MADICOPE - Long Term Easy Crypto StrategysteemCreated with Sketch.

in #bitcoin6 years ago

WORRY-FREECRYPTO PORTFOLIO.png

Think about all the information available on Twitter and Blogs on Crypto. Most of the info available is trading info, since lots of people are trying to profit from price volatility cryptocurrencies have.

However, as an average investor, it is really difficult to develop good trading skills, track trade ideas, research small caps, buy them and sell them with enough gains for the next trade.

I agree that the trading approach can work for some people, but it is important to be able to pay close attention to the markets and have time available for trading. Besides that, mistakes can be costly for newbie traders, and long term opportunities may be missed due to some bad trades done at the beginning of investing in cryptocurrencies.

But is there any way to approach the market, then? Well, first of all let's assume just one thing: either Crypto is going to make it, and be a very important part in our lives in 10 years time, or not.
So the important play here is to position ourselves well in order to obtain good gains in crypto 10 years form now. If Crypto makes it, we will be in a great position, and if it does not, we need to protect our capital in order to go on with our life.

With that in mind, how can we proceed?

In my opinion, it all comes down to this:

  • Take positions in cryptoassets that, if Crypto succeeds, will be mainstream use.
  • Have a diversified portfolio, based on coin fundamentals, in case some of our picks don't "make it".
  • Try to leverage, when possible, compound returns, in order to keep increasing the holdings value over time.
  • Buy periodically. This way, we will be able to minimize price swings and pumps and dumps. Sometimes we will be buying and a dip will follow and sometimes it will be the other way around.

Mainstream

Let's start with mainstream adoption. When thinking about what may we be using in the future related to blockchain and Crypto, what comes to mind? I am not going to give specific coins in this post, but whatever coin/protocol comes to mind, is probably a good investment.

Diversification

Since Crypto is such a volatile market, it is really important not to keep all the eggs in one basket. That is why we need to pick different coins that may accomplish similar things and that comply with the #Mainstream rule and have them in our portfolio, on different percentages according to the confidence we have on that pick.

Compound interest

Is there any way we can get rewarded by holding cryptoassets? That would be really helpful since even if the value of our coins drop in time, we may be earning some extra assets. Think about potential airdrops, stacking, masternodes... Any holding that can give you extra interest over time is a plus, since we are planning on holding these assets for a long time.

Periodic buys

Since we cannot guess what is the best moment to get into the market, it is important that we do our buys in a way that we are protected of immediate downswings after our buys. The best way to do so is buy buying a fixed amount of coins any given time, regardless of the global market state. Since from the above points we will have our list of coins-to-invest-in ready, we can check at any given time what good opportunities we have available in those coins, and take good positions in them.

This portfolio strategy will take most of the decisions out of the table, and you only need to make some buying trades every given time. I really think it can get us in a good position in order not to mis the crypto opportunity that is coming in the following years. Se some capital aside every given time and invest it. Protect your cryptos in a cold storage and let time do the work for you. No need to focus 24/7 in crypto, go out, have fun and relax!

Shall we talk 10 years form now?

If you are interested, I will start a portfolio with these premises. Follow and vote for related posts!

Sort:  

Diversification and periodic buys a.k.a 'dollar cost averaging' are surely golden nuggets for wealth creation in any aspect of investment. Great post, thanks for sharing! Cheers!

Thanks for your comment and vote! I hope this info was useful, it certainly has been for me! :)

You're welcome, it sure was!

You got a 2.80% upvote from @luckyvotes courtesy of @savitend!

@masterbot has been called by @savitend to give you 0.70% upvote!
Check this post for information about delegation. Make me strong!

You got a 1.94% upvote from @mercurybot courtesy of @savitend!

Coin Marketplace

STEEM 0.16
TRX 0.13
JST 0.026
BTC 59515.78
ETH 2505.02
USDT 1.00
SBD 2.47