Balancing Your Crypto Strategy - Do these 3 things today...

By @soscrypted | TheCryptoStew | 2 Dec 2020


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#1 Develop Your Technical Analysis

We often shy away from the technical analysis here in the articles, as we urge our supporters to take a more big-picture view of the markets. Sometimes it is certainly a good idea to consider the TA.

While TA is certainly healthy to examine, all of the sure bets are always shrouded by dark clouds of the “what-if’s” and the “should never-happens”. Because of these liabilities, and our desire to preserve capital above all else, the best strategy for most is balanced, cognizant of these liabilities, and observing of the TA, but preparing to harness the power of these markets in either direction.

 

#2 Develop A Balanced Strategy

Buy dips, but do not go whole-hog.

Save a % of capital for the odd chance that a double-dip occurs, wiping out those who entered the trade where the “technical” recommended. Even beyond that, save a small % in the case that even that should go wrong. You get the idea. In this fashion, should markets go lower, you can accumulate even greater assets, and enter profit earlier on the return upwards. If markets follow TA, then you are able to enter into strength and ride them up.

It is hard to beat the DCA model of slow accumulation over a variety of ranges. This dollar-cost averaging does have a bit of a disadvantage in times when TA calls for a run higher. When the likelihood of gains forces rash trading moves, so too does the likelihood of buying the top and being caught out of a lower price-target buy-in, a liability that many should not be embracing.

Develop your balanced strategy by understanding how money moves and operates in the traditional financial markets, in order to also understand the strength of and develop your strategy within the decentralized and parallel financial markets. 

Are there times to make significant buys? Absolutely, but do so with tremendous due diligence, so you bank gains and don't destroy momentum.

 

#3 Continue Feeding Your Investments

The continued investment over time will be a part of your balanced strategy.

Unfortunately for many, this is easier said than done, and people tend to spend money where it isn’t needed. Practice discipline here. Increasing total investment is the single greatest contributing factor towards utilizing percentage growth; aside from picking assets that do grow over the rate of inflation.

Adding $10, $50 or even $100 per week is a small ask for most people, and will over time net you greater returns than the Starbucks, Dinner, Clothing, or new tech toys.

Because of how inflation works, and how markets in many traditional assets including physical precious metals and paper ETF’s are rigged (knowingly) and have been proven to be so, we must choose assets that are more likely to appreciate over the rate of inflation and without being a victim of hidden inflation themselves like stocks.

Continuing to push underperforming or decaying assets into deflationary or stable growth assets is a way to continue fueling investments and harnessing the power of percentage gains.


Coming soon probably …

  • Holding Cash: Hidden Inflation Tax

  • Guide: How to create a “Forced Savings Account”

  • Guide: Choosing the right exchange; Gemini vs. Coinbase

 

For more updates and guides, as well as our coming podcast updates, subscribe to thecryptostew.substack.com.

Keep stirring.

 

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@soscrypted
@soscrypted

The Crypto Stew is a community giving blockchain-centered market updates for newcomers, and nuanced personal development philosophy for the experienced.


TheCryptoStew
TheCryptoStew

The Crypto Stew is a community giving blockchain-centered market updates for newcomers, and nuanced personal development philosophy for the experienced.

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