Altseason Playbook, Part 1 of 6

Does it seem odd that a bitcoin guy would dabble in altcoins?



Contrary to popular belief, I’m not all about bitcoin. Some of these altcoins will do amazing things, in time.



With altseason picking up steam, I’m sharing six strategies I used to build my altcoin portfolio. Maybe they’re not right for you? Please read them to find out.



Here’s the first — stay tuned for the others, coming soon!




This article is adapted from my December 17, 2020 special issue of Crypto is Easy. To read the whole post, including more tips and commentary, visit Bitcoin hit $20k! Prepare for Altseason.




Take inventory of all your assets and debts



Did you know altcoins are among the riskiest of risky investments?



Especially with altseason pushing their prices way above any rational valuation.



With altcoins, you have no rights or privileges as a token holder. Often, your tokens have no fundamental value. Your government won’t bail you out when the market crashes and even the strongest projects could break up, get hacked, or go to zero at any time.



Many altcoins have ridiculous inflation schedules or treasury policies that encourage early investors to dump tokens on the market. Some have shady teams that aren’t really committed to their projects. Others pay shills to hype them and a handful have no purpose, they’re simply a way for developers and their backers to raise money.



While you can’t ignore the 1,000x potential returns from holding these investments, you should probably make sure you’re in good shape if they don’t work out. A little planning can’t hurt!



Take stock of everything you own and all the debts you have. 



What are your goals for altseason? How much do you need to put into the market to get the result you want?



Can you keep your quality of life if the market crashes today? What’s your plan for after altseason ends? Prices can’t go up forever. What will you do after the inevitable crash that follows?



If you use debt to build your portfolio, do you have enough cash and cash equivalents in case things don’t work out? Have you thought about how to lower the taxes you'll pay on any gains?



What’s your strategy?



For an overview of your financial situation, sign up for a free account with Personal Capital and link your investments, debts, savings, real estate, and other assets—including your crypto—to their dashboard. That way, you get a full picture of your wealth and how your crypto portfolio fits.



Use this link to get a $50 reward for signing up and connecting at least one account.




Get $50 From Personal Capital




You can also sign up for personal wealth management. My financial advisor is super-knowledgeable about wealth creation and how to use different assets, investment vehicles, and financial strategies to put you ahead of the game. I learn something new every time I talk to him.



The dashboard is free and their advisors are good. If you’re going to take the time to find altcoins, it’s worth spending a little time creating a financial plan, too.



Stay tuned for strategy #2.




Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio.



Originally published on Voice.com.

COMMENT

21

preview not available EngrSamest .
09 Feb

Volatility is the nature of this space. Yes, properplanning, study, research will help you to succeed in this space and again don't be move by emotion.

Nice write-up as usual buddy

11

Mark Helfman
09 Feb

Thanks! And thank you also for inviting me to the platform those many months ago 😀

21

preview not available Adelan o
08 Feb

Altcoins are pretty cool, as they have the potential to Moon easily, I do a bit of both worlds, as flexibility is crucial. I hope for a better run for investors. 

20

preview not available Betty Ozemoje
09 Feb

Do people borrow to invest in crypto haha I don't think that will be a wise move for anyone. It's better to use what you can afford to lose considering the volatility rate. 

Looking forward to your next strategy.. 

11

Mark Helfman
09 Feb

Thank you! People definitely borrow to buy crypto, and I agree, very risky decision. I guess this market tends to attract risk-takers!

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