No Price movements
No interest
No investmentsI suspect a big move is coming soon.Prepare accordingly.— Ben Simpson (@bensimpsonau) August 16, 2023
On the same note, CoinShares head of research James Butterfill told Cointelegraph that dollar-cost averaging — periodic small asset purchases or holdings sales — could mitigate the volatility of cryptocurrencies, whether it’s a bull or bear market. “Implementing dollar-cost averaging can help lower the average purchase cost and diminish the influence of volatility on one’s portfolio,” Butterfill said.Avoid memecoinsCK Zheng, co-founder and CIO of hedge fund manager ZX Squared Capital recommends investors to look into the more well-established and recognized cryptocurrencies, such as Bitcoin (BTC) and Ether (ETH).Butterfill argued Bitcoin behaves similarly to other alternative assets and has “remarkable diversification benefits, surpassing assets like gold, commodities or real estate.”Bitcoin vs “top altcoins” from 2013.Bitcoin the honey badger. $BTC #bitcoin pic.twitter.com/fP2SNClsE5— James Todaro, MD (@JamesTodaroMD) August 21, 2019
Meanwhile, Deryck Graham, founder of crypto hedge fund Portal AM said to consider balancing investments between speculative and mature cryptocurrencies.Graham added to break down investment sectors — such as Layer 2’s or the Metaverse — and choose related tokens while avoiding those with “little or no practical use,” namely memecoins.“Consider tokenomics, dev team track record, whale investors coming in and leaving, community size, market momentum and liquidity,” he added.Find the themeMatrixport head of research and Crypto Titans author Markus Thielen told Cointelegraph that Bitcoin has “always hit a new high” in a booming market but added new themes drive new bull markets — supporting the idea of investing in new cryptocurrencies instead of those from the previous bull run.Related: 2024 could be very bullish for crypto — Here’s whyAt the same timeSimpson said having high-conviction investments will help with staying on goal as most will have “no chance” of keeping up with a portfolio of altcoins.“I spoke to a guy the other day that has 80 altcoins in his portfolio. There’s no way an individual investor can stay across and know exactly what 80 different coins are doing at any one time.”Simpson, Zheng and Graham all warned against overexposure to crypto through taking loans to invest in the market, investing more than a person can afford to lose or trading using leverage.Investing $1000 in 4 Crypto Assets > $100 in 40 Crypto AssetsWith the 2nd strategy, you are spreading yourself too thin, far lower chance of succeeding.And you have no idea what any of those 40 coins actually do.Which means you’re not making logical decisions.You’re…— Ben Simpson (@bensimpsonau) August 22, 2023
“A leveraged position can result in a total wipeout of capital when one is least prepared,” Zheng said. “It’s important to have the mindset of investment, not speculation.”Simpson added it’s important to have time away from crypto and watching markets. He advised both trading veterans and newcomers to safeguard their mental health.“Go for regular walks. Go for a run. Go to the gym. Be a human.”Magazine: How smart people invest in dumb memecoins — 3-point plan for successThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.