Author: Niu Ge.eth
Note: This article is from @btc100w100w on Twitter, organized by MarsBit as follows:
In the previous issue, we detailed how small funds can reasonably allocate in a bull market. Today, I will discuss how medium and large funds can allocate reasonably in a bull market based on my experience.
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Personal experience, for reference only, and welcome discussions in the comments.
Medium-sized funds are approximately 200,000 to 1 million RMB.
Large funds are approximately 1 million to 2 million RMB or more.
If the fund size is even larger, it is recommended to allocate most of the positions to Bitcoin and Ethereum.
① Medium-sized funds generally tend to be relatively conservative, with some aggression based on personal trading habits.
Conservative investors can allocate 40% to mainstream coins, 20% to the top 50 altcoins by market capitalization.
Allocate another 20% to altcoins with a market capitalization of 100-200, and keep the remaining 20% as mobile funds.
Aggressive investors can allocate 40% to the top 50 altcoins, 20% to mainstream coins, 20% to altcoins with a market capitalization of 100-200, and keep the rest as mobile funds.
(Medium-sized funds have a slightly larger volume. With sufficient capital during a bull market, this allocation ensures that each step has the coins you have allocated for profit. It is not recommended to have too many different coins. When selecting projects, look at endorsements, activity, and track records. Allocate to one project in one track. If the coins are too diversified or the tracks are repeated, it is no different from small funds. In a bull market, you still need to have the courage to hold heavy positions.) The remaining 20% of mobile funds can be used for popular short-term trades or for satisfying the desire to trade during a bull market. This allows you to exercise your trading skills without affecting overall returns. If the timing and allocation are good, there is still hope for a 5-10 times return.
② For large funds, it is recommended to focus on conservative strategies. Allocate 40% to Ethereum and Bitcoin, 30% to selected popular altcoins in hot tracks, and 10%-15% to low-cap altcoins as lottery tickets. Keep the rest as mobile funds.
(With this fund allocation, when a bull market arrives, Ethereum and Bitcoin will definitely take the lead, followed by the second round of narrative, which is the rise of major sectors. It is only in the middle stage that altcoins will start to rise in turns. This allocation allows for stability and security, while maximizing returns as much as possible.)
There are also considerations such as position control and mindset control. Learn to gradually cash out. We will discuss this in detail later.
A bull market brings quick profits, but also quick losses. Learn to stop and gradually cash out.
— 牛哥.eth (@btc100w100w) July 22, 2023