Welcome back,
Recently I shared how I was testing a few tokens with a small investment. They were risky tokens, but since they were still among the top three hundred tokens, I was not very scared when I started dealing in them. The first one was Dog ( BITCOIN ) token, which is built on the Bitcoin blockchain. If you are following the market and the trend properly, then you might already know about Bitcoin ordinals and Runes.
It is built on the Bitcoin blockchain and Runes platform, if you are aware of that. This platform came into the light last year itself when development started on the Bitcoin blockchain. Until now, we mostly used to hear about tokens built on Ethereum and the layer two of Ethereum, but recently the market has also seen some layer 2 blockchain solutions for bitcoin blockchain as well like Stacks ( STX ) blockchain and protocols like Runes.
Runes is actually a protocol running on the Bitcoin blockchain itself. Because of Runes, now people can create fungible tokens directly on Bitcoin. You can see it like the Bitcoin version of ERC-20 token that makes it possible to create tokens on Ethereum blockchain. That is why it is an important development on Bitcoin, because now anyone can create their own tokens. There is a platform where you can go, pay the fees in bitcoin, and create your token.
I know people might be worried about the fees but, fees on Bitcoin network has dropped quite a lot in last two years and that is why people shifted to king of all blockchains and started creating things on Bitcoin network. layer 2 solutions also helped bring developers.
Anyways, the Dog token in which I invested is also built on Bitcoin using the Runes protocol. That is the reason I invested in it, as I thought it might perform well if Bitcoin goes up. But sadly, you all saw how Bitcoin crashed recently and came down by 13-14%. Because of that, Dog token also reacted in the same way.
Right now I am not in a big loss, it is only around 8-10% only, and I know I will recover it. I am not going to panic because when the market recovers and Bitcoin again reaches 115-120k USD, Dog ( Bitcoin ) token will easily pump by 20-30t% as well. So I am going to hold it, and this experiment will continue with different tokens. If you have anything in mind, you can also share with me about those tokens and I will experiment with them as well.
For my holdings in the spot wallet, I think they are still in a loss of around forty to 50%. So even if the market goes five times from here, I will be sitting at only about 2.5X profit on my overall investment. The market has matured quite well, and today I was reading a post on Twitter where someone asked when the alt season will come and when we are going to see 10X gains.
I always say that a 10X return from here is not so easy. Maybe a few tokens will do it, but most of the tokens will only sit around 4X or 5X, not more than that. So it is better to set your targets accordingly. Rest, the investment is yours, so the risk is also yours. For now, I am planning to exit my portfolio at 5X from here for most of my tokens, and for the tokens with higher market capitalization, I will exit them at 3X.
That is my strategy!
Thank you and happy trading everyone.
