- Shane Martz is entering the crypto bull run with a six-figure portfolio he plans to grow exponentially.
- He’s following a cycle in which large-caps pump first, followed by mid-caps, and then small-caps.
- His process is to roll profits over from each group down to the next to catch the wave of surges.
Shane Martz felt the FOMO throughout 2017’s crypto bull run as he listened to his friends tout their gains. As much as he wanted to get in on the action, he knew crypto prices were already inflated by that point. So he waited until a correction and began pouring money into crypto in 2018.
When Martz began investing in crypto he took up positions in bitcoin, ethereum, and XRP, because that’s what was available on the Canadian exchange he used. He then spent the next couple of years studying previous crypto cycles and historical trends.
Now, he’s locked and loaded with a six-figure portfolio that he’s planning on growing with a profit-taking playbook for the last quarter of 2021. And although there’s no guarantee his plan will play out, he’d rather be prepared.
Traditionally, Martz is an entrepreneur. By day he owns a job-recruiting website for ski resorts. By night, he’s a personal finance influencer who’s amassed almost 300,000 followers on TikTok alone. His main mission is to create awareness about crypto and stocks.
Martz is generally focused on sustainable stocks and cryptocurrencies. That means investing in companies that support green energy, like electric vehicles. For crypto, he’s bullish on blockchains that are energy efficient. But even in the face of bitcoin’s high-energy mining controversy, he believes it’s more efficient than printing fiat. Plus, miners are increasingly adopting renewable energy sources, he said.
The crypto investing playbook
Seasoned crypto investors often follow a cycle that starts with bitcoin’s price peaking, followed by ether’s, then other large-cap coins. Investors will roll their profits from one cryptocurrency into another in this order, continuing to trickle their money down from larger cryptocurrencies into smaller projects until it reaches micro-cap altcoins.
Right now, Martz has his eye on bitcoin hitting $100,000 for the first time, which he believes may be the start of the next trickle-down cycle.
“I think it’s just the psychology of investing. When people start to take profits from bitcoin [and] ethereum, investors are always looking to the next thing,” Martz said. “So that’s going down the cycle.”
Taking bets on newer projects can be very rewarding, because while large-cap cryptocurrencies could see their prices double, smaller caps could surge by 100 times their value.
“The smaller the cap for the project, the higher the risk, the higher the reward,” Martz said.
But taking on that risk isn’t for the faint of heart, because these altcoins could fail to take off or could see their value plunge by up to 90% in a matter of days. For example, during 2017’s bull run altcoins like reddcoin (RDD) or Verge (XVG) saw gains as high as 1,581,942%. Today, they are pretty much unheard of.
So investors mitigate that risk by re-investing a percentage of their newly-acquired profits into smaller cap altcoins, rather than put in new money.
Martz added that when a bull run hits, cryptocurrencies as a whole will make more headlines. As media coverage increases smaller altcoins get attention too, causing newer investors to come stampeding in.
“So a small-cap project that no one knew about two months ago might actually start getting mentioned along with the bigger ones. And then people learn about them and then the prices will naturally go up,” Martz said.
The altcoins he’s betting on
Martz plans on dollar-cost averaging out of the larger-cap cryptocurrencies while dollar-cost averaging into the smaller caps. This process can generally work with various altcoins that fit into each
market cap
category, but Martz sticks to crypto that he believes has a strong use case.
One of his leading large-cap contenders in solana (SOL). It’s a layer-1 blockchain and Ethereum’s main contender, but with faster transaction speeds and lower gas fees.
The last few months saw Solana go mainstream after it experienced widespread adoption mainly due to its ability to support NFT marketplaces, exchanges, and wallets, Martz noted.
Other large caps he’s bullish on include polkadot (DOT), Avalanche (AVAX), and algorand (ALGO).
After these assets pump, he plans on rolling his profits into mid-cap altcoins. One of his top mid-cap picks is Elrond Gold (EGLD), a project whose blockchain is built for enterprise adoption. It’s focused on helping large businesses enter the Web 3.0 world with scalability. Elrond is also getting into NFTs as well, Martz added.
Other mid-caps he plans on rolling profits into include theta (THETA), hbar (HBAR), quant (QNT), and IOTA (MIOTA).
In terms of smaller-cap projects, he’s bullish on Mina Protocol (MINA). This project dubs itself the world’s lightest blockchain for having minimal energy impact on transactions. Since Martz gears his investments towards environmentally friendly projects, this one is right up his alley.
Another small-cap on his list is serum (SRM).