Crypto Strategy

[nicolas1979]

Ladies and gentlemen,

I am currently trying to set up and asset management strategy for my crypto currencies.
I hope to find some experienced people who might want to share their way which works for them for inspiration and learning.


Asset management example:

100% investment seperated into the following risk areas:

1) safety = "solid" hodl @ 50% of total investment (only very trusted and established projects with examples like: BTC, ETH, LTC,...)
2) low-medium risk = "mobile" long term trading, lending @ 30,9% of total investment
3) high risk = "aggressive" ICOs, unpopular altcoins, trading - buying underpriced / bleeding altcoins @ 19,1% of total investment

Each area in itself spreads the investment into different projects, depending on your preference / trust to avoid an "all in" situation in any of the 3 risk areas.

-This system transfers wealth from area 3 & 2 towards area 1, the safe pot, where you accumulate crypto wealth.
-You are not allowed to "refill" losses from area 2 or 3, you are forced to manage each area to gain profits with its own more detailed strategy.
-Profits from areas 2 & 3 are redestributed among the entire investment, while area 1 keeps beeing fat and greedy, sharing nothing for safety.
-Area 1 can cash out 10% after a gain of at least 20-35% for buying stuff (land, house,...), which prevents you from cashing out more than it actually accumulated.

This system works, if you have a working profit strategy, simply YOLO-ing will not be of much success.

This system works like a tree, spreading into finer parts of asset - risk management, where we have 3 main branches which follow a different strategy.
If you like, you can use the same system on each branch again as a pattern which repeats itself, like the branches of a tree do.

This diversification of your asset gives you the advantage of damage prevention from risk while also allowing for some profits to be achieved.

Ideally you even seperate these 3 branches into different wallets and keep them apart. This way you also see quickly, if your strategy in the risky branches 2 & 3 does or doesn't work.
You are forced to make profit with branches 2 & 3 to "keep them alive" and be able to redistribute the newly accumulated wealth.

Since all people are unique, you might want to change the %-amount of each of the 3 areas. The only way which makes sense to me is to increase the percentage of the safer branches and put less investment into area 3 or even area 2, which means to take even less risks, because I consider this strategy example as pretty aggressive and greedy imho.

Let me know if you have any ideas for improvement or if this helped you!

evdokimo

Your calculation is good, full explanation in easy method I understand. But unfortunately reality not always same with calculation, sometimes our limit ( stop loss ) reached and lost will be ours. Diversification is good to open more opportunity to make profit and minimalism loss but I'm afraid this method can used in high demand ( up trend ), down trend is exception. I need learn about this one but thank you anyway.

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[leialdover]

Its a very nive strategy and explanation too, by the way. But in crypto, even if you follow a certain strategy, sometimes it doesnt make 100% success. Crypto these days is very unpredictable so the strategy itself should be unpredictable too. Well that is just my opinion..

[toygama]

Those are great explanation of the most common ways to leave here and performing on a cryptocurrencies market, but it is totally depending on every personality of human being that is involved.

Different personality of man is one reason why everyone needs to find out and figure out their strategy themselves

You need to be sure what strategy work for you, keeps you in line and ensures your profit
Those factors are important

Whatever our individual behavior or strategy here in crypto world I think the important is we always open our mind to accept new ideas and want to learn new techniques and always have patience.

[Financial Freedom 4U]

Ladies and gentlemen,

I am currently trying to set up and asset management strategy for my crypto currencies.
I hope to find some experienced people who might want to share their way which works for them for inspiration and learning.


Asset management example:

100% investment seperated into the following risk areas:

1) safety = "solid" hodl @ 50% of total investment (only very trusted and established projects with examples like: BTC, ETH, LTC,...)
2) low-medium risk = "mobile" long term trading, lending @ 30,9% of total investment
3) high risk = "aggressive" ICOs, unpopular altcoins, trading - buying underpriced / bleeding altcoins @ 19,1% of total investment

Each area in itself spreads the investment into different projects, depending on your preference / trust to avoid an "all in" situation in any of the 3 risk areas.

-This system transfers wealth from area 3 & 2 towards area 1, the safe pot, where you accumulate crypto wealth.
-You are not allowed to "refill" losses from area 2 or 3, you are forced to manage each area to gain profits with its own more detailed strategy.
-Profits from areas 2 & 3 are redestributed among the entire investment, while area 1 keeps beeing fat and greedy, sharing nothing for safety.
-Area 1 can cash out 10% after a gain of at least 20-35% for buying stuff (land, house,...), which prevents you from cashing out more than it actually accumulated.

This system works, if you have a working profit strategy, simply YOLO-ing will not be of much success.

This system works like a tree, spreading into finer parts of asset - risk management, where we have 3 main branches which follow a different strategy.
If you like, you can use the same system on each branch again as a pattern which repeats itself, like the branches of a tree do.

This diversification of your asset gives you the advantage of damage prevention from risk while also allowing for some profits to be achieved.

Ideally you even seperate these 3 branches into different wallets and keep them apart. This way you also see quickly, if your strategy in the risky branches 2 & 3 does or doesn't work.
You are forced to make profit with branches 2 & 3 to "keep them alive" and be able to redistribute the newly accumulated wealth.

Since all people are unique, you might want to change the %-amount of each of the 3 areas. The only way which makes sense to me is to increase the percentage of the safer branches and put less investment into area 3 or even area 2, which means to take even less risks, because I consider this strategy example as pretty aggressive and greedy imho.

Let me know if you have any ideas for improvement or if this helped you!

evdokimo

This is an investment strategy that probably put‘s you ahead of 99% of everyone else. I live that you applied laser precision when it comes to allocate the percentages even with decimals.

The only weak link I detect is that you only diversify your assets within one single market, and that makes you vulnerable, regardless how good your strategy is.

As mentioned before, I am trading stocks for over a decade and crypto since last year. I also agree that is easier to trade stocks, simply because the volume is so high that a few whales or big investors cannot influence the market as easily by dumping their shares. The stock market is also much more regulated, if someone is being caught doing washtrading or spoofing the consequences are dramatic. In the crypto world manipulation is something that poses a constant threat. Just look at the market now, the recent dip is not tight to any event, news or even fud. 25 billion just disappeared and people are wondering wht‘s going on.

Long story short, it‘s great you have a diversification plan but also think about moving assets from crypto to fiat, stocks or raw materials and precious metals.

Otherwise you will still be massively exposed as you have all of your eggs in one basket. Different eggs in size and colour but all eggs. If the basket falls, your eggs still get crushed.

[Coltpython]

This is an excellent strategy. Among other things, it at least guarantees very minimal risk involved. My issue with your strategy is that the crypto market is highly volatile and difficult to predict. Any ideas on how to cut losses when things go south?

[evdokimo]

Thank you guys for this great feed back!

This is just a crypto strategy, it is not an overall asset management strategy. Currently I am building my crypto portfolio till the next big bull or even new all time high, let me see.

My plan was to start with something, go deep and try to become efficient at it, before moving to something else. Crypto currencies seemed to be more important over the stock market simply because the stock market is established already, cryptos are not. This means, that focusing on cryptos first seemed to me to be the better option. As soon as it feels right, I will expand my assets also into different things, like real estate, start ups and gold, because I believe those are the next best choices I could find so far.

I fully agree, that this strategy is NOT a complete one, nor is it an overall asset strategy. It was just an idea how to start going more serious on my crypto assets, I would never have expected it to become so well recieved by so many people!

If this trend continues, it might motivate me to create a complete PDF version including graphics which would make it understandable for almost every person on earth.
I definitely plan to show some numbers once I got it implemented and working for a while and to post my experiences including an updated version, since no plan survives the first battle...

@ Financial Freedom 4U
Many people considered the crypto volatility as a gift for trading and profits, how comes that you see this point differently?

@ Coltpython
If things go south, you have the option to hodl or sell (which might be a panic sell... bad idea).
You can only do it if you are aware of that situation AND capable of actually doing something (taking coins from wallet to exchange and sell at any time...)

As you can see, these are many factors already which have to be given in order to "save" your assets. A possible solution would be to have a dedicated crypto smart phone with API keys from your exchanges connected via Tab Trader and a Wallet App where you own the private keys.
This combination enables you to be ready at any time, if you set an alert and track the price, you should not miss any dip anymore.

I didn't like the idea to give somebody I don't know an API key which can withdraw funds from an exchange, because that is a serious security breach, which forces me to do it from home and sometimes leave some assets on the exchange during the day, which is a VERY bad thing too, to be honest.

I have not found a proper solution to this issue yet. Dragging a notebook or tablet around is too big and a smart phone needs an app, using its' browser is blocked by the exchanges for a good reason. Which leaves me with some bad choices.

I would be really happy, if somebody comes around with a solid solution to this issue. Because IF you are not ready 24/7 or as soon as your alert goes off, you are going to miss a lot of opportunities.

[tycsols]

I think your investment strategy is very rational, balanced and worth the risk, with this strategy i think one can gain more and also avoid risks as you have allocated major part of your investment in solid coins, we all know these solid ones will become profitable long term.

[zero4five]

The lack of aggressive strategy is at high risk, and also that, in fact, it is not investment, but speculation.
With moderate strategies, the investor expects to make a profit after a certain time, for example, in a few months. For this, it is not enough to rely on the leaping course, we must study in detail and analyze the prospects of the chosen currency.
Large investors with solid capital, work experience and market knowledge, as a rule, do not limit themselves to one type of strategy. Usually they form a portfolio of different assets, and each is selected their own approach.

[LuciferEveningStar]

Its a very nive strategy and explanation too, by the way. But in crypto, even if you follow a certain strategy, sometimes it doesnt make 100% success. Crypto these days is very unpredictable so the strategy itself should be unpredictable too. Well that is just my opinion..

In my own opinion, you did not even need to follow the advice or strategy of other traders because the market price is based on supply and demand so wait for the price of your coins to grow before selling it in the market.

[evdokimo]

The lack of aggressive strategy is at high risk, and also that, in fact, it is not investment, but speculation.
With moderate strategies, the investor expects to make a profit after a certain time, for example, in a few months. For this, it is not enough to rely on the leaping course, we must study in detail and analyze the prospects of the chosen currency.
Large investors with solid capital, work experience and market knowledge, as a rule, do not limit themselves to one type of strategy. Usually they form a portfolio of different assets, and each is selected their own approach.

I am not sure what to understand from your first sentence. Do you mean, that the lack of aggressive strategy is a high risk factor and a speculation?
Could you please explain this idea in more detail?

I fully agree, having a specialized strategy for each coin itself is the professional way to go.
I bet a lot of experience is of great help, but that must be gained by people like me yet.

It will take a while to set up such a system with this kind of depth from scratch though.
As I mentioned in my first post - the pattern I described with the dark numbers can also be used in more detail, which includes an entire project itself.

This is still only the asset management part, I still need to make a strategy on how to exit.
Buying has been pretty simple in the last months, because of all these beautiful dips. Selling would have been extremely lucrative too, but I was actually expecting the bullrun to happen already.
The other way around could be, that my greed stopped me from making profits. The fear of missing the bull if selling...(yes, I know its FOMO) That is the reason why I might benefit from technical analysis while having my strategy implemented. It feels like a safety cord to a certain extend, though losses are inevitable, they happen to everybody at some point.

I wonder how well professional traders can trade cryptos, like how their profit : loss ratio in the number of their trades looks like (simply profitable trades vs non profitable trades, not the value of the trading itself)

[Jerrycryptofield]

Your explanation is quite good. I also think that it is all about strategies. And this strategy thing varies from person to person. It is very essential to find your strategy that can actually do the trick and help you in profit.

[CJ7]

of course the best strategy is to buy as much at the low price and hold it until the price of the crypto is high.
hold by buying a variety of tokens, see continue its development.
this will be very beneficial if we always look at the statistics.

[johnokeefe09]

to invest in the market you must have the strategy. You must have a plan how to profit. i like your explanation. one thing i want to add i think in crypto market patience is most important. You have to take patience to get desire success.

[cryptojohnn7]

Crypto world is so huge and intense that is the reason why it is pretty hard to navigate situations here. So before making any transaction as investor, doing research is so much important which will lead anyone to find out strategies.

[jonloner011]

Good post and I get to know about a lot. For every investor it is important to be prepared for talking risk along with a good strategy and sticking to that strategy with patience is also needed

[Brianlee0112]

Nice explanation on crypto strategy. Thanks for sharing your strategies , I am holding many different Cryptocurrencies for long term, but have been considering day trading. Your advice will help.

[harrybell]

for being successful at crypto currency the investors needs to make a proper strategy,  buying coin on a low price is one of them, if you invest less money on a right thing then there is less chance to face loss and lost your money, understanding the opportunity is very important.

[doycku]

for being successful at crypto currency the investors needs to make a proper strategy,  buying coin on a low price is one of them, if you invest less money on a right thing then there is less chance to face loss and lost your money, understanding the opportunity is very important.

I can not understand what the strategy is. If you invest less, Of course the losses will be less. But at the same time, and earn less, If the project will be very promising.

[kingvirtus09]

Ladies and gentlemen,

I am currently trying to set up and asset management strategy for my crypto currencies.
I hope to find some experienced people who might want to share their way which works for them for inspiration and learning.


Asset management example:

100% investment seperated into the following risk areas:

1) safety = "solid" hodl @ 50% of total investment (only very trusted and established projects with examples like: BTC, ETH, LTC,...)
2) low-medium risk = "mobile" long term trading, lending @ 30,9% of total investment
3) high risk = "aggressive" ICOs, unpopular altcoins, trading - buying underpriced / bleeding altcoins @ 19,1% of total investment

Each area in itself spreads the investment into different projects, depending on your preference / trust to avoid an "all in" situation in any of the 3 risk areas.

-This system transfers wealth from area 3 & 2 towards area 1, the safe pot, where you accumulate crypto wealth.
-You are not allowed to "refill" losses from area 2 or 3, you are forced to manage each area to gain profits with its own more detailed strategy.
-Profits from areas 2 & 3 are redestributed among the entire investment, while area 1 keeps beeing fat and greedy, sharing nothing for safety.
-Area 1 can cash out 10% after a gain of at least 20-35% for buying stuff (land, house,...), which prevents you from cashing out more than it actually accumulated.

This system works, if you have a working profit strategy, simply YOLO-ing will not be of much success.

This system works like a tree, spreading into finer parts of asset - risk management, where we have 3 main branches which follow a different strategy.
If you like, you can use the same system on each branch again as a pattern which repeats itself, like the branches of a tree do.

This diversification of your asset gives you the advantage of damage prevention from risk while also allowing for some profits to be achieved.

Ideally you even seperate these 3 branches into different wallets and keep them apart. This way you also see quickly, if your strategy in the risky branches 2 & 3 does or doesn't work.
You are forced to make profit with branches 2 & 3 to "keep them alive" and be able to redistribute the newly accumulated wealth.

Since all people are unique, you might want to change the %-amount of each of the 3 areas. The only way which makes sense to me is to increase the percentage of the safer branches and put less investment into area 3 or even area 2, which means to take even less risks, because I consider this strategy example as pretty aggressive and greedy imho.

Let me know if you have any ideas for improvement or if this helped you!

evdokimo

That's the best strategy that you've got there. Anyways if you hodling alot of coins. please do limit to hold atleast 3 to 5 coins and so. I don't want you to be like me that i bought alot of coins and no plans to sell at all. i'm currently -60%

[kellyscott]

for earning profit and being a successful investors with patience and hard work making proper strategy is also needed,  where and when to invest this is the main question so one needs to make a perfect plan to survive in this market.