The Blessing Of A Long-term View
The great thing about buying altcoins that you never intend to sell is that you can pretty much buy them anytime you wish. Obviously, doing your best to buy lows and bottoms goes without saying. It is important to me to continue this accumulation. In February of this year, I decided to recommence accumulating altcoins I intend to hold indefinitely. As it turned out, this was days before alts bottomed.
Altcoins moved significantly higher over recent months and have since been losing ground again. We are currently in similar price zones as we were in February, and I am definitely looking to continue accumulation. Unlike trading, long-term acquisitions don’t need to be perfectly timed. What does matter, however, is continuous accumulation over months and years.
Looking back in years to come will generally confirm this strategy, provided you are buying quality coins. This is probably the most important aspect of a long-term strategy: buying coins or tokens that have no significant future or utility is somewhat of a fool’s errand. They may be volatile and experience price spikes. However, over the longer term, they ultimately fade into obscurity.
An Interesting Observation Across Market Cycles
I have been actively trading over the past couple of days and studying several charts. One thing I noticed is that some coins didn’t break their previous all-time highs in this recent bull run. Even some coins that are considered “blue chip” never managed to reach higher prices. For instance, Litecoin pretty much hit the same high in 2021 as it did in 2017/18. This is a pretty bleak performance, to say the least.
This shows how careful and informed one has to be when dealing with alts. This is exactly why I tend to lean towards staking and income-generating coins. This additional income at least provides some relief when things don’t go as planned. Compounding staking rewards can help to get the “donkey out of the pit” when prices collapse. However, it is another long-term idea that requires time for the compounding to take effect.
What Are The Chances?
I think it is fairly likely that the bottom is in for Bitcoin at 29K! Whether we revisit that level or not remains to be seen. Looking at where Altcoins are in terms of price relative to recent highs, purchasing alts between $30K and $40K appears to be a fairly “safe buy” for medium- to long-term holdings. I was not interested in alts when BTC was trading at $50K and above.
However, the “lockbox” made a compelling case to recommence accumulation. Sideways Bitcoin price action is often healthy for altcoins. Many macro events could further threaten the crypto market, such as further rate hikes. However, these events are usually priced in and only affect price if the announced figures don’t align with market expectations.
The Best Places To Trade Altcoins
The best places to trade larger-cap altcoins are Binance and Bybit, primarily for their deep liquidity and strong reputation among altcoin investors and enthusiasts. On the other hand, these larger exchanges often don’t support smaller projects, especially micro-caps. This is when many traders and investors turn to exchanges such as KuCoin and Gate, which provide access to a much wider range of emerging altcoin opportunities.
Gate and MEXC are excellent for memecoin investors as they often list memecoins soon after release. To access memecoins as soon as they are released, specifically on Solana, JTX and Aster DEX are excellent options. Where possible, it is best not to use unknown smaller exchanges, as trust is yet to be established and the risk element is higher than with industry leaders.
Final Thoughts
Personally, I am happy to buy at these levels. I also got some nice leveraged longs in on ETH in the recent drop to $2750. The best approach is to build income streams so that, when you buy alts, you are not, in essence, buying them. You are using free capital generated daily. This is much better than scraping from your salary and facing potential loss. Passive income is by far the best win/win scenario!
Staking assets can be a great way to generate additional passive income. Some of the most trusted third-party platforms for users who don’t want to stake directly on-chain are Nexo and YouHodler. Alternatively, visit the Earn Free Crypto page for multiple ways of earning free crypto. All the best, happy altcoin hunting! See you next time!
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