Many experienced investors suggest that altcoin traders may need to shift their mindset rather than waiting for market conditions to improve. Half of 2025 has already passed, and there is no guarantee that the latter half will be easier.
Meanwhile, the buy-and-hold approach to altcoins has failed as BTC dominance has risen for two consecutive years.
Reasons for Transitioning from Buy and Hold to Disciplined Trading
Amid widespread losses among altcoin traders, StockMoney Lizard, a famous investor on X, shared a simple strategy designed for those with less experience. Named the "Low IQ Altcoin Strategy," it consists of four key steps.
- Select Reliable Altcoins: Focus on coins like SOL, ADA, and ETH that have proven robust across multiple market cycles. These coins typically have stronger foundations and lower risk compared to new, small-scale projects.
- Carefully Allocate Capital: Divide trading capital into five chunks to spread risk across various buy points.
- Define Clear Entry Points: Enter positions when daily RSI drops below 30 (oversold signal). Continue adding with each additional 10% price drop after the last purchase.
- Set Strict Exit Points: Close entire positions when profits reach 30-50%. Do not hesitate to wait for higher returns, as the altcoin market remains highly volatile and vulnerable to sudden whale movements.
StockMoney Lizard emphasized that this method does not promise quick wealth but aims to help prevent losing everything, like most altcoin investors. Recommendations include reinvesting half of profits into stablecoins and accumulating the other half in Bitcoin long-term.
"I will not get rich quickly. But I will not lose everything like 99% of altcoin traders... This boring strategy is how I survived my early trading days." – StockMoney Lizard mentioned.
Michael van de Poppe, CIO and founder of MNFund, also highlighted the common mistake of investors rushing to buy only when prices have already surged, which increases the risk of losses.
The disciplined approach suggested by StockMoney Lizard helps reduce the FOMO mindset and lower risks explained by Michael van de Poppe.
However, maintaining discipline can be challenging as many traders still expect quick and large returns.
"A strategy most people don't believe in crypto but need. They want that Lamborghini yesterday," – comment from another investor on X noted.
Altcoin Season, Arriving in the Second Half of 2025?
A recent BeInCrypto report confirmed signs that the altcoin winter may continue. Analyzing the altcoin market cap (TOTAL2) on a 6-month chart revealed that TOTAL2 completed four consecutive green candles and now appears to be entering a red candle phase.
In previous cycles, four green 6-month candles typically ended with two red candles, suggesting the second half of 2025 could still be challenging for altcoins.
However, investor Milk Road observed a more optimistic historical pattern: the market cap bottom for altcoins excluding the top 10 tends to form in June each year.
"Every June since 2021 has marked a crucial turning point for the altcoin market... and June 2025 might follow the same scenario," – Milk Road
This perspective is supported by other investors hoping the altcoin market cap could reach new highs by the end of 2025.
Conflicting signals from various data models add uncertainty to second-half 2025 predictions. One gloomy note is that BTC dominance, which typically declines as the altcoin season approaches, remains at a very high level above 65%. The current BTC dominance has retreated to its highest level since February 2021 with no signs of reversal.
Altcoin investors remain divided. Some are trying to adjust expectations and strategies after previous losses, while others are still waiting for significant returns that could justify years of holding.
