This week has been nothing short of tumultuous for altcoins. While Bitcoin remains steady, trading around the £80K mark with minimal fluctuations, the altcoin market has experienced a significant downturn. Many investors are left pondering: “What should I do when altcoins crash?” If you’re among them, this article will provide a comprehensive guide to help you navigate this challenging situation wisely.
One of the main reasons investors panic during altcoin crashes is poor risk management and portfolio allocation. To avoid unnecessary stress, it’s crucial to have a well-thought-out investment plan from the start.
The ideal portfolio in the current market cycle is:
- 70% Bitcoin: As the most stable and liquid cryptocurrency, Bitcoin often acts as a safe haven during uncertain times.
- 30% Altcoins: This portion can be diversified across several promising projects, with a maximum allocation of 1–3% per altcoin.
With this strategy, even if an altcoin drops by 50%, the impact on your overall portfolio will be minimal. For example, if you allocate only 2% of…
