Expert Advice for Altcoin Investors
Date: 2023-12-19 Author: Dima Zakharov Categories: BUSINESS, IN WORLD
The Ideal Time for Altcoin Investments
Michiel van de Poppe, the founder of Eight, an investment company, suggests that the current period of consolidation in the altcoin markets presents an ideal opportunity for investors to plan their next moves. He acknowledges that choosing the right alternative cryptocurrency for investment can be challenging but also emphasizes that it's achievable.
Beware of Social Media for Information
Van de Poppe warns against relying on social media for cryptocurrency and altcoin information. He notes that most account owners on these platforms often have biases or personal interests in the data they provide, making it difficult for observers to discern their true motivations.
Bullish Trends in Altcoins
Despite the challenges, altcoins have been yielding substantial profits in recent weeks, suggesting a bullish market, according to Van de Poppe. He cites the example of the meme token BONK, which saw a 20-fold increase in its value over just two months.
Lessons from BONK
The expert stresses that significant price surges in a cryptocurrency do not necessarily warrant immediate investment. Using BONK as an example, he suggests considering using such altcoins for day trading to mitigate potential investment risks.
Beware of FOMO
Van de Poppe also addresses the fear of missing out (FOMO) that often grips investors when they hear about others' remarkable gains. He cautions that most stories of profitability are incredible but often fabricated.
Focus on Undervalued Projects
For those looking to invest wisely, Van de Poppe recommends paying attention to projects and ecosystems that haven't experienced substantial price changes yet. He believes that rational investors enter the market during quieter periods, when there is fundamental progress but prices have not caught up.
Timing is Key
In conclusion, the cryptocurrency researcher emphasizes the importance of understanding market development phases. He suggests that many cryptocurrencies are still in the accumulation stage and could potentially surge in value by two to ten times in the near future. Smart investors seize opportunities during market lulls, while less savvy ones enter when the frenzy peaks.
