I'm really into swing trading which often requires a lot of patience. Things don't usually play out the way we want them to in the time frame we have pictured in our minds. I am not very patient by default, but I think that's something that can be trained and learned.
Recently, I've been reading quite a few arguments about why it's not so good to have a large portfolio. And yes, I have a large portfolio—31 coins at the moment. It sure takes a lot of time to manage that, but it also has some benefits.
Even though altcoins are subject to Bitcoin dominance and suffer a lot when BTC drops significantly, they do have their moments of rise and fall. I've noticed that having a large portfolio takes away some of that anxiety and impatience as after trading one asset you can leave that position to cook for a while and focus on other ones.
I have recently been contemplating the idea of rotating assets within my portfolio. For example, I sold some $PENDLE when it surged and rotated that into $TAO, which had been cooling off at that time. Since I believe both of these will do well during the upcoming alt season, I find this a pretty solid idea. Now, I just have to wait for the tide to turn and swing back to $PENDLE, hopefully increasing my holdings of both coins in the future.
Farewell to The Baby Hippo
I have been holding a very small bag of Solana $MOODENG in my wallet for a while now. The price has been declining almost through the whole time making it a pretty awful buy, to be honest. However, today we just witnessed this baby hippo showing some signs of life.
As we can see in the chart above, the MOODENG volume has been flat and the price was slowly but steadily dropping yet just an hour ago it woke up. Something must be happening...
And yes, it's the usual suspect - the Binance listing announcement.
Perhaps this is a new beginning for MOODENG but I ceased the opportunity and exited my position. The MOODENG narrative isn't something I believe will run for a longer time so I rotated the small amount into $GOAT which is another degen play but one that I see greater potential in.
After the hippo exit, these are the 4 meme coins I'll be focusing on:
- WIF
- POPCAT
- SPX
- GOAT
The first two are perhaps more established ones while the two latter are more degen plays. I wasn't planning on jumping into the meme coin craziness but it happened anyway. Still, these should be enough (for a while)...
Listing Pumps
A bit more about exchange listings. Just yesterday evening I was thinking about the impact and importance of them after watching a market analysis video in which this was mentioned. The smaller meme- and other altcoins have an advantage over blue-chip ones(BTC, ETH, SOL, etc.) in not having a major CEX listing yet. If the project is otherwise good and promising, a listing announcement made by one of the big ones(Coinbase, Binance, or Kraken) can send it halfway moon even during a downtrend. This is also one of the plusses of having a larger portfolio - you might get to enjoy these surprise pumps more often if you are exposed to a larger selection of coins.
Going back to my meme coin holdings, for example, $POPCAT is something that could very well be listed on Binance someday. I mean, they have listed $WIF so why $POPCAT? And by the way, $WIF on the other hand isn't listed on Coinbase so there's that possibility and that's a plus under WIF as well.
Even though I'm still developing my crypto research methods and routine I'm surprised I haven't been paying more attention to exchange listings. It's definitely something to take into consideration when choosing a project to invest in.
Conclusion
Sure, having a large portfolio takes time and you are also exposed to more risks but in my opinion, it does have some pros.
Even during a downtrend, there's always one or two tokens that are surging. With a larger portfolio, you can take advantage of this by selling at profit and rotating into ones that you believe will do well in the future but are currently down. In addition to this, you also gain more exposure to possible surges made by exchange announcements.
Besides, we might already be holding a true gem, we just don't know about it yet. However, the odds for that to happen are better with a large portfolio.
What is the optimal number of coins to hold in your opinion? Let me know in the comments! 👇
DISCLAIMERS:
- This is NOT financial advice.
- Thumbnail image created with Canva
The advantages of having a large portfolio.
TON mini-apps I'm currently playing:
🔹 Blum - play mini-game and complete tasks to earn Blum points (pre-market trading live on Whales Market!)
🔹 Wizzwoods - cool strategy game (Berachain + Tabi)
🔹 TON Station - very simple farming game with a lot of potential
🔹 Agent 301 - perhaps the next $DOGS
🔹 Human Protocol - well-made mini-app with a prediction game. Use your points to bet on US elections, sports, etc.
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I can agree that it is good to have a large portfolio, but in value rather than being too diversified. I have 20 assets in my portfolio and I barely can keep up with their management. I think having about 5 assets is the sweet spot in order to put all of them at work the best.
20 is good, 20 is pretty optimal and something I'm aiming for. Just need to exit some positions first.
In my opinion, 5 is way too low and would leave me seriously under-exposed. There are more than 5 sectors with a lot going on and I want to hold at least the alpha plays + few beta plays in trending sectors.
But I guess at the end of the day it's very subjective and depends on how much time we each have to put into research and management.
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