So I am in a situation where I have found a potential project I can invest in for the long term and gain huge profits.
At the same time the current market seems the correction is over and another bull run might start.
I am having an urge to invest all that I can in the potential project I like but it is also a good time to diversify the portfolio and trade some nice coins to gain short term profits.
What would you guys do if you were in such a situation ?
@mk4
how long you're planning on holding
I can hold very long. Let's say 15 years or so.
what your other investments are(inside and outside crypto)
BTC and ETH
Little amount in Mutual Funds
what your asset allocations are
Not sure how would I describe that
what your trading strategies are
More of swing trading. Buy the dip, wait for a good price to sell (time doesn't matter)
what your risk appetite is, and how much money you can afford to lose
I can afford to lose not more than 25%
15 years is a very long time we are talking about. Even if you blindly trust the project and even trust the promoters even a single mistake can lead to abandoning of the projects. I am saying this keeping at par with most of the startups in the world. Most of them have great ideas but it doesn't just require a great idea to succeed. So putting all your investment in that particular project for a period of 15 years is nothing less than stupidity. That also at the time of a bull run because we know for a fact that when BTC prices would go south in bear market the whole market would go red.
Also seeing your risk aversion which is good 25% I think you can try to trade your way out. In just 1 year or so you would be enough trained to take money anytime out of market. Then in future you can invest this money in that potential project at time of bear run where you might find better prices.