Altcoins That Are Now Moving Into My Accumulation Zone
Altcoins can render great returns but they can also shrivel up and die. This is something that I pointed out in a recent article. Even though Litecoin is still ranked quite high and has Mimble Wimble coming up, its performance was not that great in the recent bull run. LTC only managed to peak at its previous all-time high, which means that hodling LTC from the last cycle peak to the 2021 cycle peak was a waste of time. However, buying the bottom would have yielded a 10X return. This is still not a good return for Crypto but it’s still acceptable.
What I am pointing out is that even if you buy the bottom of a coin that barely performs you can still do well. If the coin goes on to perform well then it’s a win/win. So, these are coins that I am not particularly bullish on but find increasingly attractive at current market valuations.
I had a bag of ADA that I picked up for approximately two or three cents, which I chose to sell prematurely some time ago. I have been of the opinion that the coin was way overpriced above $3 and mentioned it a few times to my readers. Dropping below a dollar has managed to recapture my attention and I would ideally like to begin accumulating a small position if the price were to fall below $0.60. I will start to utilize smaller passive income models to buy small allocations of Cardano at this point. A move below $0.60 would see me looking to increase this somewhat. A return to the previous all-time high from $0.60 would imply a return of approximately 5X, which is acceptable, considering ADA is a staking coin and ultimately a small business.
DOT still has a lot going for it in my opinion. I still have some DOT that I picked up in the early days. This is another coin that is great for staking and subsequently creating another income stream. Ensuring that a coin or token has an income-generating slant is always part of my process. Sure, almost anything can be staked nowadays but often through centralized or DeFi entities. I find authentic POS the safest option and prefer to have it as an option. I think Gavin is exceptionally talented. My optimism in regards to Polkadot is largely due to Gavin Wood. There are many ways that you can weigh up an investment opportunity. You can look at the tech, the use case, and in this case, the man behind the project.
Even though Elon Musk is not the man behind Doge, he is an outspoken supporter. In this particular instance, a man has brought value to a project in spite of the tech and use case.
LINK at $10 is already a 5X to the previous all-time high. Considering that the price can easily fall a lot lower if the stock market continues to edge lower, it makes for a good buying opportunity. There comes a time in the price action when fresh accumulation begins to make sense. It may not be the bottom but if you continue accumulating from a certain point, your chances are fairly good that you will be rewarded. Buying just once is a foolish strategy in my opinion. I look for projects that enter a “good zone” and then schedule consistent accumulation. For instance, readers will be aware that I began accumulating SOL when it first hit $80 a few months ago. I have been buying this zone consistently and will continue to do so.
When the price recovers, I will be well-positioned to capitalize on it. There are a lot of views currently surrounding Solana. However, there is way more to take away from these events than what is being addressed. I will expound on this in another article.
There are however other projects I am currently buying but those are perhaps more high risk/reward-based. These selections are primarily top-tier projects. Avalanche is another one that I like at $50. I am already accumulating AVAX, albeit slowly. Bitcoin is also always in the accumulation zone for me via passive income models. I no longer invest with my own capital but rather with the fruits of what I have built over the past number of years.
Many are now giving up but this is when the money is made. I love bearish seasons! Wishing you well in your Crypto journey, see you next time!