Friday afternoon saw a significant downward shift in the value of Ethereum Classic (ETC). I guess it should have been expected because most of the currencies I follow were pretty close to the highest I have seen them be since I started trading. So short term capacity had probably pretty much been reached. The most frustrating thing for me was much of my Crypto was close to releasing profit, but just didn’t seem able to cross the line. This was the single most important indicator that short-term growth had been stunted
I had bought some ETC at £5.45 and after losing a bit on the margin (as is normal) I was waiting for some movement and it just held for what seemed like an eternity and then it started falling. I rechecked some predictions and they had all shifted to predict a large high single figure percentage fall. I didn’t fancy an up to 10% fall especially after having such a triumphant week in which I had created my first real sustained profit. Read the post here.
My fund was under siege. I have written previously how one bad decision can undo a whole raft of good decisions and with a sense of deja-vu I thought Oh no here we go again.
FUD is crippling and I knew I had to act. I moved when the price had fallen to £5.40 (I would have moved sooner, but I wanted to be sure). I shifted my funds to USDC so they would at least hold their value and waited.
Sure enough the price continued to fall off dramatically. Within an hour it was £5.20 and now I started watching even more closely. A few minutes later I traded the USDC in and bought back some ETC.
So what did I achieve?
I have still yet to release any profit from the ETC, but with this simple act I grew the amount of ETC I was holding by 1.4%. The long term movement is always going to be upwards and now I have more of the currency to leverage than I had before. I used the principles I previously described in my post on It’s Not All About the Money.
My purpose in writing today is to show that even when markets are failing good leveraging can be used to increase the QUANTITY of crypto holdings which can only benefit in the end.
So in the future if your currency is falling take advantage and grow your portfolio. Remember there are two main ways to increase your portfolio.
- Increase its monetary value
- Increase the amount of Crypto held
So to conclude ETC was under a price assault and I managed to orchestrate an effective counter attack that leveraged an increase in my holdings. It may seem like I am trying to spin a bad decision and you can interpret that as you wish, but decisive action at least stalled the losses I was facing and now I have 1.4% more ETC than I had which will increase my profitability when it bouncing back.