In my opinion, the way crypto has been functioning over the past year clearly signals that holding altcoins in the spot market just isn’t cutting it anymore. Most of the spot holders are becoming the bag holders carrying coins who have constantly lost value and are continually doing so.
Alts Are Making New Lows
Since March last year, many altcoins have seen staggering declines—often losing between 60% to 80% of their value. For instance, coins like #Arkm Manta PHB UMA Ace and many more have consistently hit new lows. No matter how low you buy in the hopes of a rebound, the market trend shows deep lows and only lukewarm recoveries.
Spot Trading Limitations
In the current market, spot traders are finding themselves stuck:
Limited Profitability: Even if you manage to cash out, the minimal rebounds hardly justify the risk.
Inability to Hedge: When the market turns down, you’re left waiting with your assets, unable to switch positions and mitigate losses.
HODL is Outdated: The traditional buy-and-hold (HODL) strategy seems less viable, as holding onto alts means riding out prolonged downturns with little hope for quick recovery.
Futures Trading is More Viable Option
Given these challenges, futures trading emerges as a smarter strategy:
Play Both Sides: With futures, you can go long when the market shows signs of recovery and short when it dips further, allowing you to profit from both upward and downward trends.
Dynamic Risk Management: Futures contracts enable you to exit positions and lock in profits quickly, which is crucial in a market where waiting could cost you dearly.
Capital Preservation: By actively managing your positions, you have a better chance to protect your capital rather than being caught in prolonged, unprofitable trades.
In current market I don't think hodl or spot will fetch you any good returns.
What are your thoughts on this shift? Are you considering moving from spot to futures in your trading strategy?
Let’s discuss in the comments below!
