My Altcoins Are DOWN 50%... What To Do?

No Bs Crypto

Introduction to the Problem

The speaker is discussing a hypothetical situation where someone has a portfolio that is down 47% and is considering whether to hold on, buy more to reduce the average buy-in price, or sell some coins and buy others that are expected to perform well.

General Rule of Thumb

The speaker suggests a general rule of thumb: if you're down 20% or more on a coin, it might be reasonable to sell, but if you're down 30% or more, it's situational. However, if you're down 40% or more, it's probably not a good idea to sell unless the coin is a known scam.

Math Behind the Decision

To make an informed decision, the speaker suggests doing some math. For example, if you bought Cardano at $2 and it's now at $0.95, you've lost 53% of your investment. If you sell now and buy another coin, like Render, you need to consider whether the potential gain is worth the risk.

Tax Loss Harvesting

The speaker also mentions tax loss harvesting, where you can use the losses to offset gains and reduce your tax bill.

Example Calculation

The speaker uses an example where they want to achieve a revenue target of $270,000. They calculate that if they sell Cardano and buy Render, they need to sell Render at an average price of $40 to achieve their target. This is substantially safer than trying to sell at the top of the green zone.

Risk and Reward

The speaker emphasizes the importance of considering risk and reward when making decisions. They suggest that it's better to have a clear goal and stick to it, rather than trying to maximize gains and taking on more risk.

Conclusion

The speaker concludes by saying that the decision to sell or hold is a personal one and depends on individual circumstances. They encourage viewers to do their own research and consider their own risk tolerance before making a decision.