This week has been nothing wanting tumultuous for altcoins. Whereas Bitcoin stays regular, buying and selling across the £80K mark with minimal fluctuations, the altcoin market has skilled a big downturn. Many traders are left pondering: “What ought to I do when altcoins crash?” In the event you’re amongst them, this text will present a complete information that can assist you navigate this difficult scenario correctly.
One of many foremost causes traders panic throughout altcoin crashes is poor threat administration and portfolio allocation. To keep away from pointless stress, it’s essential to have a well-thought-out funding plan from the beginning.
The best portfolio within the present market cycle is:
- 70% Bitcoin: As essentially the most secure and liquid cryptocurrency, Bitcoin typically acts as a secure haven throughout unsure instances.
- 30% Altcoins: This portion could be diversified throughout a number of promising tasks, with a most allocation of 1–3% per altcoin.
With this technique, even when an altcoin drops by 50%, the affect in your general portfolio shall be minimal. For instance, if you happen to allocate solely 2% of…
