Thought I’d give a bit of insight into what I’ve done to date, and doing this year.
I’ve been into crypto for around 12 months, made the usual mistakes many people make when starting out (luckily with small amounts), but settled down fairly quickly. I’m primarily a hodler but dabble with a little bit of trading now and then time permitting.
None of the below is advice on any coins in particular. Do your own research and make your own decisions. I will say that if you are new to this, dollar cost averaging is what I would recommend as a starting point. It removes emotion and averages out your investment over the medium/long term thus reducing your risk compared to throwing all your funds at something in one go. You should still do some research on what you’re investing into though!
In 2017 I started weekly dollar cost averaging LTC and ETH, putting £25 a week into both. I found that I was missing some of the daily dips, so wrote a python script which would buy ~£7 of each per day (had to be this to meet the minimum order value on Kraken). This turned out to be a good move as it took more advantage of the ups and more importantly downs which were happening daily. I hit my targets (now that I look back they were pretty small!) and sold - unfortunately just before everything went crazy in Q4, but as an experiment and lower risk introduction into crypto investing it worked. I’d met my original target that I had set and showed I could invest sensibly - and automating these buys actually made it a lot more simple.
Forwards to 2018 and I’m doing some of the same but also experimenting again:
- I put at set amount of BTC into each of the following at the start of the year: ETH, XRP, LTC, ADA, DASH, NEM, XMR, NEO & ICX. This will be monitored monthly and rebalanced quarterly across the top 10(ish) coins. I say “ish” because I want to keep NEO and ICX in play and they may be outside of the top 10
- Dollar Cost Averaging into XRP, NEO, ETH, ICX on a weekly basis to hodl
- A bit of general trading when I have the time to
Anyone else have any differing strategies? Interested to hear what has/hasn’t worked for others!