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Michaël van de Poppe
@CryptoMichNL
CIO & Founder @MNFund_ and @MNCapital_vc | Host of @new_era_finance | Macro-Economics, Value Based Investing & Trading | Crypto & Bitcoin Enthusiast
参加 May 2010
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The theorem behind #Altcoins# is super easy to navigate. You'll just need to remain grounded. Let me show you an example. $STRK has gone ballistic. It did do more than a 4x in less than a month. Fantastic. Now, people start to question whether they should be buying into it. After a 4x? Same principle as with $W. I've received questions at $0.03 whether it was a wise moment to be buying into it. Sure, because I was selling at those levels, but in all reality, that isn't a proper strategy, right? In the case of $W, due to higher volatility, it has already dropped 20% on a single day. Still fairly organic volatility on an altcoin. The thing with them is that you'll see the most extreme form of negative sentiment at the bottom, and the most extreme form of euphoria at the top. Now, if you look at $STRK with all rationale. Buying at $0.12 might seem like a wise idea, but what's the upside going to be? Maybe 10%, 20%? What's the downside going to be? Well, if it drops 50% to $0.06, it would still be fine. That's a relatively negative risk/reward, isn't it? Now, flip this around. Heavy correction. Probably we'll start to hear some bearish sounds coming in the longer this sustains. If this drops to $0.06. What's the downside? Maybe 10%, 20%, 30%? And what's the upside? Perhaps 100% or perhaps even 200%, 300% if there's a new leg? That's a good risk/reward to me. A simple, but yet effective guideline into altcoins. Make sure to bookmark this one.
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