Your personal crypto investing strategy

Hey everyone,

As the wild ride of the crypto market keeps on rocking, both old-timers and newbies should be asking themselves - how often should you really be trading crypto?  There are three main approaches: 

• Buy and hold…forever 💎🙌

• Trading the cycles: Investing over ~1-2 year timeframes 🌊 (our preferred approach)

• Short term trading: Investing over month or even daily timeframes 🔥

Context, context, context…We’re in a long term bull market

Source: BiTBO

Bitcoin is in a very long term bull market…15 years of gains.  The chart above (Bitcoin price expressed as a power law) shows this long term bull market. The other thing it shows is how durable this trend is, indicating that it’s likely to continue over time. It’s a good bet that this long term bull market will continue. 

What does this longer term bull market mean for our crypto investing strategies?

Jumping into a strong, long-term bull market like this one can make almost anyone look like an investing wizard. Mess up? No sweat! Chances are, the price will eventually bounce back and smooth over any mistakes made.

The only major mistake someone can make is missing the longer term trend entirely.

This longer term bull market opens a range of approaches to investors, with some being easier than others:

1. Buy and Hold...Forever: 

   (Returns: Good…Odds of success: High…Skill: Low…Time required: Low)

Yep, the lowest-risk, lowest-maintenance option? It's a winner. Seriously, it's a no-brainer and it's very likely to continue into the future. All you gotta do is sit tight and wait it out (which, let's be real, can be tougher than it sounds).

2. Trading the cycles

   (Returns: Very Good…Odds of success: Medium…Skill: Medium…Time required: Medium)

Alright, so you want those bigger returns, right? Well, they're on the table, but here's the deal: more returns often mean more chances to screw up and miss the longer term bull market. The trick? Riding durable longer-term cycles in macro and crypto to sniff out when to buy and sell. Also you’re going to need a strong stomach because most of the time it’s going to feel like you want to puke when buying low and the fomo will kick in when selling high.

3. Short-Term Trading

   (Returns: Extremely Good…Odds of success: Very low…Skill: Very high…Time required: Very high)

Buckle up for this one—it's like climbing Mount Everest. But it’s also the strategy with the best returns.  I’ll be honest it’s nearly impossible.  And keeping emotional discipline over these time frames is extremely difficult.  Most people end up getting chopped up.  Buying highs and selling lows. This also has the largest chance of missing out on the longer term bull market if you make a mistake.

Summing it up

There are a range of different time frames that you can invest over, all of them can work if executed properly. Honestly the biggest risk is just over trading over short time frames and missing out on the longer term bull market because of it.

When deciding what approach you should personally use, it’s important to consider your own strengths, weaknesses, and the amount of time you can put into it. And its also important to make sure you choose a strategy that has already proven to work over time.

Best of luck!

Justin

If you have any thoughts, feedback, or topics you’d like us to cover - feel free to respond to this email.

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Disclaimer: The Blockchain Breakthrough is not financial advice. Please do your own research.