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Altcoin Season Is Here, Analyst Explains How to Turn $1k Into $10k
- Altcoins like XRP are surging, signalling the onset of altcoin season according to Swissblock’s Speedometer.
- Michaël van de Poppe says he turned US$30k into US$10 million; he suggests investing in new coins and doubling down during market dips.
- Key trading strategies include maintaining a small, focused portfolio and prioritising risk management over speculative gains.
- Rebalancing a portfolio by moving gains from altcoins to stable assets like Bitcoin or Ethereum is crucial for managing market cycles effectively.
Following Bitcoin’s stellar performance, altcoins have been rallying, with some, like XRP gaining 17% in the past 24 hours, surpassing Solana (SOL) and now sitting in third spot by market cap. According to Swissblock analysts, this means altcoin season is here, based on the Speedometer – which also shows low market risk and bullish price momentum.
Last Chance to Turn $1k Into $10k, Says Analyst
So, how can one make the best of these conditions? Well, crypto analyst Michaël van de Poppe says he has turned US$30k into US$10 million, and in a recent post on X, he shared his tips on how to pull that off.
Related: Crypto Tax Exemption Plan to Put Hong Kong Ahead in Competition for Investment
He is not even here to tell us that it’s memecoins that’ll make you filthy rich. Although it can be done, most will end up holding the proverbial hot potato in their hands.
You’re constantly hearing a lot of great stories about people making millions from nothing in memecoins. For sure, this can be done with memecoins, but you should realize that you’re far on the edge of the risk curve and that, the further you go, the more people will lose rather than win.
Michaël van de Poppe Van de Poppe recommends two, more nuanced, approaches. First, going in on new coins that still have room to run – he specifically mentions SEI and TIA which would have been a great bet in early 2024 – and second, doubling down on your convictions when the market corrects.
The bull market lasts in multiple stages, and we all remember the massive peaks up and down. The peaks up are there to generate return, but actually, most return is made by having the guts to be stepping into an asset again when it’s down 50% in a single week or month.
Michaël van de Poppe Trader Shares Four Top Tips to Succeed
Apart from these general tips, Van de Poppe also had some key principles to share with his followers.
- Less is more: The key principle of managing a portfolio effectively is to maintain fewer assets, ideally between 6-8, as this simplifies management and potentially enhances returns, given the inherent correlation among assets, says Van de Poppe.
- Small coins, risk management and yield: When building a portfolio, it’s more prudent to focus on risk assessments rather than potential returns, prioritising stable, higher-liquidity coins that likely won’t drop as much during market shifts, rather than chasing speculative high returns from past cycles, according to the analyst.
Related: Bitcoin Boom Towns: Vancouver Eyes BTC Investment, Bern Backs Mining Move
- Patience: Van de Poppe believes that the markets are just beginning to move upwards, with some coins showing a 2x return; however, to achieve significant returns, he recommends patience to avoid excessive trading and mistakes during runs, especially if you’ve positioned yourself well during the accumulation phase and are aiming for higher gains.
- Rebalancing: Finally, he says that the key to navigating market cycles successfully lies in the ability to rebalance your portfolio, which involves shifting gains from altcoins to more stable assets like Bitcoin, Ethereum, or USDT after significant returns. This strategy not only mitigates risk and adheres to a strict plan but also allows flexibility to capitalise on market fluctuations, positioning for further potential gains as altcoin values fluctuate.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
