Altcoin boom ahead? Time your Crypto investment to get maximum profit
As Bitcoin continues to captivate the crypto world, savvy investors are looking to altcoins for their next big opportunity. Meanwhile, a recent tweet by a prominent crypto analyst outlines a strategic guide to creating life-changing wealth in the crypto space. This guide is especially important because bitcoin cycles affect altcoin performance.
Bear Market Years: Play it safe.
During bear markets, like the ones in 2014, 2018 and 2022, wise advice suggests playing it by holding most of your portfolio in cash. This strategy helps reduce risk when crypto prices drop, leaving you ready to jump on opportunities when the market starts to recover.
When approaching Bitcoin halving years like 2015, 2019 and 2023, wise advice is to convert some of your money into Bitcoin. Historically, Bitcoin tends to rally and outperform altcoins during this period, making it a smart move to position your portfolio as the halving approaches.
Half Year: Go Big on Bitcoin
Bitcoin's halving event, which slows the rate at which new bitcoins are created, triggered a historically high price increase, setting new all-time highs for BTC. Bitcoin's market dominance will usually increase in half-years like 2016, 2020 and the upcoming 2024.
Wise advice suggests that during these years, investors should prioritize holding more bitcoins than cash to take full advantage of the high price increases, which can lead to higher returns during these critical times.
Altcoin time to shine
After the drawdown, in years like 2017, 2021 and 2025, altcoins will start to outperform Bitcoin as BTC's dominance declines. Holding more altcoins and reducing your cash holdings will be beneficial. Wise advice advises investors to hold more altcoins.
As the market generally moves higher at this level, reducing cash holdings and increasing investments in altcoins can yield significant gains, allowing investors to take advantage of the momentum created by the semi-post market volatility.
This approach ensures a strategic balance between Bitcoin and altcoins, improving returns throughout the entire half-cycle.
