Kusama has performed exceptionally well during 2020 and just so happens to be one of my best picks this year. Unibright is another altcoin I picked up in late 2019, if I remember correctly and is still up approximately 1000% from my entry point. KSM had a blow off top at a little under $60 but has a general high of approximately $45 and is currently trading at $36.70 as I am writing.
Kusama has managed to hold up relatively well during the recent altcoin mini crash and is relatively strong at current prices. What makes Kusama one of my better positions is not just the amount of strength it is currently showing in the market but also where I managed to buy my position. I have often mentioned that front running the market is a key principle to exercise and execute as it almost always protects you from losses, provided you really are ahead of the pack.
I managed to buy KSM at approximately $9, thinking at that point that I was a little late. Fortunately, that was not the case and despite recent price dumps throughout the altcoin market, I still have a decent amount of gains locked in at current prices.
Further Gains Through Staking
Recently I covered My Cointainer, a staking service provider that happens to offer KSM staking. Staking my KSM on My Cointainer will earn me 11.6% per annum, which is almost 1% per month. It does not sound like much but when you take into account my entry price, the perspective changes. My position is up approximately 400%, which means my staking reward is actually 46.4% per year on my initial investment amount.
This is a very important dynamic to always keep in mind! The same principle applies to lending and works to super compound your returns. If you bought BTC at 8K and deposited your Bitcoin into your BlockFi account, you would be earning 6% per annum. When BTC reaches 16K, you are now effectively earning 12% per year on your initial dollar investment amount.
The Most Important Aspects To Consider When Buying Alts
Looking at my Kusama position, I can see 2 very important aspects that I believe are imperative to succeeding in the altcoin market. They are as follows:
- Always aim to front run the market as early as possible.
- Where possible, consider coins with staking opportunities or lending.
These 2 dynamics are able to protect you, or at best, help offset risk in the face of a bear trend. Without them, you are at the mercy of the market and simply have to wait for prices to recover. Obviously, there are other alts in my portfolio that have not weathered as well but that is where averaging in further on a dip is very beneficial, provided the alt in question truly has value and a future.
These are my own opinions and should not be considered investment advice.