The altcoin market is going through quite turbulent days with the movements of the leading crypto currency Bitcoin (BTC). BTC, which broke the all-time record recently, did not give altcoins this opportunity. So what should altcoin investors do in such a situation and what should they pay attention to in a possible bull run?
As can be understood from the name he used, Altcoin Sherpa, a strict altcoin investor, gave very important advice to investors who are new to the sector. The analyst emphasized that the DeFi rally that took place in the summer of 2020 added important things to him and that he both learned new concepts and remembered old experiences.
The #altcoin run we had in summer 2020 (#DeFi run) helped me understand a few new concepts and also reminded me of some old lessons that I forgot. These are not listed in order of importance. Read the old thread above first.
— Altcoin Sherpa (@AltcoinSherpa) December 2, 2020
So, what are the lessons that Altcoin Sherpa has learned by blending “old experiences” with “new concepts”?
You can buy even if the price goes up:
The analyst stated that, as many experts have noted, it is not necessary to wait for projects that have dropped a lot in price to buy from somewhere. The analyst, who gave the Yearn Finance (YFI) example, emphasized that there are those who buy and sell popular cryptocurrencies as well as those who expect “dead coins” in the meantime. Even when YFI really hit the spotlight, it was around $ 9,000 and rose to $ 44,000.
The price movements of new cryptocurrency projects can be quite unexpected:
Altcoin Sherpa has hinted that especially the newly launched cryptocurrencies can experience incredible increases in the price setting process. During the DeFi rally, many projects indeed had price openings at very high levels as soon as they entered the market. But reliance on this has sometimes led investors to be exposed to fraudulent methods such as rug pull. The analyst thinks it might be useful to keep an eye on new projects.
Old projects have long-standing investors, and the higher the price, the more likely it is to encounter strong resistance points.
Never forget to take profit:
In fact, this is a point that almost all analysts stand on. Altcoin Sherpa also stated that he was caught up in greed and that half of his earnings ended in October 2020. Stating that he lost most of his earnings during the summer period for this reason, the analyst wants others not to experience this bitter experience.
Make your plan and keep buying in certain percentages:
The analyst made a statement that specifically concerns altcoin investors. Stating that the price may also fall, but in his opinion we are heading towards a major altcoin rally, Altcoin Sherpa hinted that purchases could be increased.
However, the point that the expert name draws attention to here is to make purchases by adhering to a plan with certain percentages instead of investing with all assets known as “all-in”. The analyst admitted that he also took between 5% and 10% in a few days and weeks. According to the analyst, although the price of some altcoins may drop, this may not undermine their long-term movement. According to Altcoin Sherpa, the altcoin season can begin in December 2020.
Learn fundamental analysis:
Stating that he was only someone who gave importance to TA, technical analysis, Altcoin Sherpa stated that he now attaches importance to FA, fundamental analysis. Stating that certain events and developments will necessarily increase the price, the analyst went to the summer period and emphasized the connection of Oracle and DeFi. Indeed, the rise of the DeFi industry has led to the rise of Oracle projects that transfer data and validate data to decentralized finance applications. The LINK price also went up to $ 20 in this context.
Find out about cryptocurrencies that act together:
The analyst stated that some cryptocurrencies rose and fell in groups. Indeed, there are many cryptocurrencies rising and falling together like the link between XRP and XLM. The analyst stated that projects such as GNT and REP or ICX and NEO are also included in this group. Knowing which project belongs to which group or classification can help pinpoint rises in advance.
Even if the first opportunity is missed, it is important to catch the train:
The analyst stated that it is also important not to miss the opportunity. Stating that he likes to collect some crypto coins slowly, that is to invest in them, the analyst emphasized that the money invested in these projects still has a “price”. According to Altcoin Sherpa, jumping on the train after the first big boom in certain projects can also be lucrative.