Is It Too Late to Join the Altcoin Bull Run? - Crypto Investing Tips

Bitcoin is over $104,000 and we are arguably most of the way through this crypto bull run. Is there still time to take advantage of some potentially big altcoin moves?

The urge to FOMO

If you are a would-be retail investor still sitting on the sidelines watching as Bitcoin rampages up to more than $100,000, and some altcoins and memecoins put in some life-changing gains, it might be more than a little frustrating.

The urge to just FOMO (fear of missing out) into either Bitcoin, or probably into some memecoin that costs a lot less money, could be hard to resist. After all, the cash savings account that is currently paying you up to 5% a year is not going to make you rich, and it likely isnt even going to help you keep your head above water.

Most investors/traders lose money

The first thing to think about before taking the plunge into crypto is that most people will lose money. If the odd few are making millions, there has to be plenty of people on the other side of the trade who are losing their shirts. Crypto is just the same as the traditional stock market. More than 90% will lose their money.

Once you are aware of this fact, and you are still prepared to go ahead and take the risk, you have to decide what you are going to invest in. Always, those giving advice will say that you need to do your own due diligence on the cryptocurrencies you have earmarked.

Who bothers to do the research?

That said, there will be very, very few retail investors/traders that do any kind of research into the cryptocurrencies they want to buy before they go ahead and purchase them. Most will likely go by the recommendations of friends or acquaintances who probably know as little as they do.

You might even go as far as watching the odd YouTube video where certain altcoins are analysed and recommended. However, it must be borne in mind that many of these influencers could be paid to shill these altcoins. Coming across a YouTuber who is honest and skilled in technical and fundamental analysis would be a huge amount of good fortune, and anyway, how would you know?

There is still time to get in

Back to the main question of this article. It probably isnt too late to join the bull run. If previous bull runs are anything to go by, each bull/bear cycle will usually last 4 years. If that holds true this time, and there are never certainties, the current bull market would end at some time towards the end of 2025.

Why not just buy Bitcoin?

So this is the initial risk to take. If you are happy with this, its back to the altcoins, and what you could buy. The first thing to do is find out if your particular altcoin has been outperforming Bitcoin. If it hasnt, then why would you buy that rather than Bitcoin itself? Very few altcoins or memecoins outperform Bitcoin over the longer term.

Nevertheless, many will look at Bitcoin and see that just to buy one BTC will cost $104,000. Who has that kind of money? But you dont need to buy a whole one, you can just buy a tiny part of one, whether that be £100, £50, or even a smaller amount.

However, most retail investors will think that its not worth wasting time on Bitcoin and they will go for an altcoin or a memecoin, that if it goes up big, will pay out big, or at least thats the main idea. Theres plenty of stories out there of people that made many multiples of their initial investment. For all that, most purchases will eventually end in tears.

The best advice

The best advice for someone new to crypto, who wants to invest, is for them to put the majority of their investment into Bitcoin, with the understanding that they need to hold it for a minimum of one bull/bear cycle (at least 4 years).

A much smaller part of their investment could then be put into whichever altcoins or memecoins that theyve decided to go with. If the worst happens, and these riskier investments fail, there is always a pile of Bitcoin that will hopefully continue to grow in value.

If you are really serious about becoming more proficient in the cryptocurrency space, you just need time. Using the rest of this bull market, and the potential year-long bear market, you can read up on Bitcoin etc., so that when the next bull market comes around you are far wiser as to the advantages and disadvantages of this asset.

Your bank or savings account will not save you

On a final note, as already mentioned, your fiat currency in the bank or savings account will not save you. It is a melting ice cube that will reduce in value in terms of purchasing power by probably up to 15% per year.

So many people talk of the risks of investing in assets such as Bitcoin. If you really understood the risks of keeping your money in the bank or a savings account, you would understand how much better off you would be looking into alternatives such as Bitcoin. Happy researching.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Text source: Crypto Daily™

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