Folly of Altcoin Buy and Hold Strategy

1 minute read

Don’t take this the wrong way, it’s a legitimate strategy if you’re looking at quarterly or annual periods and if the fundamentals behind the coin are very strong and above board.

However, altcoins are inherently 95% speculative and you can lose 80% of your portfolio’s worth when using the “Buy and Hold” strategy.

Some examples from my own trading: (the prices are in BTC and came from way back when I was actively trading them)

  • 2016–08–02 02:23:42 Sell 0.00397004 ETC >Now, 0.00130594
  • 2016–10–05 01:57:03 Sell 0.01482382 REP > Now, 0.00665483
  • 2016–06–28 22:17:38 Sell0.00002096 XEM > Now, 0.00000546
  • 2016–08–29 23:43:56 Sell 0.00001305 BTS > Now, 0.00000609
  • 2016–09–07 10:15:30 Sell 0.00000119 SC > Now, 0.00000048
  • 2016–10–02 08:21:52 Sell 0.00031145 AMP > Now, 0.00014300
  • 2016–07–08 08:55:15 Sell 0.00002846 NXT > Now, 0.00000920
  • 2016–09–14 16:43:01 Sell 0.00241999 DCR > Now, 0.00086401
  • 2016–09–15 11:11:41 Sell 0.00074419 EXP > Now, 0.00041119

See? If I held them until now, I lost 75–80% of my altcoin worth.

Bagholding is the riskiest in my opinion and daytrading is the least risky IF you know what you’re doing. When I’m day trading, I only hold bitcoin and three other altcoins at a time. And two weeks is quite long enough just because the chart says so.

Though recently, I have been less active in trading because I felt my day trading is becoming very time-consuming and it’s stealing quality time doing other stuff.

The funny thing is (gulp!) I’m currently practicing this buy and hold strategy. I rationalized to myself, it’s ok since I made sure I get the least risk as possible.

Good thing I found out at the same time as Cryptosky that ICO bounties are very profitable and also other Bitcointalk profit schemes.

I currently have 2.5 BTC worth of ICONOMI and SINGULARDTV (essentially free), all for just promoting them on Bitcointalk and social media platforms. And I’m still scheduled to receive more bounty rewards from other ICOs in the coming months.

I also have some tiny amount of Bitgirls’ coins. The biggest share in my altcoin portfolio is Antshares. And I just have small amounts of BTC.

So, what is the current status of my portfolio? Near breakeven. I didn’t expect Antshares to drop so deep. The freebies and Bitgirls are keeping me from going too much underwater.

But no worries, the coins I’m bagholding hasn’t had their rallies yet, “maybe one of these days, lol.” I’m actually still accumulating by swing trading and arbitration if I have the time.