IDEAS ON PLAYING THE BTC FIELD TO WIN
Caveat: Most of these strategies are for 'day traders' who intend to maximise their profits in the short run because hodling most cryptos would pay off in the long run anyway.
I always begin discussions on btc by saying, "It's always a good time to buy btc." and then someone invariably reminds me that volatility is a synonym for btc. Of course, that often results in a raucorous bout of laughter on my part.
To the uninitiated, it may seem that there might indeed be times to steer clear off the btc markets as may be expected in times when the prices are at incredulous All-Time-Highs or All-Time-Lows as has been the case recently, haha.
A more cautious investor would perhaps prefer to attempt to use technical analysis in forecasting possible tops and bottoms before taking his positions but technical analysis is not the subject of this post. I mean, technical aalysis is great for the most part BUT if you've got a good gut feeling and astute 'crypto-savvy' (that may just be one crypto word I just invented, who knows?) that may provide even better returns, at least in the short/medium term in any case.
So, to the 'meat':
The following are the result of my personal investment strategies and should not be misconstrued as investment advice in any way of course. The onus is on the reader to do their own due diligence and no investment is guaranteed. Since that's out of the way, let's proceed with some ideas for playing the BTC field to win:
- Begin with a plan
As basic as this sounds, most investors and would-be investors in the cryptospace often lack a plan. A good man somewhere once quipped, "A failure to plan is a plan to fail"...that good man was darn right! Always have a plan. Your plan may be as comprehensive as you feel like or as simplistic as simply identifying where your entry point is going to be and where you intend to exit a market.
- Stick to your plan
Well, for the most part, hehe. It goes without saying, if your plan is REALLY going down south you'd definitely need to course-correct. This should be considered both in cases where the market is supposedly in your favour and when it's seemingly against you. If you plan to exit a market at Xsats then don't linger just because it seems to be running to the moon. The only exception to this rule is when a bullish trend is confirmed and even then, I'd normally book portions of profit at my predetermined exit price while leaving the remainder for free range price movements. That way, whatever direction the market moves doesn't bother me i.e my remaining positions are essentially risk free.
To be continued in subsequent series...
P.S: Drop your comments, feedback of any sort would be appreciated. Also, while we're at it let's not forget to upvote this post. Cheers!