BitCoin and Ethereum are running out of control. Yesterday I cashed out a nice healthy profit on my Yearn Finance holdings and all seems to be great.

But the Crypto market is overheating and, as in nature, after a period of prolonged heat a storm always follows. The last time this happened was in August last year when literally as it rolled into September the climate changed and over the space of five agonising days my portfolio shrank by more than 30% from its highs, or down to 78% of its original investment value. OMG, TEZOs and COSMOS in particular have never recovered even if they have rallied a bit in recent weeks.

That traumatic loss still affects me today and while I am still using the strategies I discussed throughout the summer I have become more conservative and am happier with a greater than bank yield.

In September I chose to hodl my way out of it, but that took two months and in the meantime I sold some BitCoin that I had acquired for about £7500 when it started moving upwards (obviously I should have hodled for twice as long as I did and would have made 400% on it. As I have previously stated I decided to take profit early, maybe as a consequence of FUD or possibly as a determination to stablise my portfolio. A failure to do this was the fundamental mistake I made in August.

I don't know when it will hit but a massive correction is on its way.

So this time I am determined to not make the same mistakes. In the last few days I have bought some BitCoin but yesterday I decided to dump it all for a reasonable profit so when the storm comes it will not take me down again. I have not only done this with BItCoin but am steadily doing it with my other held currencies

How have I done this?

Using a key strategy, which has now become my main strategy I pair off all of my crypto assets with DAI (and anyone who follows me knows how I love my DAI <3 )

It is beautiful in its simplicity:

Let me explain:

I convert a round amount of DAI to a given currency (it is not actually possible but I get as close as I can). Say I target 200 DAI for BitCoin.

What I end up with is something like 199.95349 DAI => 0.0000xx BitCoin (forgive me for being a bit lazy here but the amount of held BitCoin isn't really that relevant - the focus is on the DAI holdings)

Next I wait and when the re-conversion rate exceeds 200 I buy the DAI back. Last month in a single transaction I made 9% doing this and have made smaller incremental profits on the way, usually in the range of 1% - 4% per trade

I do this process against a whole load of other currencies and as they fluctuate and increase and decrease in value.

Now this is the key lesson I failed to learn last time. I truly believe there is a massive market correction on its way and early indicators on the market seem to suggest it might have started already.

For the short term, as soon as possible, I am dumping most of my portfolio into DAI and going to ride the storm out. It is coming, its only a matter of time. Then as one wise person said in September when I bemoaned my losses, 'just buy the dip' I will be in a position just to do this.

Incidentally as an additional point to further stablise my portfolio I have removed some profits and made them untouchable, in the form of stable coin they are happily sitting in Celsius and staking at a healthy >10% APY. To put that into context, for FIVE TIMES LESS FUNDS than I have in my bank savings I am currently receiving SIX TIMES as much  in a single month from Celsius. The rest of my DAI is sitting in Coinbase staking at a mere 2% (but still better than the banks!) and waiting for the dip.

The storm is coming, it is a question of when and not if it is time to batten down the hatches. Don't make the mistakes I made in September.