Although the crypto market is quite volatile and unpredictable, there are a few things to know in order to always win whatever the market conditions:
- Keep always stablecoins in your portfolio, for instance at least 20% to 30%, so that you can practice DCA (Dollar Cost Averaging) when needed.
- Bet the biggest part of your portfolio on coins rather than tokens. 90% of the cryptos are indeed tokens (and not coins), i.e., they do not have their own blockchain. The real coins (e.g., BTC, ETH, BNB, SOL, AVAX, EGLD, XTZ...) have a lower volatility than the tokens built on their blockchains. If the coins pump, some tokens will pump faster. But if the coins dump, the tokens will dump faster too. Therefore, in bearish market conditions, you may lose a lot with tokens (e.g., -20% per day) whereas with coins the loss will be limited. Keep the tokens below 30% of your total asset value.
- Do not trade all the time, be patient and proceed step by step. For instance:
- Day 1: buy $100 of coin A.
- Day 2: if coin A has increased, you may already resell it for USD if you want a small gain. If it has decreased, you may buy again $100 and buy again the following days until the average value exceeds the initial investment in USD. Another strategy is to hodl whatever happens, but in that case make sure that you buy only small amounts each day and increase the invested amount only when it really hits a bottom.
- If you decide to hodl some of the coins you bought, make your coins work by staking or farming them. There are mutiple DeFi protocols, e.g.:
- Beefy Finance on AVAX, BSC or Fantom blockchain.
- Thorchain allowing to swap and farm well-known coins such as BTC, ETH and BNB.
- Terra (LUNA) Anchor Protocol allowing to earn 19.5% APR on the UST
- Tezos liquidity baking allowing to participate in the XTZ-BTC liquidity pool with 60%+ APY rewards.
- Elrond Maiar Exchange allowing to get metabonding rewards additionally to EGLD staking or LKMEX farming.
Below a few referral links to earn more cryptos...
