Struggling with 'conviction' in smaller crypto cap trades, any tips?
Hey everyone, been trying to get a handle on some of the smaller cap coins beyond the majors like $BTC and $ETH. I'm finding it hard to pull the trigger on trades, or even size them properly, because my conviction just isn't there, even after doing some due diligence. With the larger caps, there's a lot more data, history, and institutional interest that gives me a baseline. But with these smaller ones, it feels like I'm taking a much bigger leap of faith, and that translates to me either overthinking or under-sizing, which then messes with my risk-reward.
How do you all approach building conviction in these riskier, but potentially higher reward, assets? Is it purely technical, or is there a certain level of fundamental understanding you need to reach before you feel comfortable?
Smaller caps are inherently more speculative. If you're struggling with conviction, it probably means your risk tolerance isn't aligned with the asset class, or your due diligence isn't providing enough actionable insights. Consider why you're even looking at them if the majors give you more confidence.