The trader regards the numero uno crypto by market cap to be the safest investment for people venturing into cryptocurrency domain. Hence, he suggested holding 25% to 50% of portfolio in Bitcoin.
Nevertheless, Armstrong explained that it was not the case usually and admitted that he mostly purchases altcoins for a major portion of his career. The trader further disclosed:
“I think altcoins are the easiest and most explosive way to make your portfolio explode (…). If you try to flip thousands of dollars into 6 figures, Bitcoin won’t get you there.”
Additionally, he disclosed that Ethereum and Cardano make up his second and third largest investments, with a share of 22% and 10.92%, respectively. He assessed them as the top crucial ventures in the crypto domain and appropriate assets for a robust and even-handed portfolio. The investor further said:
“The volatility and risk of top projects is much lower than projects outside the top 20 or top 100. Even if you are looking to invest in small cap currencies, you need exposure to the top currencies. The returns are still great, but the risk is lower. This is the kind of advice I give to my own family.”
The trader acknowledged that his portfolio comprises of several altcoins and suggested investors to avoid extreme diversification. On those lines, he advised that an ideal portfolio should be made up of 5 to 20 altcoins, depending on the risk profile of the investor. Armstrong stated:
“For a portfolio with $10,000 or less, I strongly suggest having between 5 and 8 coins maximum. The reason is simple, if you have $1,000 and 100 coins you will not be able to make massive profits.”
Pointing the cryptocurrency kinetics “cyclical,” the trader detailed that investors should book profits during “altcoin seasons.” Apart from that, they overlook the chance to book profits.
Additionally, the trader’s portfolio also includes Aave, Polkadot, Graph, Ethernity Chain, Chainlink, Uniswap, Synthetix, Compound, Cosmos, VeChain Elrond, Tezos, Solana and Frontier. Nevertheless, the crypto token has yield maximum profits is Cardano (ADA):
“Our most profitable coins here are Cardano, it’s our number one most profitable coin we’ve ever had, and ERN. And I think that ERN is going to end up actually being number one here in the near future.”
On the contrary, his holdings of cryptocurrencies which are currently recording large losses are Aave and Ethereum.