My strategy for Bull and Bear Market

My strategy for Bull and Bear Market

By VNFC | crypto sessions | 19 Nov 2020


hello guys

It seems we are going up with crypto, even the real world is falling apart. Why, I don't know. Some of you could say this is an escape from FIAT, which should suffer a big inflation. But why the investments aren't going to real estates? Because of the next period of recession and the economic activity will be lower and no good incomes are coming? Than why not in gold or diamonds? Because...because maybe a lot of people and even some investments funds are trying to get a golden fish now, of course, untested yet, but anyway, a golden fish.

And this is crypto.

Why?

could be 3 reasons:

- censorship resistant (nobody could take it from you) - of course - we are talking about decentralised coins and exchanges - if you are keeping your money into a CEX (centralised exchange) you could be blocked by using it. So, keep it in your wallet.

- nobody knows yet how big this crypto could grow, so the risk-reward ratio could be very attractive

- less inflative vs FIAT (BTC has nou 18.8 million out from a total of 21 million and this should be reached in decades. ETH would be Proof of Stake and no more coins will be minted, etc). Of course, there are other coins/tokens with bigger inflation, but you should choose them.

So, more or less, new money and new people is coming into crypto town. We can see the BTC is growing and is growing and from the start of this is is almost doubled. From the lower 13 march, is almost 5x!!! And is BTC, not a shitcoin!!

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Despite a lot of pessimistic prognosis for this year, BTC succeeded to overcome many expectations.

Also, DeFi was on fire in August and on ice in September. :)

What about us?

Indeed, what about the ones who are trying to make some crypto portfolio by trading the coins gathered in months?

We can see that our trades could turn bad in periods of BTC turbulence, even if is growing or going down. Either way, the altcoins are hit.

All your gains could be diminished in seconds. You have 2 choises, depending what are you looking for.

The strategy

  • First approach:

the portfolio is related to it's value - like - you want to see the value in $ going up and up.

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BTC Bull market

Then - in this case - when you see this kind of sudden movements of BTC - SELL all your ALTs and stay in BTC

BTC Bear market

Sell all your coins to a stablecoin (USDC, DAI, BUSD, PAX, etc - I don't recommend USDT because of their issues with the law). Otherwise, you could become like this:

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  • The second approach

the goal is having more coins since the beginning (you have now 100 LTC and you'd like to trade to have more)

In this case, your single concern is to make succesful trades vs LTC, even if it's value is 50$ or 90$.

BTC Bull Market

Make your trades in LTC-BTC pair. In bull, usually, LTC will have a decrease, so I sell my LTC to BTC and wait for a lower parity to buy it back. This method could be repeated as long as you can. If, by fortune, LTC will take the decision to never come back and it cannot be bought, we still have BTC. Could buy other coins or stay in BTC.

BTC Bear Market

Use LTC-stablecoin pairs.

This is for 2 reasons:

- LTC will decrease vs BTC

- BTC will decrease vs USD

So, you will have a double gain.

The mechanism is to sell your LTC to USDC, for example and buy it back later.

I used this kind of trading on pNetwork (PNT), so I have now with 30% since the beginning of the month, by making 3 trades.

Look at the chart and see how many opportunities were only in 7 days:

32b19af394257d9e40c4348092f007d3c5e317fd3a14c2833268ad21e4a5566c.png

At the beginning of the week, when BTC was on sideways, it wasn't too important if there are used BTC or stablecoin pairs, BUT when the BTC is having big movements in up, I used it and gain more that 15% in my portfolio since yesterday.

Please be careful and I hope you will be like that man below.

 

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Conclusions:

In Bull Market - trade with BTC pairs

In Bear Market - trade with stable coin pairs

When BTC is sideways, it doesnt matter what pairs do you use.

 

This is not a financial advice. I am just presenting you my strategy.

 

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VNFC
VNFC

we wait and we shall see what the world is bringing to us tomorrow


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