In the middle of the main rise of Bitcoin, you can switch the BTC position to altcoins. Because the main rise of BTC is not achieved overnight, but a long process. And altcoins will not wait until BTC rises to the top before they start to rise. Therefore, we have to switch funds to altcoins in the middle.
An important question then is, when will the BTC funds switch?
According to experience, we just need to wait for the first big positive line of BTC (note, this may not be just one, but a series), and strongly break through the previous important position.
Then there are the following questions:
Allocation of position funds: I personally recommend that people who are not focused on trading should hold long-term positions until the bull market ends or the sector speculation ends. Those who have the spare money can consider using 20% to 30% of their positions to participate in short-term and medium-term hot spot speculation.
What coins to buy?
It is recommended to have a limited number of coins and sectors. Going all-in on one coin is not the best choice. Although we often see some people who go all-in on one coin and win big in the end, there are actually a large number of such people who end up with a bad ending. In fact, it is just survivor bias.
Because a project may not perform well if the project owner has no vision, runs away, is attacked by hackers, or the sector is not hyped. From a risk perspective, a certain degree of diversification is needed. But from another perspective, our time and energy are limited. Therefore, we need to select a limited number and sectors in the end.
Pay attention to the position configuration, as well as the sectors and coins that you are optimistic about. I will talk about it later.
The next stage: sector rotation
The strategy in the second stage is to focus on a certain number of sectors. In a bull market, the sectors will be hyped up in order. Therefore, some sectors in your positions may be hyped up first, and then you can realize the profits. Then you can switch your positions to sectors that are not hyped up.
It must be emphasized again that in a bull market, long-term holding is the main approach. Do not actively chase the rotation of sectors. Only after the hype of the purchased sector ends, move the position to the unhyped sector.
Trump will speak at the Bitcoin 2024 conference tonight! Musk may not be there, but he may also be there.
In order to win votes, Trump will definitely say some good things, which may boost the cryptocurrency market again.
