Newcomers to the crypto market often don't realize how difficult it will be to survive the next bear market if you don't multiply your portfolio 5x in a bull market. I've seen large market cap coins drop 90-95% with my own eyes.
For example, SOL fell from $250 to $10. As the price starts to fall, bad news keeps coming and slowly you lose faith in the coin. I saw a YouTuber who just bought LUNA and bet on it. His $2-3 million grew to $100 million and he was planning to buy a yacht and a private jet. He even started looking into options with his wife.
But when LUNA started to crash and dropped to $46, he tried to cancel his LUNA stake, but unfortunately it took 20 days to cancel the stake. By the time the stake was canceled, LUNA had dropped to $0.0001. As traders, many of us were happy to short and wanted LUNA that day, but then LUNA was delisted from Binance.
When SOL was at $28, a large amount of SOL was unstaken and people were saying "SOL is the next LUNA". I eventually stopped following it. AVAX went from $100 to $10 and I thought it was done. FTM went from $3 to $0.20, ADA went from $3 to $0.25
Bear markets will blow you away. Slowly but surely, you will see the big money lose 90%, along with your portfolio. So you have to make profits in bull markets.
Most of us have small portfolios. Small, meaning under $5k. $5k to $30k is considered the middle range, and $30k to $100k is relatively large. Is the strategy the same for all three portfolios? Absolutely not. You have to take risks and diversify according to the size of your portfolio.
If you have a $2k portfolio, would you buy 10 coins? How would you DCA (Dollar Cost Averaging)? Instead, buy 2-3 coins; your chances of making a profit are higher this way.
For those with larger portfolios, 3x is enough, even 2x is satisfying. Their plans will vary—not by project, but by market cap. They will allocate 30% to large caps, 30% to mid caps, 10% to small caps, and 10% to meme coins.
