Sick kid, text: DO YOU THINK ABOUT CRYPTO RECOVERY TIME?

If you want to take your crypto trading to the next level, you need to take into account recovery time

By Patch | Things of note and other interesting stuff | 22 Jul 2022

I was reading a post about the property of cryptos. And in that post, they talked about the fact that cryptos loos and gain value at different speeds. They call this the recovery time. And I went, yes, yes, nodding to myself as I was reading, this is obvious. So obvious in fact I think most people overlook it until someone points it out to them. At least this was the case for me. So the goal of this post is to do just that, pointing out the obvious.

What is the recovery time

Recovery time is the name for the amount of time it takes for an crypto to fall in price, and then climb back up to the same price. And this will be different for basically all the cryptos. Some of them will have a longer recovery time while others will have a shorter one.

This can be viewed on all time frames. This means depending on your focus and the type of trades you do it can still be equally useful for you.

How can we use recovery time to our advantage

There are probably several ways you can use this concept to your advantage, but I will try and cover the once I have found.

If you trade in several cryptos you probably have noticed that they all tend to follow a similar pattern. Where Bitcoin goes the other follows. Meaning if Bitcoin dips then the others do it as well. But all crypto does not dip at the same speed. Even if the amount they did tends to be pretty uniform.

This means that in a downturn, you want to be holding crypto that has a slow falling speed. And at the faster cryptos have fallen to the bottom, you can then jump swap to them. Making a profit.

And the opposite is also true. In an upturn, you want to hold a position that climbs as fast as possible. And as it peaks you then want to swap to the other slower cryptos that have yet to recover fully.

This has now created two opportunities for you to make a profit, increasing your crypto holdings. This would be in contrast to just HODLing your crypto. And it was this that as I read it seemed so obvious. But yet had not been something I had thought of myself.

But sure I understand that it is an advanced tool to use. Advanced not in its concept or execution. But advanced in the fact that you intimately need to know your crypto, so you can be confident in the fact they have different recovery times, and that you know which one is the slower of the two. Because if you mess it up, it will be a disaster.

I have linked the article in question I read down below. So you are able to take it in in all its glory. =)

I hope that you have found this post to be useful and informative. And in case it was not obvious, it is not financial advice. Please share your thought on this topic in the comment section down below.

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