5 Altcoins to buy in the Bull Run, according to Crypto Investor
- Ken Mack believes blockchain and crypto will pave the way for the Fourth Industrial Revolution.
- He recommends investors start learning more, adding that it will be a rabbit hole worth destroying.
- He is currently charting the potential prices for the next bull run and sharing his strategy.
Ken Mack had a career in buying and selling businesses before becoming a crypto investor in 2017, during a bull run that saw bitcoin and other altcoins reach new heights.
Last year, after seeing an increase in money printing, especially the US dollar, he started investing more in crypto. Bulls like him have recently warmed to cryptos like bitcoin in part because of its capped supply, which contrasts with the plentiful amounts of central bank stimulus being created.
“Today’s millionaires are tomorrow’s middle class,” Mack said. “With the insane money printing going on, [crypto] is the best way for ordinary people to create exponential levels of wealth, and possibly generational wealth, if things are done the right way. “
The combination of inflation – which many experts including
officials have fixed as a transient – with the wave of baby boomer retirements, that means money could quickly move into new areas, notably crypto. To be exact, an estimate 68 trillion dollars will pass from one generation to the next within 25 years, according to the research firm Cerulli partners.
But these aren’t the only reasons Mack is bullish on crypto or evangelizing the asset class. He co-hosts a YouTube show along with another crypto influencer, Coach JV, focused on helping others understand the change in wealth and benefit from the transition.
They both believe that blockchain technology and crypto will be among the main technological drivers of the Fourth Industrial Revolution, a transition the World Economic Forums are calling. fusion of technologies that flatten the physical and digital worlds; Think of portable devices that digitize your workouts, voice-activated virtual assistants and, yes, paperless transactions stored on blockchains, as examples.
These beliefs prompted Mack to get involved in blockchain development. He is an advisor at Node capital, a venture capital fund focused on early blockchain projects, and it has a seven-digit crypto portfolio, according to screenshots of its Blockfolio and Nexo accounts seen by Insider.
Previously, he had a career in private mergers and acquisitions. He said that at age 21, he started buying businesses, mainly manufacturing companies such as ECP, a Brazilian LED manufacturer. In 2017, he and his team acquired a third division football club in Spain without any payment. He used what are known as leveraged buyouts, which use the assets of the acquired business as collateral. He continues to use this strategy to acquire cash assets today.
Right now, he is focused on whether to trade what he plans to be an upcoming crypto bull run in the last quarter of 2021.
But he insists on the need to be diversified: Even if you invest in 10 different cryptos, you still need to own less volatile assets, like real estate and commodities, and have secure income streams.
“Crypto trading is very risky. Personally, I have lost a lot of money in the past,” Mack said. “Time in the market is worth more than money in the market. And the best strategy is to just buy and hold.”
One of his biggest mistakes was when he traded leverage ether and forgot to lower his stop loss. He told Insider he woke up the next morning and found that a six-figure amount had been wiped from his account.
“These little mistakes can cost people their savings,” Mack said. “Fortunately, I only trade a very small part of my wallet.”
Crypto Market Projections
The crypto market experiences big swings and has historically operated on a four-year cycle dictated by bitcoin and its halving cycles. The latest halving took place in March 2020, followed by a running of the bulls that eased in the first quarter of this year.
Mack notes that September is generally a flat month in terms of price movements, something that is playing out right now.
“My technical analysis and chain indicators show that we are about to enter a phase two bull run,” Mack said. “I think it’s going to last about three months. Unfortunately, most people will end up buying the high and selling the low. This is historically what has happened.”
Despite the recent announcement of China’s crypto ban, Mack isn’t worried because he’s seen this movie before.
“If we look historically, how many times [China] banned crypto, I think the market is now getting to the point where it’s not as responsive as it was when they released this news, ”Mack said.
If the US debt ceiling is not raised on Oct. 18, an overvalued stock market could pull back if the Fed signals it will slow quantitative easing. These could lead to the “mother of all disasters” and cut the bull short, he warns.
Otherwise, he expects some altcoins to hit all-time highs in December or January, when the price of bitcoin could hit the lowest six digits (it hit a record above $ 64,000 in April). But he adds that if we repeat historical patterns it will be followed by a massive sell-off, sending the crypto into a vein.
Bullish race strategy
For this reason, Mack plans to hold all of his altcoin positions by the end of the year, as they lose 90% of their value in bear markets. And it doesn’t plan to buy back until late 2022 or early 2023. It will only maintain a 25% position in bitcoin.
He told Insider that he will sell at regular intervals starting in November and quit altogether if bitcoin hits $ 75,000 to $ 85,000.
Some estimates suggest that bitcoin could reach up to $ 200,000 by the end of 2021. But Mack says the only thing that could lead him to these ridiculous highs is for the United States to approve a bitcoin ETF.
For now, its signal for the uptrend is when bitcoin breaks through the resistance point of $ 52,000, Mack said. Next, the Fibonacci extension level, which traders use to determine the next price wave after a pullback, is $ 88,000.
Mack also warns that the crypto market is heavily manipulated by whales, or those who hold millions of dollars in bitcoin. So it also uses on-chain data from websites like Whale map and Glass Node, which track the prices that big players flock to the exchanges.
Altcoin exit strategy
He is extremely optimistic about ether (ETH) because all decentralized finance is practically built on its blockchain, requiring the transaction of the coin. Its recent EIP-1559 upgrade, which was aimed at lowering transaction costs, also made it deflationary. He said about 50% of his personal wallet is invested in ether, with the second largest being bitcoin.
He predicts a conservative high of $ 5,000 at the end of the year for Ether and plans to fully exist if it hits $ 8,000.
Elrond (ELGD) is another of his favorite cryptos because it’s highly scalable and fast, with great use cases for the business.
He compares it to Solana but since his market cap is lower, he still has 10x potential. He says he will start to expand out of Elrond if he hits $ 400 and will fully exit if he hits $ 1,000.
Peas (DOT) is another altcoin that Mack is bullish on. He says it hasn’t been successful, but it is its most stable crypto in terms of growth. He also earned 12% passive income on Kraken, where he wagered it.
“In terms of Polkadot’s potential, once they deploy the parachains, there’s a good chance we could look at a polkadot of $ 70 to $ 100,” Mack said. “It’s a very solid and very stable project. And it hasn’t gotten a lot of press.”
Due to its scalability, it potentially has exponential growth compared to its competition. He plans to exit 25% of his position in DOT at around $ 75, with a full exit of $ 95.
He also holds piece of money (BNB) and considers it to be one of the best exchanges in the world. It had already hit all-time highs of $ 672 in May. He thinks he can easily reach a new high of $ 1,000 in this race.
He plans to exit 25% of his BNB position at its last all-time high, an additional 25% at around $ 750 and a full exit at $ 950.
Finally, a surprise choice is pancake swap (CAKE). He told Insider it was one of his biggest earnings. His returns can range from 74% to about 77% APY, without enclosing it in defined terms. This is the third largest holding in its portfolio.
“CAKE is also a utility token for the platform, which is one of the most widely used decentralized exchanges right now,” Mack said.
He plans to cut CAKE to around $ 37 and fully exit if he hits his previous all-time high of around $ 43.