A Crypto Investor Will Try to Hit Home Runs — But They Do Better Hitting Singles | by Tom Handy | Jul, 2023

The problem many investors get caught up in this old-time lesson.

Crypto winter is just about over as long as you consider recent news nothing to get worked up over. So this is the perfect time to address how you need to get ready for the upcoming bull run which is right around the corner.

Just look at these numbers.

Inflation is dying according to the latest stats. A few months ago inflation was trending at 8% to 9% and recently it’s down to 4%. You may still think it’s high as many businesses are still charging like it’s 2022 prices.

These numbers will go down, so you need to be patient.

Then unemployment numbers are still low considering thousands of people continue to get laid off every week or so. The unemployment rate is hovering around 3.7% which is pretty good even though Fed Chair Jerome Powell wants more layoffs.

So Powell wants more pain to come down the pipeline. It is likely to happen in the real estate sector, possibly in commercial buildings, as more people are working from home than before COVID. Some experts predict this will happen in 2023 or 2024 if it hasn’t already started.

This could mean perfect timing if you’re a cryptocurrency investor. Yes, SEC Chair Gary Gensler is still the most hated person in the cryptocurrency sector. After declaring many popular coins were securities, he gets no love from a lot of people.

But the timing is perfect if you are invested in the right cryptocurrencies. This a tough one so I think it is best to have your money on a few different cryptos.

The one you think that will take off may only double or triple in value. Other cryptocurrencies may see a 10X or more.

This is what happened to me in the last bull run. I was expecting to see more altcoins make me a millionaire, but I wasn’t even close. It is always good to review how you did in the past and try not to make the same mistake twice.

The stock market used to have an old saying, past returns do not equal future performance.

This was a popular saying in the 1990s and early 2000s but I don’t hear this getting said too much lately. Numbers really haven’t changed, but some timeless investing beliefs may have,

It is a good reminder to have in your head.

Many altcoins that did well in the 2017–2018 bull run did not repeat as well in the 2021 bull run. A few disappointed many cryptocurrency investors.

I say this since you need to stop listening to all the gurus telling you this crypto is going to 10X or that crypto is going to 100X. No one really knows.

Even gurus who predicted Bitcoin to reach six figures were off tens to hundreds of thousands of dollars in the last bull run.

That should make you think twice about trusting someone on YouTube or even on the internet.

With 26,230 cryptocurrencies as of today, I’m going to tell you exactly what to do. Unfortunately, I won’t tell you which coins to pick.

Picking cryptocurrencies gets personal. Some may like Bitcoin (BTC) and others like Ethereum (ETH). Then some like Ripple (XRP) and others like Stellar (XLM).

I will tell you though, that you need to have at least some BTC and EH in your portfolio. These are the like owning gold and silver in the precious metals market.

You need to own at least some of these to make up your cryptocurrency portfolio. They are not going anywhere but up.

They may be slow movers but they will help form some balance in your investment.

Then you can add some altcoins.

If you think one of your altcoins is going to hit a home run or be the big winner, remember what I said earlier.

Past returns do not equal future performance

But if you have a basket of several cryptocurrencies, it is likely they will all go up in the bull run. All you need is just one or two of the cryptocurrencies to hit a home run.

No one knows what the future holds. You don’t know the exact details that are going on in a founder’s head. And you don’t know what cryptocurrencies will get a push from Wall Street or pushed down by a government agency. Then you don’t know which cryptocurrency will get hacked.

Lastly, you really don’t know which cryptocurrency turns out to be a fraud.

All of this has happened in the past several years since I’ve been in the market.

Because of that, you need to have your money in several pots. The diversity of your portfolio will help and not hurt you.

If you keep all your investments in one or two areas, you could lose, big time.

Diversify your portfolio and hit many singles. Some of your cryptocurrencies will do well and some could be a home run for you.

It’s hard to be on top of every cryptocurrency. As I mentioned there are over 26,000 coins out there.

Come to think of it, there were more a few months ago. Some of these cryptocurrencies will fail. Some of these cryptocurrencies are frauds.

Look at Terra Luna and FTX. Both companies looked like they were doing well and then all of a sudden, the rug got pulled out from under them and many people lost. I say people since not everyone was an investor. Many prominent people, including politicians, were taken in and lost their money as FTX collapsed.

People such as Do Kwon who led Terra Luna and Sam Bankman Fried who led FTX, seemed like normal people upon first appearance. But as their companies collapsed, you really find out more about these new founders. The same can happen to any cryptocurrency company.