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Long Term Crypto Trading Strategy
A solid crypto trading strategy can yield huge profits, but it’s easy to get lost chasing 10k returns, overselling, or making panic moves that cost you financially and emotionally.
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I set up the miCripto strategy with cautious optimism, so my goal is sustainable growth (literally speaking) while accepting and enjoying great deals when they happen. This strategy has achieved growth of +1,350% (as of September 29, ’17) and is built around four main pillars:
When I buy coins to hold, I place them in one of 5 investment tiers based on criteria such as market cap and price stability, and trade in and out based on price movements.
When China banned bitcoin, I liquidated 40% of my portfolio which was almost the total of 3rd, 4th and 5th levels and most of my 2nd level. As the market recovered, I looked to start building lower level investments, but as we are in a bubble, things happen that make it difficult to hold a large and diversified portfolio:
The market is moving differently when I started this strategy, coins that have historically shown steady growth are now declining or stagnating as money seems to be flowing into new coins that bring good, short-term returns.
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I am very concerned about investors ignoring good projects while brilliant ICOs are hitting the market. Due to speculation and manipulation, coins entering the top 100 market cap charts lag behind the progress of older projects. This makes it difficult to invest in infrastructure projects.
It is obvious that many coins and tokens are opportunities to exploit the market and investors. The volatility of some of these coins can be good for day traders, but as a long-term investor, that’s what I try to avoid. My investment should be early in a project or coin that shows some level of stability over time.
As an example of what I avoid, I previously listed a questionable trade on Hshare in the miDaily Crypto Update on August 29th, where Hshare went to join the 1bn club, despite entering the market on August 20th. At its peak, it was worth -$43.17 and a few days ago it was $6.02, down +86% month over month. Make no doubt, people are making a lot of money from this price action, and there are people doing it.
Besides Hshare there are many other new entries in the top 150 that I didn’t know about before, and I’m not sure how many will be here in 3-5 years. An endless number of coin pumps and ICOs are disrupting the market, so I am adjusting my strategy.
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I believe in Crypto and the financial/technological revolution we are going through, but I always ask myself the following questions:
My guess is very few, and the winners won’t be the ones with the technical debate. It refers to the following:
There may be new Bitcoin alternatives that are technically better, and there may be a better contract platform than Ethereum, so what? Bitcoin and Ethereum are not going anywhere, and their ecosystems are too big to be exploited.
So my plan is to make sure that when the inevitable bloodshed happens, I’m as well positioned as possible with my investments to come out on the right side.
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I am very interested in money; I feel Cryptos are growing so they have great potential as anyone can use them while the tokens are still economically tested.
A large number of unnecessary projects cover the market and have a large impact on trading. I like to find good projects, invest in the medium and long term and get out of the horizon, but I feel like we are covered with endless new projects, people make money, go out and swing.
Now I will only invest in coins and projects that I believe in and I will not sell anything just because TA says it will go up. I’m putting my money behind those projects that I think will be there in 5 years.
And for each of the above I will have some rules about whether I will invest or not. I will provide information on how I will research and measure these projects in the future.
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I will adjust my high quality investment and trading criteria as follows. Note that stable growth means that the value of the currency increases with the market.
Projects that I believe will be around in 3-5 years, leading the market and showing sustainable growth. It will usually be +1 billion dollars and top 10 by market cap. My goal is to buy from them and collect more coins and tokens. Below I use Bitcoin as an example, the Bitcoin/USD price chart from GDAX. It shows steady growth, but keep in mind that Bitcoin is a basic crypto currency. While the value increases dynamically, in Crypto it is stable.
Projects that I believe have a chance to be a Tier 1 project will typically be $200 million, top 25 cap and showing steady growth. My goal is to hold them until they become Tier 1 projects or if they fail, I trade based on TA to collect more funds and Tier 1 features. Below I used MaidSafeCoin as an example, the MAID/USD exchange rate from Poloniek. It shows the steady growth of Bitcoin. Prices are still volatile, but momentum is high.
These are projects that I believe can grow in stages; it will usually be +50 million dollars, up to 75 per brand and show steady growth. I will trade the growth and follow the stability. Below I use Blocknet as an example, BLOCK / USD price from Bittrek. It shows the steady growth of Bitcoin. Prices are still volatile, but momentum is high.
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These are variable projects that I trade with margin and monitor stability. These will be new projects with high potential or old money changing projects that are selling well. My goal is to trade short-term to accumulate first-tier assets. Below I used Siacoin as an example, SC/USD price chart from Poloniek. It shows volatility and a downward trajectory from an all-time high.
This is a relatively small investment for small projects. It will usually be $25 million and outside the top 75 with a cap tag. I will look to plant early and hang on for a long time. Below I use Patientori as an example, PTOI / USD price from Bittrek. Small market chain and you get value. High growth potential.
Therefore, my main focus is to grow my Tier 1 portfolio, both in terms of projects considered for membership and the amount of coins I have. The purpose of all other levels is to track potential projects on level 1 or trade profitably to collect more coins.
Now it’s important to show patience, which I talked about in my previous Vlog. As the market moves sideways and reacts to more stories about FUD and government regulatory reforms, it remains to be seen how this strategy will play out. Currently my portfolio is heavily weighted to tier 1 coins, half of the market index I’m happy with now. Before trading, choosing the right cryptocurrency trading or exchange platform is important. The exchange is similar to a cryptocurrency exchange. Actively trading cryptocurrencies can lead to huge losses as they are notoriously volatile assets. Before proceeding, you should fully understand which cryptocurrency you choose to buy works.
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Cryptocurrency trading can be a profitable (or expensive) venture in many different ways. This article discusses how to get started, how to create a trading plan, what to look for in a crypto trading platform, and what risks to consider.
Actively trading cryptocurrencies can lead to huge losses as they are notoriously volatile assets. You must first fully understand which cryptocurrency you choose to buy before proceeding. Finding out if crypto trading fits your financial goals can be done by reading guides, researching blockchains, and watching the actions of experienced traders. Never trade more than you can afford to lose, and before you start, consider talking to a qualified financial advisor.
The two main types of traders are long term and short term. Both are not the same. In order to sell at a profit or use cryptocurrencies later, long-term traders buy and hold cryptocurrencies for weeks, months or years. By developing and implementing a trading strategy, short-term trading aims to profit from short-term bitcoin price fluctuations. Long-term trading is less efficient, less stressful and less risky, but still
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Originally posted 2023-11-06 08:20:59.
