Hello and welcome. If you’re new to crypto and wondering when to move beyond Bitcoin and Ethereum into altcoins, this is the guide I wish I’d had years ago. No hype, no jargon—just a usable framework. Quick reminder: educational, not financial advice. Why start with Bitcoin and Ethereum? Not just size—network effects. Bitcoin is the most secure, decentralized monetary network with massive hash power and thousands of nodes. Ethereum powers the largest smart contract economy with real usage and uptime. You learn self-custody, wallets, signing, and fees on assets unlikely to vanish. Plus, liquidity and on-ramps: in the EU—and in France via PSAN-registered exchanges listed by the AMF—buying BTC and ETH with euros is straightforward, often via same-day SEPA. Spreads on major euro pairs are tiny versus many altcoins, where costs stack up. And regulation: while MiCA rolls out, BTC and ETH have the clearest treatment in Europe. Here’s the reframe: altcoins aren’t a “graduation.” They’re a different risk class. In bear markets, BTC can fall ~75%; many alts drop 85–95% and never recover. Pros keep 60–80% of their crypto in BTC and ETH, using alts for targeted, thesis-driven bets. So what does “moving beyond” actually mean? You don’t chase trends—you choose a category you can explain in a paragraph: Layer-2 scaling, DeFi infrastructure, RWAs, oracles, privacy, AI+crypto, and so on. You scale exposure as your competence grows, not your FOMO. Treat your alt sleeve like a venture basket: a few winners carry the returns; some go to zero. Run a readiness checklist before touching alts: 1) Security. Can you self-custody with a hardware wallet? Seed phrase backed up offline, no screenshots or cloud? Practiced a test transaction? If not, pause. 2) Transactions. Understand fees, slippage, and approvals. Verify token contracts on a block explorer. Know how to revoke approvals. Try a tiny trade on a DEX first. 3) Risk budget. Decide core vs. high beta before buying. A common starting point: 60–80% BTC/ETH, the rest alts. Within alts, keep positions small—1–3% per name—so mistakes are survivable. 4) Thesis and catalyst. If you can’t explain why the token exists, how value accrues, and what you expect in 6–18 months, you have a hunch, not a plan. Write it down. 5) Exit framework. What invalidates your thesis? What events make you scale out—price levels, unlocks, tokenomics changes, or time-based reviews? 6) On-ramps and custody. In France, use PSAN-registered exchanges for fiat. On DEXs, double-check contract addresses, respect liquidity, and be cautious with bridges. Chain and bridge risk are real. Evaluating an altcoin? Classify the token’s role: - Security/staking: secures the network. - Utility/fees: needed to use the protocol. - Governance: votes on parameters. - Revenue-sharing/fee claims: shares protocol value. - Purely speculative: no clear utility. Closer to real usage and value capture is better. Be extra cautious with governance-only tokens without economic rights. Tokenomics matter more than most people think: - Distribution: If insiders/treasury hold over half, expect sell pressure. - Emissions: High inflation dilutes you unless adoption outruns it. - Unlocks: Team/investor cliffs can swamp fundamentals. - Incentives: Are rewards attracting real users or mercenaries who flee when emissions drop? Use docs, whitepapers, analytics sites for supply and unlocks, on-chain dashboards for holder concentration, and forums for early warning signs. Assess adoption and execution: - Are real users signing transactions? - Are developers shipping and audits from reputable firms in place? - Is liquidity deep enough to exit without big slippage? - Are there decent euro pairs on reputable venues, or is it a single illiquid pool? Add a regulatory lens. Under MiCA and national rules, tokens with revenue-sharing can tilt security-like depending on design, affecting listings and custody. Even governance tokens can raise questions if they imply profit expectation. Keep that in mind, especially if you rely on centralized exchanges. Timing and building positions: - Start tiny. Learn how the token behaves; scale only as conviction grows. - Dollar-cost average entries; use limits; respect liquidity. If your order moves the price, you’re too big. - Watch the regime. BTC and ETH usually lead recoveries; alts follow when majors stabilize. Rising BTC dominance and thin liquidity usually mean higher alt risk. A simple implementation plan: - First 30 days: lock down security, set allocation targets, and do research only. Build a watchlist by theme. - Next 30: allocate a 5–10% alt sleeve, spread across 3–5 names with distinct theses. Keep a simple journal: thesis, catalyst, size, risks, exit triggers. Review monthly. - After 90 days: if you’ve stuck to the process and it feels repeatable, consider increasing size. If not, keep it small and keep learning. Common pitfalls: - Chasing narratives without checking unlocks—supply crushes price more often than you think. - Confusing protocol success with token success—great products don’t always accrue value to the token. - Staking into illiquidity—locking right before a drawdown traps you. - Ignoring fees and spreads—on small caps, costs can quietly eat returns. - Expanding custody risk—every new chain, wallet, and bridge is another failure point. Portfolio construction: - Diversify across themes and risk, not just tickers. Pair a couple of infrastructure or L2 bets with a DeFi protocol, maybe an oracle/data layer, and one or two higher-risk experiments. - Keep average position sizes small so any single zero can’t derail the plan. - Protect your core. If the alt sleeve doubles, consider taking profits and rotating into BTC/ETH—or even back to euros—if that fits your broader plan. The mindset shift is the real “graduation.” You’re ready to move beyond BTC and ETH when: - You can self-custody confidently. - You have a written allocation and risk framework. - You can state a one-paragraph thesis with a clear catalyst. - You know exactly what would make you exit. Build alt exposure like a pro: selectively, incrementally, with respect for venture-style risk inside a volatile market. That approach helps you dodge the landmines beginners hit and gives you a shot at upside without blowing up your portfolio. Keep the core strong. Let curiosity drive research. Let your process—not social media timelines—decide when you move beyond BTC and ETH. Thanks for listening. Stay safe, stay curious, and I’ll catch you in the next one.