Part 3/8:
The Risks of Full Transition to Altcoins
Another critical trend observed among investors is the complete liquidation of Bitcoin holdings in favor of altcoins, particularly during market rallies. A case in point involved a friend who sold his Bitcoin to invest fully in altcoins, assuming that a shift in Bitcoin's dominance would position altcoins for substantial gains.
This approach can be highly risky. Although altcoin season can indeed bring about substantial profits, it is wise to maintain a balanced portfolio that includes Bitcoin. The digital currency market is unpredictable, and there could be a chance of regression or shifts in dominance. Thus, having both Bitcoin and altcoins provides a safety net against the potential downturns.