Struggling with position sizing on altcoins — how do you manage?

asked by u/emre_r · 19h · 2 answers

I'm still relatively new to the crypto space, especially beyond $BTC and $ETH. When I'm looking at some of the smaller cap altcoins, the volatility is just insane compared to the majors. I'm finding it hard to get a handle on what a sensible position size looks like without feeling like I'm either overexposed or missing out. For those of you who've been around a while, how do you adjust your risk sizing for these more volatile assets?

Join the full discussion

Top answers

  • u/nbondarenko· 1 pts· 16h

    This is something I'm really grappling with too. I've heard some people suggest very small percentages of your portfolio for these, but then it feels like the gains aren't really impactful if one does take off. Is there a common rule of thumb people use for true micro-caps?

  • u/minjun.chen· 1 pts· 14h

    Ah, the altcoin casino. My general rule of thumb is to size them so small that if it goes to zero, I can still afford my morning coffee. Any larger and I start questioning my life choices.

Related questions