Most people look at altcoins as a more speculative way to make USD(T) gains, than bitcoin, in the crypto markets.
However, this is not the way I look at things.
In this week’s write-up, we are going to discuss an alternative way of altcoin trading and investing.
Altcoins as a mere Tool to Acquire more Bitcoin
My approach to the crypto market is radically simple. To me, there is Bitcoin land, with a fixed 21 million supply on the one hand and altcoin land on the other hand.
When looking at an altcoin, what interests me most of all is not necessarily how it is performing against a fiat currency (like USD(T)), but mostly how it is performing against Bitcoin directly.
This is where the value of having a (free) Trading View account comes in, where you get access to the altcoin/bitcoin charts.
When an altcoin is bleeding against Bitcoin, it is not worth my time to invest in it, but when I see certain altcoins uptrend against Bitcoin, then they have my attention.
The reason for this is that essentially, when an altcoin is up trending against Bitcoin, it means that I can earn more Bitcoin by holding that particular altcoin, than by holding Bitcoin itself.
At the end of the day, I am not interested to hold any altcoin for the long term, but what I am interested in, is holding altcoins while they are doing well against Bitcoin, to ultimately sell them, not for USD(T), but for Bitcoin itself at a favorable valuation.
Examples of Altcoins with a Proven Track Record
As a personal rule of thumb, I like to stick with altcoins that are found in the top 20 list on coinmarketcap or coingecko in terms of market cap.
Examples of altcoins in that list, with a proven track record against Bitcoin, are for example BNB and Matic.
Both projects have been pushing for all-time high valuations in their relationship to Bitcoin in the not-so-distant past.
As mentioned above, however, my interest is not to exchange or sell those tokens for USDT, but rather, to wait until they reach new highs against Bitcoin at certain levels, before selling them for actual Bitcoin.
Ultimately, everybody’s goals and approach can be different, and while it certainly isn’t wrong to trade or invest in altcoins to make fiat progress in your journey, I prefer to opt to make as much Bitcoin as possible.
With this write-up, I hope to inspire some to take this to heart and take a look at Altcoin/Bitcoin valuations and charts on a day-to-day or week-to-week basis.
Not only can doing this help you greatly in your journey to acquire as much Bitcoin as possible, but by looking at how well particular altcoins are doing against Bitcoin, you will also tend to get trapped less in positions where you are holding altcoins that are simply not worth holding (anymore).
Good luck in your (Bitcoin acquirement) journey,
Jay
