to select coins
The coin has fallen by at least 80% from its highs;
The team is working on the project or creating visibility;
There is little interest in these coins;
The number of active new addresses and the number of transactions in the network;
The project category receives funding that does not serve as a reason for advertising or news. That is, quiet investments.
Building a portfolio for the long term is important and this requires money. To get them before the next bull, there is activity in the crypt.