1. Sector rotation and allocation strategy in the bull market
In a bull market, various currencies will experience fluctuations, and sector rotation is the norm. It is impossible to take all market opportunities. You may see some currencies that attract your attention, but if you chase high, you will face the risk of the first wave of market correction. Many people try to jump out of the car, but the result is often that the more they jump, the more they lose money. The faster they go, the worse they fall. After experiencing 3 bull markets, I think the best strategy is to focus on picking the strongest sectors instead of jumping frequently.
The three strongest sectors in the bull market:
US ETF Priority Sector (Payment Sector):
Mainly including DOGE, XRP, XLM, ALGO, ADA, SOL and other currencies. These currencies have great potential and may be driven by positive news at any time. It is not surprising that their market value grows rapidly. At present, they are at the forefront of the market. You can choose 1 to 3 of them for layout.
Meme coins (such as PEPE, WIF, PNUT, etc.):
Meme coins are frequent visitors in this bull market, and are usually the most courageous varieties to be raised by exchanges. Although their growth is more dramatic, their performance in the bull market cannot be ignored. Although their growth is extreme, you don't have to hold too many, just pick one.
AI sector (such as WLD, NEAR, ARKM, FET, etc.):
Regardless of its current performance, AI is an important theme for the future. Although the current growth of the AI sector is still controversial, in the long run, AI is expected to become an important growth area. It is recommended to pick 1 or 2 projects to hold, which may become rising stars in the future, and may even surpass other sectors and become leading coins.
2. Suggestions for the configuration of altcoins
Depending on the size of your bankroll, here are my personal altcoin holding recommendations:
Below 100,000: Choose 2-3 altcoins.
200,000 to 500,000: Hold 4-8 altcoins.
500,000 to 2 million: Hold 5-10 altcoins.
2 million to 5 million: Hold 10-15 altcoins.
5 million to 10 million: Hold 15 altcoins.
More than 10 million: Most of the funds are allocated to BTC, and the rest can be used to invest in other projects.
Conclusion
Through these years of experience, I believe that when investing in altcoins, you need to have reasonable position management to avoid blindly pursuing short-term high returns. You don't need to chase 10x or 100x returns for every project. Gradual returns are the most reliable strategy. For example, the US ETF sector itself can bring 4x growth. The principal of 100,000 has become 400,000 through the growth of this sector. Why not?
I will share these contents today. The focus is on position management and choosing the right sectors, avoiding excessive greed and frequent jumping. Steady layout is the most sensible strategy in the bull market.
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5 years of experience in the cryptocurrency industry. You can consult me on any questions. If you want to make progress together, please read my introduction.
