Buy Bitcoin & Sell All Your Altcoins

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farooq

New member
May 11, 2018
6
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#1
I am hearing this everywhere, "buy bitcoin, sell your altcoins". Is it true that the time is near? Bitcoin is gonna hit new ATH very soon?

I'm not a fan of altcoins, I broke it when I traded all my bcash for bitcoin a couple days later the fork. I'm all invested in bitcoin, ethereum, litecoin and some other.

Simply put, should I trade all my ethereum for bitcoin? Of course, I'm gonna do what I think is right. But just curious, what you guys would say?

Buy Bitcoin, Sell Your Altcoins, Says Pioneering Wall Street Blockchain Analyst
 

Adriaan Admin

Administrator
Staff member
Jan 30, 2018
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www.bitcoinforbeginners.io
#2
I think this also depends a lot of the strategy that someone is personally applying to his cryptocurrency investing, time horizon, whether or not timing the market are also factors in play. It is a common trend that altcoins overreact on bitcoin's price, which means there are trading opportunities in such scenarios. Currently Bitcoin hasn't corrected as much as many altcoins have, on the other side, generally speaking Bitcoin seems to have less upside compared to many altcoins (only we don't know for certain which alts).

Also there are legions of Bitcoin maximalists that consider any altcoin that is not Bitcoin BTC is a pure scam and should be avoided. I do follow some of those, just to keep both feet on the ground and trying to see things from all perspectives.

Reality is that these markets and technology are so new (and especially those of many altcoins) that there is no possible way to accurately predict where it all will lead to exactly and who will be the winners. At the moment that requires to keep an open minded ear on the ground constantly.

Yes, many of the altcoins seem to be overvalued, especially if you look at their Network Value compared to their actual real world use, (not to mention those that don't even have mainnets), however market prices tend to have future expectations priced in, meaning that the current price doesn't reflect the current value, but the expected future value. So are many altcoins currently overpriced, yes, but some of them might prove their value and actually justify their pricing, however we don't know which ones that will be and in the mean time the markets will react at all whimps and craze. Recently there was this article I believe titled: Amid chaos, the decentralized future is being built, and I thought that was a brilliant description of what is going on right now.

Besides that I believe we are still heading to see some epic failures and collapses, which will also mean wiping away certain assets. Problem is there are just too many "unknown unknowns" still!

Now on to my 2 satoshis; as what maybe shines through my rambling is that it is impossible to know what is going to happen, but we should definitely take all these scenarios into account when we build our portfolio. So I believe diversification and hedging are tools that need to be used in constructing a portfolio that makes sense. Yes, that means that a part of the portfolio will definitely endure losses, but it should be expected that other parts of the portfolio should make up for it. All eggs in one basket doesn't seem the best approach even when that 1 basket is Bitcoin (because even Bitcoin could eventually fail or being surpassed by other technology for all we know).

However I still believe Bitcoin is the safest bet out there, so this should at least be 50% of anyone's portfolio. But against Bitcoin, there is its direct competitor Bitcoin Cash and don't underestimate this club, which I feel many do. Personally I try to hold at least as many BCH units as BTC units. If the unexpected happens and BTC fails miserably and the BCH movement is proven right (which in theory still could happen for all we know, and it is having heavy business development backing), then at least you're hedged. Ethereum ofcourse should be in, but indeed does have its problems too, so I tend to hedge by dividing small investments over the different Ethereum competitors. Yes, I know some seem overpriced and some might horribly fail. And then there is the speculative part of the portfolio that can be used for shorter term trades and ICO's.

So in short I would say that 50-70% in Bitcoin is a safe play with the highest probability of performing very well in the next few years, but some diversification and hedging does make sense too, because even for Bitcoin, there is no guarantee that it will "win" in the end, although it would look very bad to the eyes of the world if it didn't.
 
Jun 12, 2018
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#3
yes, but some of them might prove their value and actually justify their pricing, however we don't know which ones that will be and in the mean time the markets will react at all whimps and craze.