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What's your investment strategy when it comes to Crypto ?

  • 17-01-2021 1:47am
    #1
    Registered Users Posts: 4,036 ✭✭✭ maninasia


    What's worked well for me ultimately (and this is a snapshot in time of course )has been to place the majority of my investment in the big two, BTC and ETH, and DCA in over a period of years. Mostly ETH actually. But I only started doing that after one year of screwing around with dozens of smaller projects.

    So patience and time to wait for the gains is key, we know that already.

    Initially I chased a lot of moonshots , while some of them have panned out very well e..g AAVE, Synthetix I actually lost money on at least fifteen projects.

    When I checked my portfolio overtime and compared it to just keeping everything in bitcoon instead of trading I'm currently at 1.5 times my investment in bitcoin (due to DeFi investments really as well as timing my ETH.trades ).
    The highest I ever got as 2 times my btc investment.

    There have been many occasions during bitcoin strength
    with less than my BTC investment .
    On those times I shake my head and realise I could have setup an automated purchase and check in once a quarter and save me a lot of anxiety (but none of the highs too).

    Anyway the major lesson is that DCA into bitcoin and etheteum is really all you need.to do to get massive returns. I've actually stopped investing in crypto now for a year now and just letting it ride.

    Perhaps a better strategy would be to continue to DCA into ETH and BTC?


Comments

  • Registered Users Posts: 4,036 ✭✭✭ maninasia


    Apart from the DCA angle, do many of you trade between ETH/BTC pair? I think this could be a fairly simple way to trade a few times a year. Now ETH/BTC has been recovering and I'm thinking to swing back into BTC more if it hits 0.035.


  • Registered Users Posts: 406 ✭✭ dirk_dangler


    Get tokens that have Staking
    Use the staking rewards to buy new low MC tokens , in other word free crypto, get a pump and then put profits back into staking, repeat cycle.
    Take zero profit, iron hands, will repeat until have enough to cash out a life changing sum of money.
    Target is 2025 before i take any profit.


  • Registered Users Posts: 2,227 ✭✭✭ RoboRat


    I have a spreadsheet and I have the number of tokens and buy price listed. Most of my investment was in BTC and ETH - about 45% ETH / 30% BTC / 25% Alts.

    My alt portfolio included XLM, IOTA, ADA, VEC, ZIL, DOT, THETA, and XRP. These are projects I am interested in, or I feel have some financial gains.

    My strategy is to increase my holdings without increasing my initial investment, which I have recouped already. I set a sell order based on a point where I feel I have made a good profit - generally, I split my holdings into predefined gain levels and sell portions.

    For example, if I bought 100 DOT for €2 e/a I would set the first point at €4, the second point at €10, the third point at €18 and the fourth point at €34. If I sell 25 x DOT @ €4 that's €100 out of a €200 investment, if I then sell 25 @ €10, that's a further €250 so I'm €150 up with 50% of my holdings. If they go higher, I'm quids in, but if they fall, I can buy back at a lower price or hold onto the money and reinvest into other coins. Either way, I have recouped my investment so I am not out of pocket.

    I believe in crypto but I also understand market volatility and that everything has a peak. My aim is to make some money, support some projects and when we shift to crypto on a mainstream level, I already have some established assets.

    Right now, about 60% of my investments have been cashed in and I will hold until there is a dip and buy back in. If there is no dip, I'm about 4x up on my initial investment and I will happily take that. I'm also still 40% in so I will take the gains too.

    I don't believe in procrastinating about selling assets in the hopes of them rocketing. If they rocket and people get filthy rich, fair play to them and I will be a bit jealous, but I also understand that this is a double-edged sword and it may also tumble. Nobody actually knows.

    I think you need to decide what you want from this and strategise accordingly. If you're in it for the long term, then stick to your guns and hodl. If you're looking at investment and returns, then that's a different approach, and gains are gains. Bottom line, if you're investing you need to have an exit strategy.

    Whatever your strategy, the key is to do your due diligence and understand what you are investing in. Don't just chuck cash at something because it looks promising or some shill forecast it to be the next big thing... often these guys have large bags of the coins they're shilling, or they're paid to promote them, and they're waiting to offload at the right price and leave you holding the ****.

    If you're investing in altcoins, look at 24-hour/ 7-day volume and what the demand is like. There is no point in having a ton of coins but when it comes to shifting them, there are no buyers!

    Anyhow that's my 2 satoshis on the matter, each to their own and let's hope we all make some money :-)


  • Moderators, Category Moderators, Motoring & Transport Moderators, Regional East Moderators Posts: 59,698 CMod ✭✭✭✭ unkel


    RoboRat wrote: »
    Anyhow that's my 2 satoshis on the matter

    :D

    "Wind is Ireland's oil" - An Taoiseach, 25/05/2022



  • Registered Users Posts: 4,036 ✭✭✭ maninasia


    RoboRat wrote: »
    I have a spreadsheet and I have the number of tokens and buy price listed. Most of my investment was in BTC and ETH - about 45% ETH / 30% BTC / 25% Alts.

    My alt portfolio included XLM, IOTA, ADA, VEC, ZIL, DOT, THETA, and XRP. These are projects I am interested in, or I feel have some financial gains.

    My strategy is to increase my holdings without increasing my initial investment, which I have recouped already. I set a sell order based on a point where I feel I have made a good profit - generally, I split my holdings into predefined gain levels and sell portions.

    For example, if I bought 100 DOT for €2 e/a I would set the first point at €4, the second point at €10, the third point at €18 and the fourth point at €34. If I sell 25 x DOT @ €4 that's €100 out of a €200 investment, if I then sell 25 @ €10, that's a further €250 so I'm €150 up with 50% of my holdings. If they go higher, I'm quids in, but if they fall, I can buy back at a lower price or hold onto the money and reinvest into other coins. Either way, I have recouped my investment so I am not out of pocket.

    I believe in crypto but I also understand market volatility and that everything has a peak. My aim is to make some money, support some projects and when we shift to crypto on a mainstream level, I already have some established assets.

    Right now, about 60% of my investments have been cashed in and I will hold until there is a dip and buy back in. If there is no dip, I'm about 4x up on my initial investment and I will happily take that. I'm also still 40% in so I will take the gains too.

    I don't believe in procrastinating about selling assets in the hopes of them rocketing. If they rocket and people get filthy rich, fair play to them and I will be a bit jealous, but I also understand that this is a double-edged sword and it may also tumble. Nobody actually knows.

    I think you need to decide what you want from this and strategise accordingly. If you're in it for the long term, then stick to your guns and hodl. If you're looking at investment and returns, then that's a different approach, and gains are gains. Bottom line, if you're investing you need to have an exit strategy.

    Whatever your strategy, the key is to do your due diligence and understand what you are investing in. Don't just chuck cash at something because it looks promising or some shill forecast it to be the next big thing... often these guys have large bags of the coins they're shilling, or they're paid to promote them, and they're waiting to offload at the right price and leave you holding the ****.

    If you're investing in altcoins, look at 24-hour/ 7-day volume and what the demand is like. There is no point in having a ton of coins but when it comes to shifting them, there are no buyers!

    Anyhow that's my 2 satoshis on the matter, each to their own and let's hope we all make some money :-)

    Well thought out and thanks for explaining . Personally it's a bit too much work for me even though I believe it is a good strategy you follow.

    I'm sitting on major theoretical gains, I'm having a hard time pulling the trigger and selling some into cash because I'm basically greedy and afraid of missing out.
    I really really should sell some down into cash .I've been all coins all the way through the bear, DCAing and now the bull. It was tough during the bear when I was in negative for a long time but I reaped the rewards when the bull arrived.

    Now common sense says I should sell some to cash. I've never once sold taken cash out if my crypto holdings back to my bank account. Crypto is my biggest holding in terms of assets though. Which is kind of crazy. I don't have anybody around me to talk about this because either they will think I am boasting or not know what the hell I'm talking about or they will tell me just sell it all now.

    I want to get rich from crypto so not all the way there yet. I also want to buy a house from it while still leaving me plenty to play with because I think crypto is still like Amazon and Facebook , 10-15, years ago, it's just getting started. I'm mostly in crypto for the money (I realised that as I lose interest in most projects that lost me money )and when it was in a bear, but I'm also very keen on decentralised finance and it allowing us to skip the banks and local credit systems . That's my main interest outside of the $$$.

    Anyway common sense is thst I should move a part into stable coins now to balance the risk a bit.


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  • Registered Users Posts: 21,872 ✭✭✭✭ endacl


    Hodl, mostly...


  • Registered Users Posts: 4,036 ✭✭✭ maninasia


    Sold half into stablecoins, so I can lock in some gains if things go pearshaped for a while.


  • Registered Users Posts: 2,227 ✭✭✭ RoboRat


    maninasia wrote: »
    Well thought out and thanks for explaining . Personally it's a bit too much work for me even though I believe it is a good strategy you follow.

    I'm sitting on major theoretical gains, I'm having a hard time pulling the trigger and selling some into cash because I'm basically greedy and afraid of missing out.
    I really really should sell some down into cash .I've been all coins all the way through the bear, DCAing and now the bull. It was tough during the bear when I was in negative for a long time but I reaped the rewards when the bull arrived.

    Now common sense says I should sell some to cash. I've never once sold taken cash out if my crypto holdings back to my bank account. Crypto is my biggest holding in terms of assets though. Which is kind of crazy. I don't have anybody around me to talk about this because either they will think I am boasting or not know what the hell I'm talking about or they will tell me just sell it all now.

    I want to get rich from crypto so not all the way there yet. I also want to buy a house from it while still leaving me plenty to play with because I think crypto is still like Amazon and Facebook , 10-15, years ago, it's just getting started. I'm mostly in crypto for the money (I realised that as I lose interest in most projects that lost me money )and when it was in a bear, but I'm also very keen on decentralised finance and it allowing us to skip the banks and local credit systems . That's my main interest outside of the $$$.

    Anyway common sense is thst I should move a part into stable coins now to balance the risk a bit.

    The easy question is which are you more afraid of... missing out or losing what you have? A simple forecast scenario - which is the most likely and is the thought of winning greater than the thought of losing?

    (1) Crypto moons and your dream comes true
    (2) You make some money, but not what you dreamed you would make
    (3) Your investment goes down and in hindsight, you should have cashed out earlier
    (4) Your investment is worth nothing and you wish you had cashed out

    If your more concerned about missing out, then hodl but you have to be OK with losing some, or all, of what you have. You have to be realistic, however, you talk about being in it for the money primarily which is fine but any investor will tell you that you need to have a point to take the gains.

    It seems your mindset is that the market is only going up, even though you talk about the bear market you are only focusing on the final point where you make a sh1t ton of money and live happily ever after. That's like chasing a rainbow in my opinion... have you put a number on paper of where you need your assets to get to? If you have, then have you put a number on paper of how much you need to invest to get there? It's good to put down what you have, the current value and where you need it to get to - often this can offer some clarity and bring a dose of realism. You need to have limits and approach this with your head, and not your heart if you are in this for financial gain.

    Think of it like buying a dilapidated house, on paper, it looks like a great investment as you got it for a snip of what other houses are going for in the area. You dive in and start doing it up. You are spending money on various projects but you haven't set a budget nor are you tracking the costs. You're just spending money because of the potential gains you can make. Each project unearths another problem and the market is starting to go sideways... you push on. the market will pick up and you will finish the project. At what point do you look at what you have spent versus the market value? At what point has the overall cost of the house overtaken the market value? I only say this because this happened to me and it's the very reason I use strategy. It's a different scenario to crypto, but the fundamental lessons remain the same. In hindsight, I could have done cosmetic work and sold the house a year or 2 later and made a tidy profit. I didn't and kept presuming the market was only going one way and that every euro I spent would be worth multiples when it came to sell. That didn't happen and I lost a lot of money, not to mention the time I spent doing the jobs myself.

    I also think that only having crypto assets is a bad investment strategy. You need market diversity to counterbalance your potential losses. Precious metals are a good and stable investment and generally rise when traditional markets fall. There is nothing to stop you taking some money out and putting it into a medium or high-risk fund. It would add diversity and ensure that all your eggs aren't in one basket. Some of the returns on those managed funds are pretty good too.

    My advice, take some time to work out what is your end game, how you will get there and what stands in your way of getting there. Then decide on a strategy that best suits your path.


  • Registered Users Posts: 4,036 ✭✭✭ maninasia


    RoboRat wrote: »
    The easy question is which are you more afraid of... missing out or losing what you have? A simple forecast scenario - which is the most likely and is the thought of winning greater than the thought of losing?

    (1) Crypto moons and your dream comes true
    (2) You make some money, but not what you dreamed you would make
    (3) Your investment goes down and in hindsight, you should have cashed out earlier
    (4) Your investment is worth nothing and you wish you had cashed out

    If your more concerned about missing out, then hodl but you have to be OK with losing some, or all, of what you have. You have to be realistic, however, you talk about being in it for the money primarily which is fine but any investor will tell you that you need to have a point to take the gains.

    It seems your mindset is that the market is only going up, even though you talk about the bear market you are only focusing on the final point where you make a sh1t ton of money and live happily ever after. That's like chasing a rainbow in my opinion... have you put a number on paper of where you need your assets to get to? If you have, then have you put a number on paper of how much you need to invest to get there? It's good to put down what you have, the current value and where you need it to get to - often this can offer some clarity and bring a dose of realism. You need to have limits and approach this with your head, and not your heart if you are in this for financial gain.

    Think of it like buying a dilapidated house, on paper, it looks like a great investment as you got it for a snip of what other houses are going for in the area. You dive in and start doing it up. You are spending money on various projects but you haven't set a budget nor are you tracking the costs. You're just spending money because of the potential gains you can make. Each project unearths another problem and the market is starting to go sideways... you push on. the market will pick up and you will finish the project. At what point do you look at what you have spent versus the market value? At what point has the overall cost of the house overtaken the market value? I only say this because this happened to me and it's the very reason I use strategy. It's a different scenario to crypto, but the fundamental lessons remain the same. In hindsight, I could have done cosmetic work and sold the house a year or 2 later and made a tidy profit. I didn't and kept presuming the market was only going one way and that every euro I spent would be worth multiples when it came to sell. That didn't happen and I lost a lot of money, not to mention the time I spent doing the jobs myself.

    I also think that only having crypto assets is a bad investment strategy. You need market diversity to counterbalance your potential losses. Precious metals are a good and stable investment and generally rise when traditional markets fall. There is nothing to stop you taking some money out and putting it into a medium or high-risk fund. It would add diversity and ensure that all your eggs aren't in one basket. Some of the returns on those managed funds are pretty good too.

    My advice, take some time to work out what is your end game, how you will get there and what stands in your way of getting there. Then decide on a strategy that best suits your path.

    Some sage advice there.
    I split it roughly 50:50 todaty crypto:cash (stable coins not USDT) because psychologically I couldnt handle missing this chance to lock in some gains after three years, at least 1.5 years of which was hell.
    At the same time I'm a bit addicted to the buzz of the crypto game.

    I have fair bit of cash on the sidelines for stock and such,z and do have some US stocks although they look frothy , if I was in Ireland I'd probably invest in property cos of rent cost and supply vs demand there .

    Anyway I'm not complaining , interesting story about the house !

    I haven't done the final psychological move of converting back to fiat . I should really to avoid more risk . It's a bit tricky to convert though, probably the worst thing about crypto. Fairly easy to buy in but not so easy to cash out.


  • Registered Users Posts: 2,227 ✭✭✭ RoboRat


    maninasia wrote: »
    Some sage advice there.
    I split it roughly 50:50 todaty crypto:cash (stable coins not USDT) because psychologically I couldnt handle missing this chance to lock in some gains after three years, at least 1.5 years of which was hell.
    At the same time I'm a bit addicted to the buzz of the crypto game.

    I have fair bit of cash on the sidelines for stock and such,z and do have some US stocks although they look frothy , if I was in Ireland I'd probably invest in property cos of rent cost and supply vs demand there .

    Anyway I'm not complaining , interesting story about the house !

    I haven't done the final psychological move of converting back to fiat . I should really to avoid more risk . It's a bit tricky to convert though, probably the worst thing about crypto. Fairly easy to buy in but not so easy to cash out.

    It's fairly easy to cash out to fiat, I have cashed to euro and kept half on the exchange - I'm just not completely trusting of stable coins yet. I will buy when the price is right... if it never gets there, or I will pull it all out and invest in a fund. I kept half on the exchange as I have buy orders and I don't want to miss out.

    The other half I have transferred to my Paypal account and will leave it there. It didn't cost much to transfer to Paypal from coinbase - I actually don't think it cost anything. If the price is right, I will go back in and buy again.

    I prefer to keep it as euro, that's a personal choice but it also causes some loss if I am buying alt coins that don't have a euro trading pair.

    I also took out my initial investment, at least this way, I have never lost money. I may lose out on potential gains but I am happy with this decision. I'm about 5x up on my initial outlay so if there is a dip, I have 4x the amount I originally invested to buy coins. The aim is to grow my original holdings by 3x at least - it would be nice to have 3 times the amount with no danger of losing my original investment!


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  • Registered Users Posts: 15,105 ✭✭✭✭ Dohnjoe


    Extreme patience and discipline is really my strat.

    Buying: My strategy is to force myself to buy in set stages at set prices when it's really in the gutter, no one is talking about it, people are claiming it's "dead", e.g. December 2018, and December 2019. The only exception to this are small amounts into alt crazes or moon shots that don't really follow the market trend, these are typically small amounts.

    Selling: Likewise I force myself to sell (portions at set prices) when it goes parabolic, e.g. end 2017, and current. I let maths take the decisions for me, as I am rubbish with emotional or knee-jerk decisions.

    I don't touch buying/selling for profit-taking, too casino red/black for me. Have been burnt a few times in the past. Anyone I know who regularly tries it does not have anywhere near the same size stacks as the patient buy and hold investors.

    Have learnt a lot of lessons along the way, and definitely have picked up too many alts, but so far it has worked very well. I like to keep any buys at around 75% minimum of BTC + Eth. Allowing the rest to go into alts/moonshots. For newer users I'd say keep the BTC/Eth to alt ratio even higher (80% or 90%)


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