Most of us still own old cryptos that have underperformed, like DOT, XTZ, ADA or EGLD... Personally i still have DOT and XTZ, two great losers, let me explain you why in a few words. I don't talk about price but about revenues, fees perceived by these blockchains, which hugely depends on the success of their Apps.
When I first bought into Polkadot and Tezos, man, I was so convinced they would change everything. The tech looked awesome on paper. But here we are years later, and looking at the actual revenue these networks generate... it's pretty disappointing.
The problem is simple - they just haven't attracted enough developers building stuff people actually want to use. No users means no transactions, which means these blockchains aren't earning much in fees. Both are still developing, but honestly the growth has been way slower than I expected.
So what do you do with these underperforming bags? There are a few ways to go:
HODL - Just keep holding and hope things turn around eventually. Makes sense if you still really believe in the project despite everything.
DCA - Keep buying more to lower your average buy price. I wouldn't recommend this unless you have crazy strong conviction.
Swap/Rotate - This is what I do. I watch for opportunities to move into stronger assets.
Cut Losses - Sometimes you just gotta admit you were wrong and move on.
For me, I've settled on a pretty simple approach. I keep an eye on the DOT/ETH ratio, and whenever DOT pumps a bit against ETH, I swap some over. Same with XTZ. I've been slowly moving into ETH this way whenever I get decent opportunities.
I figure, why keep holding something that's not generating real revenue when I could own something that actually is? At the end of the day, these blockchains need people using them and paying fees or they're just fancy tech demos.
Anyway, that's my strategy - nothing fancy, just watching the ratio charts and slowly swapping during favorable moments. Not telling you what to do with your bags, but this approach has been working okay for me.
