Newcomers to the crypto market often don’t realize how difficult it can be to survive the next bear market if you fail to multiply your portfolio by 5x in the bull market. I’ve seen it firsthand how large market cap coins drop by 90-95%.
For instance, SOL went from $250 to $10. As prices start falling, bad news keeps coming, and gradually, you lose faith in the coin. I’ve seen a YouTuber who only bought LUNA and staked it. His $2-3 million grew to $100 million, and he planned to buy a yacht and a private jet. He even started looking at options with his wife.
But when LUNA started crashing and fell to $46, he tried to unstake his LUNA, but unfortunately, it takes 20 days to unstake. By the time it was unstaked, LUNA had dropped to $0.0001. As traders, many of us were happy shorting and longing LUNA that day, but then LUNA was delisted from Binance.
When SOL was at $28, a huge amount of SOL was unstaked, 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 dropped from $3 to $0.20, ADA went from $3 to $0.25
A bear market will shock your imagination. Slowly but surely, you’ll watch big coins disappear by 90%, along with your portfolio. So, you have to make your gains in the bull market.
Most of us have small portfolios. Small, meaning under $5k. Between $5k and $30k is considered medium range, and $30k to $100k is relatively large. Should the strategy for all three categories be the same? Absolutely not. You have to take risks and diversify according to your portfolio size.
If you have a $2k portfolio, will you buy 10 coins? How will you DCA (Dollar-Cost Average)? Instead, buy 2-3 coins; your chances of gaining are higher this way.
For those with larger portfolios, a 3x gain is enough, even 2x is satisfying. Their planning will be different—not project-wise, but market cap-wise. They will allocate 30% to large-cap, 30% to mid-cap, 10% to low-cap, and 10% to meme coins.
The problem lies with small traders. So, avoid spreading.
