Bitcoin Cash Investment Part 2 - Are you getting down at the 3K station? Crypto Strategies
Update: Charts will set you free! Nothing goes up in a straight line without retracing back to recover. So this correction is aligning with my updated charts on Elliott waves and we are still good for now. More details in the paid section.
Our last article on the BCH bull run was very accurate and we touched the $2000 mark as well. While that article talks about looking beyond 2k, this post discusses ideas to take profits and balancing your assets with Crypto.
BTW most of the BCH bull runs happen during the korean day, so watch out for crossing 2k again in the next few hours (It is 4 AM IST and 7:30 AM in Seoul)
I will cover all these aspects in a series of articles with TA in each of them.
- Future Outlook (Part 1)
- Strategy (Part 2)
- Fundamentals (News)
- Charts (Behind Paywall)
"Nobody ever lost money by taking profits"
One of the most difficult choices for a new or experienced crypto investor is to decide when to sell and how much to sell. This is especially true in the current market which is pumping with adrenaline.
To profit or NOT to profit
HODL Man - This is the question that you have to ask yourself now, not when the price is mooning or crashing. Many advice to HODL , come what may - never sell. This is easier said than done especially when you invested by taking a loan etc and the market is down by 50%. However, if you stick to the below strategies this is a very good approach, but you will need strong hands.
Trader Joe - Some are here just for the short term trade, get in and get out with a profit. They believe this is a very risky market or a bubble and to make hay while the #bitcoin (Cash) raises. This is very risky and you need a lot of experience. My friend, RnM, has a wonderful saying - "90% of new traders, lose 90% of their money, in the first 90 days"
Me (and you) - I'm more of an investor than a trader and most of my advice is tailored for that. I like to have a plan for Investing, HODLing and a little bit of a trade while PROTECTING MY CAPITAL
Whichever you are, I hope some of these strategies can help you to learn and become a better crypto investor
"Thou shall not become too greedy or too fearful in crypto"
- PROTECT YOUR CAPITAL (always)
- Never sell 100%
- Spread your eggs
- Investment Percentage (%)
- Cash is king (80:20 rule)
- 70:30 Trader Joe rule
- Rebalance your assets
- Laddering strategy
- Avoid round numbers
- News - To Use or Not to Use
- HODL my way
These will take time to write, so I will add more articles to cover all these strategies in depth, but for now I will explain 3 of these.
PROTECT YOUR CAPITAL
There is nothing more important than preserving your capital. I believe that goal is not to make money, if you are conservative in saving your initial investment, the crypto market will automatically make a lot of money for you.
As a new or inexperienced investor, cryptos lure you into putting too much money at a very high price and then kick you in the @#$% with a sudden crash. So survival is the best strategy, you don't want to make 50-80% loss and get out to NEVER come back into this market. Strong and smart hands are needed for crypto and that comes only with experience.
Make sure you gain the experience of profiting or loss or missing an opportunity, but without a financial disaster. Remember! Remember!
"90% of the investors, lose 90% of their investment in the first 90 days"
Never sell 100%
On Nov 12, BCH stunned the crypto world with its arrival and gave a knockout blow to Bitcoin when it reach $2800 in less than 2 weeks from $400. Guess where I entered BCH? If you read my introduction post you would know that it was around $330.
I promptly sold almost half my BCH holdings around $2000 with a nice profit and put some of the money into bitcoin as it corrected to $5500, but subsequently sold it all at $6500. I wish that I left some 10% or 20% or more in BTC now that it reached $17000+
Similarly, in the mid of october, 25% of my investment was in ETH bought in the low 300s and a little (5%) in Ripple, but looking at the potential of BCH and unable to move FIAT in time, I moved all these holdings into Bitcoin Cash which was a great move, but maybe I should not have sold 100% of them.
I believe we should always try to keep some percentage of our blue chip cryptos (Top 5 by market cap, screw you Litecoin we have BCH now ) for long term because you never know how high the price can go in months or years or in my case - 50 days!
Behind the Paywall
I will explain the "Avoid round numbers" idea behind the paywall as it will help you to book profits. Also included are updated charts from my previous post on BCH reaching 2k and a new chart with Elliott waves as well. Hope you will find value or learning from them. If not, do let me know in twitter if you would like a refund.
Thanks for your kindness and time. Do comment to leave any feedback, it is a great motivation to continue writing.
Disclaimer: Please do your due diligence before investing in cryptos. Trading is much more complicated than investing and my observations are more tailored for the latter with a mid to long term view. In the market you are right until you are wrong. Have a good strategy in place and protect your CAPITAL always.
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