Ben Simpson (speaker) explains how altcoins can both drag down and boost a crypto portfolio depending on timing within a bull market. He emphasizes rebalancing and trimming altcoins during short-term volatility to protect capital and preserve ability to buy more Bitcoin, while acknowledging altcoins capture outsized gains during strong rallies.
Portfolio allocation and understanding your altcoins are holding back your portfolio at certain periods of time of a bull market is very very important. A lot of people don't understand this, but for me as an investor my ultimate goal is to make more money to buy more bitcoin. So when I want to rebalance my portfolio and trim my altcoins, it's not because my past belief hasn't changed. It's because in the short term we don't see for example the altcoin market outperforming bitcoin. And when bitcoin underperforms, altcoins will way underperform. So you need to understand that during periods of volatility and short term bearish conditions, why I would reallocate and adjust my portfolio is for the short term to protect the downside so I have more capital to invest. It doesn't change my medium term to long term outlook. But altcoins will hold back the performance of your portfolio if you are too heavy in certain periods of a bull market. On the other side, without altcoins when we're really ripping, you're missing out on so much opportunity as well. So don't forget that altcoins do tend to underperform unless you are holding them at the right periods.
