Crypto – Reversion To My Roots

Before & After

We have seen a fair amount of volatility in the Crypto market of late. However, this was to be expected. As I mentioned some time ago, this is historically, an extremely volatile period. The months leading into the halving, as well as those directly post-halving, can be rather unpredictable, and as a result, somewhat volatile. That being said, we are in the final stages of “reasonable” accumulation.

One can continue building positions well into the halving. However, the process of securing the majority of your holdings should be done before the halving, or at least a month or two post-halving. Historically, true price appreciation begins approximately three months after the halving. This is when you want to hold most of your desired exposure in the market.

Many, are, of course, relying on a monthly income to continue a process of dollar-cost averaging. This creates limitations, regarding accumulation, and so the average investor will continue accumulating well into the bull market. However, one should endeavor to accumulate as much as possible before this period. In this way, ongoing accumulation is simply a topping-up process, rather than the bulk of a particular portfolio.

As I have mentioned, accumulation also tends to become rather expensive as the bull market matures. I entered the Crypto market approximately 9 years ago with a trading background, and so, trading has been a core element of my Crypto activities. Continuous experimentation has yielded several lucrative trading ideas. However, it is one strategy in particular that I have gravitated towards of late.

In The Driver’s Seat

With my recent adjustment, regarding the reduction of diversification, I have begun a rather strict practice of accumulation. One of the ways I can continue the process of accumulation is through capital rotation and trading strategies. My primary model is a hybrid model, made possible by the combination of traditional trading and capital rotation.

And so, I currently find myself being primarily engaged in trading activities. My primary goal at this stage of the game is to increase my holdings without deploying fresh capital. In other words, my current holdings need to work within the “mechanism” of the abovementioned strategy, if I am to reach my goal. In many ways, I have become somewhat consumed with this idea, with much of my attention and time being given to the fulfillment of this particular goal.

Seasons often arrive by surprise… all of a sudden, a particular idea or project becomes the primary focus, and so one begins an entirely new season with entirely new objectives. Other trading strategies and investments are of course also still in motion. However, my heart and mind are with this particular goal. Trading, with a specific end in sight, is now at the forefront of my Crypto journey.

Final Thoughts

An investment journey is like any other journey… you follow the road. The further you journey… the surroundings and even the climate begin to change. It’s a natural progression and one that cannot be avoided. If Crypto is an important chapter of your life, you will know what I am talking about. You just know when the season has changed… and what you must now do. All the best and enjoy the journey! See you next time!

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.

Posted Using InLeo Alpha