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AI-ighty Potential
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THE RIGHT TRACK 🚆
Trading altcoins can be both exhilarating and intimidating. Their extreme volatility presents opportunities for outsized gains—but also significant losses.
To navigate this volatile landscape, it’s essential to understand the role of beta, a measure of how altcoins move relative to Bitcoin, the benchmark for the cryptocurrency market. By timing your trades effectively and respecting beta’s double-edged nature, you can turn volatility into an advantage.
Higher Beta Values 💲
Altcoins generally exhibit higher beta values compared to Bitcoin. In practical terms, this means that altcoin price movements are amplified compared to Bitcoin's. For instance:
A 10% drop in Bitcoin might result in a 30% drop in altcoins.
A 20% drop in Bitcoin could see altcoins losing 50% of their value.
A severe Bitcoin crash of over 30% might drive altcoins down by more than 90%.
Understanding this relationship is critical for anyone looking to trade altcoins. While the risks are significant, the potential rewards are equally substantial if you approach trading strategically.
Timing Your Trades ⏲️
The key to successful altcoin trading lies in aligning your strategy with Bitcoin’s price movements. Bitcoin’s influence on altcoins is so significant that analyzing Bitcoin charts often provides better trading signals than focusing solely on individual altcoins.
A step-by-step approach:
1. Analyze Bitcoin’s Price Levels: Before entering an altcoin trade, determine key support and resistance levels for Bitcoin. For example, if Bitcoin’s current trajectory suggests a drop to $91,000, you can plan your altcoin purchases accordingly.
2. Incremental Investments: Divide your investment into portions to capitalize on potential price drops:
Allocate 20% of your budget when Bitcoin hits $91,000.
Invest another 20% if Bitcoin falls to $82,000-$85,000.
Deploy the remaining 60% if Bitcoin experiences a significant drop to around $78,000.
This strategy allows you to take advantage of lower prices while minimizing risk.
Real-World Example: Dogecoin 💰️
Consider the period between April and June 2021, when Bitcoin’s price dropped from $64,000 to $28,800—a 55% decline. Here’s how Dogecoin (DOGE) responded during this time:
When BTC dropped 20% on April 18, DOGE dropped 40% to a low of $0.23.
When BTC dropped 43% on May 19, DOGE dropped 67% to a low of $0.20.
And when BTC dropped 50% (also on May 19), the low on DOGE was still at $0.20.
Now of course you wouldn’t get the absolute low on your buys. So please keep that in mind. But let’s assume we did and figure out our cost basis.
We bought $200 of DOGE at $0.23… Another $200 worth at $0.20… And the final piece of $600 worth also at $0.20.
This resulted in a total of 4,869 DOGE at an average cost of $0.2053. When Bitcoin rallied 26% from $30,000 to $38,000, DOGE surged to $0.46—a 124% gain based on the cost basis.
When to Take Profits 💱
Altcoin trading is a short-term endeavor. Profits should be taken as Bitcoin begins to rally, as this often drives altcoin prices higher. By adhering to this strategy, traders can capture the amplified gains that beta provides while minimizing downside risk.
Stay Disciplined 🧾
Crypto’s divisibility allows beginners to experiment with minimal risk. Start with a small amount, such as $50, to test the strategy and gain confidence. This low-stakes approach helps you:
Learn to buy during market dips.
Develop the discipline to avoid emotional trading.
Build the skills necessary for larger investments.
By focusing on timing and entry prices, you’ll position yourself to succeed in even the most volatile markets. Over time, these principles can transform your approach and help you achieve consistent success in the crypto market.
COIN SPOTLIGHT 🔍️
Navigating the Bull Market
As we dive into 2025, the crypto market continues to evolve with exciting opportunities and emerging trends. In this installment, our focus is in on three key themes shaping the industry:
U.S. Election and Regulatory Shifts – The political landscape may drive changes in decentralized finance (DeFi) and staking regulations.
Decentralized AI Innovation – Breakthroughs in blockchain-enabled AI technologies.
Growth of the Solana Ecosystem – A surge in Solana-based applications and adoption.
Building on these pivotal trends, following are six compelling assets for your consideration.
Hyperliquid (HYPE)
Hyperliquid is a Layer 1 blockchain optimized for financial applications, particularly its decentralized exchange (DEX) for perpetual futures. With a fully on-chain order book, it’s paving the way for transparent and efficient trading in DeFi.Ethena (ENA)
Ethena introduces USDe, a stablecoin backed by hedged positions in Bitcoin and Ether. By leveraging a mix of spot and perpetual futures contracts, the protocol provides a novel approach to stability. A staked version of USDe also capitalizes on the price spread between these markets, offering attractive yield opportunities.Virtuals Protocol (VIRTUAL)
Built on Ethereum’s Layer 2 Base, Virtuals Protocol is revolutionizing decentralized AI. It enables the creation of tokenized AI agents capable of autonomous decision-making. Users can co-own these agents, opening the door to collaborative AI innovations with real-world utility.Jupiter (JUP)
Jupiter dominates as the leading DEX aggregator on Solana, boasting the highest total value locked (TVL) on the network. As retail interest in Solana surges—fueled by memecoins and AI agent tokens—Jupiter is well-positioned to capitalize on this momentum.Jito (JTO)
Jito, a liquid staking protocol on Solana, has seen explosive growth. It generated over $550 million in fee revenue in 2024, cementing its reputation as a top performer in crypto. Jito’s financial robustness and user adoption make it a standout asset.Grass (GRASS)
Grass transforms unused internet bandwidth into a decentralized data-sharing network. By using a simple Chrome extension, users earn rewards for sharing bandwidth, which is then sold to AI developers for training machine learning models. This unique approach monetizes everyday internet usage while supporting AI innovation.
Strategic Alignment
These additions align with the macro trends of 2025, offering exciting potential in this bull market. Whether you’re a seasoned investor or a crypto enthusiast, understanding these assets can help you seize opportunities and build generational wealth.
FINAL SPIN 📽️
NOTABLE QUOTES 📚️
“The question isn’t who is going to let me; it’s who is going to stop me.” — Ayn Rand
GARAGE LOGIC ☕️
Quiet Conspiracy: Protecting the Guilty
In the final days of his presidency, Joe Biden — or more accurately, those mysterious blog figures behind him — continues efforts to solidify the progress he’s made in undermining the country, particularly anything that might obstruct Donald Trump’s ability to reverse the damage done to national life. These moves also serve to protect those responsible for this damage from facing legal consequences.
A striking example is Biden awarding the Presidential Citizens Medal to former Rep. Liz Cheney for her role on the January 6th Committee. This decision comes despite the already well-documented allegations of misconduct by the committee, including evidence tampering, witness coaching, media lies about testimony, and obstruction of justice. These actions could arguably be considered a coordinated conspiracy, as they appear to have been done with the full knowledge and agreement of committee members.
An argument presented by The New York Times suggests Biden might be considering a pre-emptive pardon to protect Cheney from retribution. Yet, as the voice of the DC establishment, The Times can't help but highlight the dilemma: How can someone be prosecuted for actions they’ve been awarded for? A pardon for Cheney would implicitly signal her criminality. This raises the question: Would Biden then have to pardon every member of the January 6th Committee, given that they were all involved in the same conspiracy?
However, the crimes committed by the January 6th Committee are just one part of the broader issues with the Biden administration. If Biden pardons Cheney, he may also feel compelled to extend pardons to a long list of other officials, including Mayorkas, Wray, Garland, Fauci, Walensky, Austin, Blinken, and Sullivan, among others.
It’s likely that Biden will wait until January 20 to issue such pardons, hoping that the attention around Trump’s inauguration will overshadow his actions. He may even consider pardoning himself for crimes like bribery and treason. Though his cognitive abilities may be diminished, he might still believe that the country won’t notice his maneuvers. But history won’t forget, and when his presidency officially ends, Biden will be remembered as one of the most corrupt, despised figures in American history.