INVESTING COMPETITION (20 SBD PAYOUT) - How to Fight a Bear... Market
RULES:
- UPVOTE/RESTEEM in order for your submission to be considered
- LEAVE A COMMENT describing how you plan to fight off the BEAR MARKET (or how you would do so if you're bullish)
- MOST UPVOTED bear market strategy WINS payout of 20 SBD
Stipulations: Must be minimum 10 participants for contest payout to be awarded. The contest will last for 3 days, beginning 7/12/2017 @ 12:00 AM EPT. Only legitimate investing strategies will be considered.
My Bear Market Strategy:
I have been investing in a diversified portfolio of blockchain assets for some time now. I got in just before the market started to take off and made big gains very quickly. For the past month or so, however; it has become increasingly difficult to make a decent return in the crypto market. My research suggests that the down-turn in the market is due to apprehension about the future of Bitcoin leading up to its proverbial day of reckoning on Aug 1 of this year. That's when the mining community plans to make a decision as to whether they will come together and implement segregated witness technology, or split into two separate factions; effectively creating two separate kinds of Bitcoin.
It has become apparent to me through my experience, that the cyclical behavior of a traditional market is accelerated exponentially in the crypto market. This is due, in part, to the fact that the markets do not close and they currently remain unregulated. That being said, I have chosen not to shrug off the signs pointing toward the coming bear market as mere conjecture from your run-of-the-mill cryptocurrency doomsayer. Accordingly, and rather than simply taking my money out of the market and waiting for the harsh winter to blow over, I have decided to protect my assets (while continuing to make a return) by diverting funds to more fixed-income style investments. My choices are outlined below. Let me know what you think of them in the comments:
Monaco VISA Debit Card - Monaco (MCO) is a company built on the Ethereum blockchain that recently issued a successful ICO which raised over $20M. Their product is a debit card, paired with a wallet application that can hold ETH and BTC. Through the application, customers are able to send/receive the two cryptocurrencies and delegate a portion of the funds in the wallet to be accessible via the Monaco debit card. A 1% fee is charged in the form of ERC20 tokens every time the card is used. The funds collected are held in a secure account controlled by Monaco and later distributed to all who hold the token through a specialized smart contract created during the ICO.
Polybius (PLBS) - In many respects, Polybius is no different than a traditional banking institution. What seperates them from the pack when it comes to the decision between ordinary bank stocks or cryptocurrencies is the fact that they are both (kind of). Polybius resembles the next step toward bringing our antiquated banking system into the blockchain era. By participating in their recent ICO, contributors were granted PLBS tokens. These represent rights to the profits of the business (similar to stock). At the end of the year, Polybius will utilize blockchain smart contract technology to issue 20% of its profits to the holders of the tokens in the form of ETH. Unfortunately for those looking to acquire some of these "Polybius Blockchain Shares" now, it is not possible. 100% of the available tokens were sold to those who contributed in the ICO. The argument could be made that - in a way - the business model which Polybius has chosen to adopt is simply paving the banking cow-path, however; whether that is true or not is irrelevant. They still represent a better store of wealth than traditional banks and cryptos when fighting off a bear.
Genesis Mining- A more well-known company than the previous two, Genesis offers cloud-based cryptocurrency mining services. Simply put, customers have the ability to rent mining equipment by engaging in a contract which entitles the customer to the revenue generated from the mining equipment in the form of the particular token that is being mined. You are able to choose which tokens you would like to mine based on personally preference. This is important, because choosing the wrong token could cost you. For example: engaging in a two bitcoin mining contract tomorrow might not be the best idea, being that the future of the currency is being called into question. In a way this is still betting on the market, but it is similar in nature to purchasing bonds.
Only time will tell if these investments serve as an effective means of protecting one's portfolio! Let me know what you think of my ideas and tell us how you plan to FIGHT THE BEAR in the comments below!
THANKS FOR READING and PARTICIPATING! :)
SUBMISSIONS WILL BE CONSIDERED BETWEEN NOW AND THE END OF THE 3 DAY CONTEST PERIOD, AT WHICH POINT FUNDS WILL BE SENT AND THE BEST STRATEGY ANNOUNCED
MAY THE BEST INVESTOR WIN!!!
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I've done exceptionally well on the DEX trading the BTS:bitCNY pair, which has the best liquidity of any pair on the DEX. I do poke my head into bitUSD:BTS and HERO:BTS in order to contribute to liquidity on those pairs.
During what is being referred to as "the bloodbath" the other day (sunday afternoon into mon night/tues morning), I increased my BTS position by 50%, so I actually came out ahead in USD value even before it formed a double bottom last night and reversed direction today. My strategy consisted mainly of trading stochRSI on 4H, with a little bit of TA thrown into the mix - basically identifying the channel the decline was staying in, finding intersections between the bottom of the channel and past supports to predict where it would bounce for my buybacks, and calling the bottom based on the intersection of 1D trendlines.
Along the way, I spread a small slice of profits around by sniping panic sellers with bids placed bellow market rate. I got some discount SBD (even moreso than it was discounted according to coinmarketcap), which I used to power up before the markets rebounded, got a few LTC about 5% off, and a handful of discount ICOO (they pay monthly dividends).
I do regret that I wasn't paying attention to what XMR was doing until it was far too late to open a leveraged short position.
This is more trading than investing, but I figure it fits here given that it was utilized to increase my position in long term investments - in times of great volatility there is also great opportunity. This is a strategy that doesn't require non-stop attention to price movements (4h stochRSI moves slowly, typically only crossing once every couple days. Constant attention is only required if you decide to gamble on profiting from much more short-term movements along the way, but that's also a lot riskier.
I intend to keep doing this to maximize my position while things are cheap, (hopefully) in time for when the rocket fuel for the voyage to the moon is found.
I should get myself a bearskin rug...
Edit: Upvoted, followed, and resteemed.
Wow, I'd say you deserve that bear skin rug! Very impressive, nice work!
Hold the applause. We won a battle, and earned a brief respite. They have regrouped - the bulls and bears are going at it again.
Be fearful when others are greedy, and be greedy when others are fearful.
Never make trades on emotion - you will wind up following the herd, and are almost guaranteed to lose money as a result.
Bears make money, bulls make money, pigs and sheep get slaughtered.
Thanks for the good content you've posted @around-z-block. You deserved a upvote and a resteem. I am investing in stocks and cryptocurrencie and in this bear market I use my dividend income from my stocks to buy some undervalued crypto. When the bull comes back in the crypto market it will earn me a lot of money. It works also vice versa, the cryptocurrency are good protection of my stock investments when there is a bear market. When there is a bear market for stocks, I can use my crypto's to buy some undervalued stocks. It's a kind of 'hybrid' investing.
fight the bear = im up to about 20 different currencies now - the only time i feel a pinch is when they all dump at once - in that case i usually buy more !!!
diversify - buy shit when it's on sale !
I think the best strategy is to hold and buy when it dips low if you can afford to do that. Everyone panic selling is what drives the price down.