My 2017 & 2018 Crypto Investment Strategies


#1

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:

  1. 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
  2. Dollar Cost Averaging into XRP, NEO, ETH, ICX on a weekly basis to hodl
  3. 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!


#2

I’m going to stick to my strategy. Buy high and sell low! :rofl:

Jokes aside here is my current strat:

  1. Weekly recurring purchases of BTC and ETH
  2. Day trading (XRP, ADA) according to level of volatility in order to advance my positions
  3. Lots of praying

#3

So, at the beginning when investing in crypto I had set myself two parameters:

  1. I won’t sell until the price of ETH (my main investment) hits at least €500,-
  2. Or until the date hits 1 Jan 2020

I did this so that I didn’t have to worry about the price on a daily basis, I wasn’t going to day-trade, so checking up on the price constantly and trying to figure out when to sell seemed to me like a pointless distraction.

Looking back, €500 was a low target, but I had not sold it yet until it eventually hit €1150 at the recent run-up.
I’ve liquidated about 70% of my portfolio and kept 30% and will hold that at least until 1 Jan 2020.

As I’m currently working full-time on Cryptominded and building up an income, my goal is to use the liquidated funds to support this journey. Eventually, I’ll start putting in a percentage from the cash flows into crypto again.


#4

I use a rebalancing scenario so at the beginning of the year take a lump sum and split it between the top 10 (minus a couple I truly dont believe in) and then every month re-asses and rebalance the figure depending on where they have got to over the month. I like it because it takes alot of day-to-day hassle as I dont have time to day trade.


#5

Thank you, simon for these insights.

I find today that a randomized buy strategy is effective on a consistent schedule using more of a traditional asset allocation model.

Like this, for example:

80% safer coins (BTC, ETH, LTC)
20% riskier coins (RIPPLE, TRON, etc.)

Once a week, I set aside a certain amount of money and buy into these two bucket categories no matter what - similarly to how more sophisticated funds invest.

Taken from Ray Dalio’s playbook.

I’m not the world’s best investor, but this has historically worked really well for me.


#6

Been DCAing on ICX, NEO, VEN, WAN, BNB and ofcourse pumped some fiat in on the dip for more BTC.


#7

Hello Mikey,

Could you talk a little bit more about your trading strategy?


#8

#9

as a platform for ICOs, ethereum’s smart contract middleman-eliminating blockchain is highly attractive. i have a background in marketing and have familiarized myself with an ico called datablockchain.io that seems exciting…it uses an erc token on a platform that enables sales professionals to go online and buy leads, similar to Salesforce’s data.com or Infogroup’s SalesGenie. However, datablockchain.io has much greater potential since the smart contract ethereum based blockchain platform provides for a system that data providers can trust when it comes to receiving instant and accurate payments on data usage. As a result, this platform is likely to attract more data providers resulting in a marketing data offering that surpasses data.com or salesgenie in terms of coverage, quality, and cost.


#10

hey Simon, ive been trading on Binance but im totally new to this. when i place a trade it says it charges a fee. My question is if i buy $10 in crypto and the fee is $5 then sell back what i bought for $15 did i basically jus break even? would i have to be able to sell for $20 in order to get my $5 profit? hope you understand what im trying to ask