If your portfolio resembles this lineup, you might be missing the mark ❌❌❌❌
Investment 1 - $WIF
Investment 2 - $PEPE
Investment 3 - $MEME
Investment 4 - $DOGE
Investment 5 - $SHIB
Investment 6 - $BONK
This allocation is common among many, particularly newcomers, who often invest all their capital into MEME coins.
While MEME coins have their merits 💯, they are also notorious for their extreme volatility and susceptibility to manipulation.
Indeed, MEME coins can swiftly propel you from $100 to $1000 in the crypto sphere, and in just a matter of hours, they can similarly plunge from $100 to $3.8.
As a seasoned crypto trader and investor, it's crucial to embrace diversification.
Consider this recent scenario: on a Saturday, a cohort of influencers endorsed a MEME coin to their followers, catapulting its market cap from $186K to over $1.5M within 12 hours. However, shortly after reaching the pinnacle, the same coin plummeted back to a mere $389K market cap.
This rollercoaster ride unfolded within a span of 24 hours. Once the dump occurred, the influencers, having pocketed substantial profits, ceased promoting the coin, leaving their followers holding the bag.
The takeaway? Avoid constructing a portfolio solely comprised of MEME coins, or allocating 80% - 90% of your holdings to them.
Instead, consider the following strategy:
- Allocate 20% - 30% of your capital to MEME coins.
- Allocate 30% - 65% of your capital to low market cap gems.
- Allocate the remaining percentage to established projects like Solana, Ethereum, and others.
We trust you'll find this advice helpful, informative, and perhaps even entertaining.