I advocate choosing coins and doing research to understand what they are, SWOT, how they trade, sentiment, etc. Also to have a smallish number or core holdings (5-15). BTC is a category by itself since most coins trade against the BTC pair. At any given time, it makes sense to have between 25-50% of your holdings in BTC (w/exceptions). As the mother-coin, ultimately the long term goal is a portfolio metric based on BTC and USD value.
Always have some % in cash to take advantage of dips. I usually try and keep 15% but it fluctuates depending on where we are in the cycle. In Dec, I planned to move to 50% cash, but instead went deep on SC for the expected pumps that occurred in early Jan.
Recovery presents interesting opportunities but a key idea should be to increase your notional BTC holdings. In other words, when you buy alt-coins, you are expecting their value to appreciate in terms of BTC, and with BTC appreciation, USD value follows.
The rest is Alts, usually between 40-60% of portfolio.
During downswings the opposite applies and you should overweight the parent coin.
This was a guest post by fellow trader FaustianAGI in the Sia Discord chat.
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