Popular cryptocurrency influencer Ben Armstrong, known as Bitboy Crypto, recently shared a video update on his channel detailing how he lost most of his altcoin portfolio due to investing in the Celsius Network. According to him, his portfolio plummeted from $35 million to $3 million in value, and he had to rebuild it from scratch.
Rebuilding the Altcoin Portfolio
Ben’s strategy to rebuild his altcoin portfolio is to diversify his investments across Bitcoin, Ethereum, layer twos, and layer ones. He said he plans to invest 30% of his portfolio into Bitcoin and Ethereum, while the remaining 70% will be spread across the following cryptos:
- Polygon (MATIC)
- Optimism (OP)
- Arbitrum (ARB)
- Hedera Hashgraph (HBAR)
- Cardano (ADA)
- Internet Computer (ICP)
- Solana (SOL)
- Polkadot (DOT)
- XRP (XRP)
Ben believes that these coins will be the major performers of the next bull run, especially XRP, which he expects to skyrocket once its lawsuit with the Securities and Exchange Commission (SEC) is resolved.
Dollar-Cost Averaging (DCA)
To avoid losing too much money due to market volatility, Armstrong plans to dollar-cost average his investments into these coins over time. This approach involves investing a fixed amount of money into a coin at regular intervals, regardless of its price. Dollar-cost averaging helps investors reduce their risk of buying high and selling low.
Ben mentioned that he is particularly bullish on layer twos, which are solutions built on top of existing blockchains that aim to increase scalability and lower transaction fees.
He believes that layer twos will play a significant role in the future of decentralized finance (DeFi) and that they will help solve the current issues with high gas fees on the Ethereum network.
Although Ben’s approach may not be universally applicable, it serves as a valuable prompt for investors to conduct thorough due diligence and broaden their cryptocurrency portfolio in order to mitigate potential risks.