If you’ve been in crypto for some time you know that a great way to make more bitcoin is to trade altcoins..
Trading altcoins feels great when you hit those 2x, 3x or 10x returns.. But if you spend too much time in altcoins, at some point you will notice that your alts are underperforming BTC and you are losing bitcoins..
So even though, you might be making money in USD/EUR terms (the fortunate case) — your alts are worth less and less bitcoins.
People who stayed in alts in the summer of 2018 know the feeling of being down 50% down in bitcoin even though their USD holdings increased… And if you were in alts in January 2018 while bitcoin dropped you made a bitcoin fortune.
But how do you determine if winter is coming or if the party is around the corner?
We have created a model based on bitcoin’s dominance to determine if you should be overweight bitcoin or overweight alts.
The solution: Have more alt exposure when bitcoin dominance is decreasing (red fills) and have more bitcoin exposure when bitcoin dominance is increasing (green fills).
Right now, the dominance model is still green, so favor BITCOIN and stay safe :)
Happy trading!