Bitcoin Forum

We just published a brand new study! It discusses the threshold rebalancing strategy and how different thresholds have affected portfolio performance.

Check it out and let me know what you think!
https://blog.shrimpy.io/blog/the-best-threshold-for-cryptocurrency-rebalancing-strategies

Happy to answer any questions!

A simple day trade can beat up Hodling when it comes to profitability but it always depend on how much you are holding or actively trading on.
Im not familiar with Rebalancing but basing with those figures this really proves out something.

It depends on whether you use leverage or not and what percentage of your hodl stack you allocated to your speculative stack. Day trading in the current market is a total no-go for me personally.

I tried to do some short term trading a while ago but it didn't work out. If I kept hodling I would have made more than risking my coins just to make a silly 5-10% profit per trade.

Hodling doesn't require much other than dedication and firm believe in Bitcoin, and to some degree patience when we're going through a bear market. In return you get an opportunity to average into the market at lower prices. :)

In any case, HODL strategy does not bring so much nervousness and is not as time consuming as trading.

While this is true, this study evaluates over 2 years of the strategy. I suspect most day traders would not perform so well over the same period.

  Hodling is the most recommendable strategy to perform which can give huge profits when bulls extremely exceed. Perhaps, there were people who choose on day trading as they taught they can earn gradual profits day by day. But I think nothing's can beat with hodling as long as we bare our patience widely to wait the great bulls occurrence.

There are 3 rebalancing strategies that can be used:
1. Buy and Hold
2. Constant Mix
3. Constant Proportion

maybe the 3 strategies above can be your consideration too.

True bro, daily trading also sees market conditions where dicrypto volatility when seen in the period of the day will be greater so that prices fall and rise so quickly because it requires a good analysis of daily trading.

That is, if you are really in it for the long haul. Sadly, you will hear speculators and investors saying that they prefer to HODL, but the minute they see their portfolio going down, sooner or later they will just decide to dump because they are not that comfortable. HODLing is very tough, you need a lot of mental patience not to get nervous and stay cool under pressure.

Of course it really up to the individual, others love the challenge to make a daily profit and playing with their money, while nothing beats it, not everyone can do and make it profitable at the end of the day, specially when dealing with risk.

That will need more skills to beat holding because if we don't have skills in trading, we cannot make a nice profit in daily. Besides that, we need always to monitor the market so we can know what is happening to the market and if somehow, there are bad movements from the market, we can know what we need to do. Both day trading and hold are good for every trader but they need to learn more about trading and to hold so they can take as much profit as they can.

No matter the strategy we all talk about, Holding will always be the best for me, everything is not about money, but we also have to consider the peace of mind that cannot be negotiated when it comes to holding unlike trading, trading comes with lots of tension and the chances of having profit in trading is also 50:50, 50:50 in the sense that one single mistake in a trade could make one go broke for the rest of one’s life, especially for those who are trading heavily.

The goal that most of all do have is to make profit, and it is not only about the profit you make, but what you do with the profit afterward. Someone trading could make so much now and blow it away easily because getting it looks quite easy, but the person that held for a very long time would consider the time of waiting and utilize the profit very well into other investments.

when we hold when the coin price is low and now it's in a high position. maybe the profit will get well but it is better if it is a holding coin that has the potential to keep profit

If you use a rebalancing strategy, you do not need to have trading skills, you do not need to monitor the market constantly, and you do not need to predict the movements of the market.

Your article looks interesting but it is way too long and a bit difficult to understand.

If you have a practical tutorial of your strategy you could share it here,  I am very much interested

It is interesting but have you considered the liquidity is simply too low

Thank you for your interest!

You can find more information about the strategy here:
https://blog.shrimpy.io/blog/threshold-rebalancing-the-evolution-of-cryptocurrency-portfolio-management

Please let me know if this helps!

I really hate tension in my life, which is why I cannot cope with all the hassles of short term trading, most especially day trading, so I would rather just prefer to hold on to my investment till I get the desired profit, and the good thing about holding is that some of them could go higher than 305% and surge as high as 1500%. So what more does a trader want or an investor need that is more than this, if I can get such increase on all my current investment, I am already made.

But like you said, holding will only be worth it for any investor if the coin that we are holding has a very good potential of succeeding in future, so that we don’t end up holding coins that are shitcoins and expecting any miracle from some of these dead coins that we have in the market. I know that the next question would be how to know potential coins, the only way is to just stick with top 20 coins, that is all.

It seems to me that, first of all, the result depends on the coin of your choice or, as a rule, several coins, with the help of which you go out for daily trading.  The fact is that long-term storage of cryptocurrency today shows the possibility of very long expectations, before you get at least some profit.  You need to wait 2 or 3 or maybe even more years.  From the Raider with the help of daily trading can get a good profit, of course, if you have the necessary knowledge and experience.

I know too well about this. Since joining the crypto market, when I know that this is a decentralized market and has no control of the law, I know that this is a potential market for good traders.
Our market is always more volatile than the stock market and forex. The value can increase by 300% - 500% in a few hours and can be reduced by more than 500% in just a few hours.
Therefore, the hold strategy is never good. We really should learn how to trade to get the most profit in the crypto market.