My portfolio, acquired post-2021 bull run, faces losses. Bitcoin recovers and might surge due to halving, while altcoins underperform. Should I convert altcoins to Bitcoin despite tax implications?
Based on my personal experience, completely switching from altcoins to Bitcoin isn’t necessarily the best strategy. While Bitcoin has shown resilience, especially around halving events, altcoins may offer opportunities that suit different market conditions. In my view, a balanced portfolio that maintains exposure to both can potentially mitigate risks associated with abrupt changes in market dynamics. Tax considerations also complicate a full transition, so it is important to assess not only market potential but also the long-term impact on your overall strategy and tax liabilities. A cautious, measured reallocation could be more prudent than an outright switch.