Squeezing Maximum Profits

4 min readFeb 20, 2021

The following article is not investment advice. It is the true story about the current altcoin season and how I invested in it. Famous sayings of Warren Buffett about investing is “Rule №1: Never lose money. Rule №2: Never forget rule №1.” When I invested in altcoins, I tried to remember both rules.

To minimize the risk of losing money, you can build a balanced portfolio of altcoins and think of it as a single investment. In my case, I decided to select 20 coins and bought each of those in equal sum. In that way, if some of those fail, I could cover those losses with a 10x gain of others. I also decided that the market cap should fall between 2–50 million dollars, so even smaller amounts could significantly increase their value. To find good coins in my portfolio, I skimmed thru nearly 500 coins and made a fundamental analysis of interesting ones.

One other good investment rule is to buy low (undervalued) and sell high (overvalued). It might be impossible for any human to predict where the lowest and highest points are, but a good strategy can replace that. There seems to be a pattern that repeats on many coins. There is a lot of volatility right after they came tradable in exchanges. Then the value stabilized, and little while it starts rising. That is the point where I buy. Sometimes, that spot is already history; I bought coins after significant dips in those cases.

Also, other metrics affect when I buy altcoins. One is the Bitcoin dominance metric. A higher value means a more suitable time to buy altcoins…