Unless you are a newbie, you have probably been investing in crypto for a few months at least and have suffered through the "retracement" of Bitcoin from near 20K to 6K. During this adjustment, the ALT coins took similar, and in many cases more severe, dips; some lost in excess of 90% of their value. So now that most think the recent increase in prices and overall market value is not a fluke or 'dead cat bounce' the time has come to implement a strategy to take advantage in what is hoped will turn out to be a bull market with prices rising back to old highs and beyond.
As a philosophical thinker, the last few months have allowed me to fine tune my thinking about cryptocurrencies and how to invest in them successfully. Here are a few thoughts that should be of help. Realize this is not financial advice, only rumination of a philosopher, and not to be used for other than entertainment purposes. Consult a financial expert before you invest any money in anything; especially crypto.
First, don't be timid. Confidence, even a somewhat false sense of confidence, is extremely important. That will enable you to avoid the temptation to chase every new coin on the market or whatever is booming at the time. It is important that you believe in your own ability to make sound decisions about what coins to invest in and how much in each.
Second, limit your choices to a small number of coins that you really believe are going to be around in 3 to 5 years. Really successful investors, in fact, do not buy 20 coins, for example, to 'spread the risk'. Crypto investing is extremely speculative to begin with and the idea of being conservative in this environment is only going to lead to mediocre returns compared to an approach that is more all in on one or two coins. Betting on ALT coins is fun and often provides unexpected gains when they get hot, but picking those coins and knowing when to buy and sell them so as to not lose your shirt is difficult. Bitcoin has beaten just about every ALT coin out there over time. However, in reality, spreading your hard earned coin around on different ALT coins guarantees you will get average returns.
It is better to put 90% on a coin you believe in because you have carefully researched it and trust in its long term chances of success if you want to make big gains. A rational strategy would even be to go 90% in on BTC if that is your choice. Nothing wrong with it. The important thing is to commit.
It is amazing that someone will spend $100 each on 20 coins and think nothing of it. In fact, people spend such sums on a rumor, or what a friend said, or on something they saw on social media. Spreading the risk is a way of avoiding the hard decision to limit choice to a single winner. The same person who will blithely plunk down $2,000 on 20 coins cannot pull the trigger on putting the entire $2,000 on only one coin. WHAT IF IT FAILS?
This strategy is contrarian and EXTREMELY RISKY, yet offers the biggest rewards. It is the way many great investors made the big bucks.
Another way to think about it is that one is unlikely to go all in unless one is committed. Commitment comes from having done one's homework and having developed the confidence that their choice is a sound one. One must have the confidence necessary to make such a play. So where do you stand? Spread the risk or go all in? Your profits will be a reflection of the choice you make.