It has become very common these days for people to flex and hype the coins in their portfolio as 50x – 100x gems for this Bull run. In fact, sometimes if you compare the coins in your portfolio with that of others, you will be tempted to ditch your coins and buy their coins.
But who decides which coins will do 50x – 100x ???
The answer is simple, it is the giant action of market players (buyers and sellers) at a given period. The interplay of demand and supply between them defines the market equilibrium.
Although a lot of traders have diversified a decent amount of their capital in Bitcoin and several altcoin narratives that have the promise of massive returns this Crypto Bull run, the truth is that, not all the coins/tokens in your portfolio will achieve the profit potential of 50x – 100x.
Here is why???
There are several crypto narratives such as LAYER-1, RWAs, AI, GAMING, & MEMECOINS that have great potential this cycle. Out of these narratives, AI projects and Meme coins could be strong contenders for a winning portfolio.
In the summer of 2020, huge shares of market liquidity went into DEFI projects, then liquidity moved into GAMING and LAYER-1 projects in summer of 2021 etc. The important factor here is to invest in the right narratives per cycle.
Due to how open the creation process of a cryptocurrency is, it is relatively easy to make one. There are roughly more than 20,000 cryptocurrencies existing, even though most of them are inactive or discontinued.
This means that liquidity in the market has to be distributed across all the various crypto projects. Projects within certain selected narratives will have a huge share of the liquidity due to the high interest of market players in those projects and the opposite is quite true.
So, you may ask: should I spread my capital across different projects?
The answer is “YES” but make sure you diversify your capital in the right narratives such as LAYER-1, RWAs, AI, GAMING, & MEMECOINS.
In conclusion,
Once you've done your due diligence in selecting the coins to invest in this Cycle, don’t fall for the temptation of people who flex and hype the coins in their portfolio. This temptation could make you miss out on gains if you keep jumping from one coin to another. Nobody can tell the coin that will bring the massive returns that will offset the losses of the other coins in your portfolio. So, believe in yourself and in your portfolio of coins!
NOTE: Don't forget to do your own research #Dyor2024
#ETHBTCNewLow #CryptoPreUSElection #EthereumPectraUpgrade #Write2Earn! @CZ $BTC $FET $WIF
