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MAR 13, 2024

A Guide to Maximising Profits in the Bull

by ChefGunny.sol

Managing bull market conditions can be much more difficult than when in the depths of a crypto winter. In this thread I shall throw out a few ideas and strategies to help keep on top of your portfolio, and make as much money as possible out of this cycle.

Diversification into Altcoins

Alternative coins (altcoins) consist of all other cryptocurrencies apart from BTC, stable-coins and arguably ETH too. These coins, which are akin to penny stocks, are inherently more volatile assets when compared to ETH and BTC, and have produced outsized gains and losses each cycle.
Via picking the right altcoins, one can make extraordinary gains, and turn a small amount of starting capital into a significant position, but this is no guarantee. In doing the necessary due diligence, and picking a promising narrative, you can greatly increase your chances of picking a strong altcoin, of course with a little bit of luck.
In selecting a number of promising coins, even if a few investments fail or underperform, you can still expose your portfolio to the upside, and hopefully a few winners more than make up for the overall investment.

Averaging In and Out of Positions

Even Michael Burry, the legendary trader depicted in ‘The Big Short’, and famous for betting against the stock market before the 2007-2008 financial crash, was unable to pick the ‘exact’ top of the market.
With a DCA approach, you can enter into longer term positions comfortable that lower prices will not be missed. This not only reduces your average entry price, but also eliminates the emotional battle that exists when attempting to catch the lows.
This approach works to the upside too. Once you feel that the top of the market is within sight, you can begin to average out of a position, selling a portion of your holdings every day / week. In doing so, you can get as close to the top as possible, whilst protecting profits and taking some well earned money off the table.
To read more about the benefits to a DCA strategy, and how you can go about doing so, read here:

Maybe Mr Burry would have increased his profits with a DCA strategy. Who knows?

Avoid Marrying Altcoins

Whilst many traders focus specifically on the USD pairings of their alts, for e.g. $SOL / $USD, it is important to also consider their respective value in terms of BTC. If you are taking on a greater risk by purchasing an altcoin instead of BTC, you would want this increased risk to account for greater returns, in the form of a strong $SOL / $BTC pairing. In other words, why would you choose a riskier asset than BTC, only to generate lesser returns than just holding Bitcoin?
Furthermore, it is very easy to get tied down to a specific narrative or ecosystem, it happens all too often. As an investor the primary goal is profit maximisation, and you must not let the hopes and dreams sold alongside each altcoin misconstrue you from this fact. The last thing anyone wants to do is round-trip their bags, especially not me.
Thank-you for reading! I hope you enjoyed this and found it informative. Do drop a follow on X, Telegram and join my Access Protocol pool to stay in the loop.
As always, stay safe and bullish,


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