STRATEGY FOR CRYPTO TRADING IN BEAR / BULL MARKETSsteemCreated with Sketch.

in #cryptocurrency6 years ago (edited)

bearbull.jpg

What is the best strategy during this bearish market.

The best strategy is to hold your tokens, do not sell at a loss, do not sell for peanuts, and add to you positions by "dollar cost averaging" or adding "new money" into the market. Continuously buy at the lower position. so when the market comes back up you have something to sell.

To truly prepare for the bear market you should develop and follow a bull market strategy that you can live with. Below is our bull market strategy in a nutshell, see if this can work for you.

Crypto Autonomy's Bull Market Strategy?

Plan your liquidation process. Determine how much you want to withdraw from your profits. The key is to plan the withdrawal process without hurting your overall crypto value. These would be cryptos that have surpassed a certain dollar threshold, that if you sell a some, you wouldn't feel it because the remaining tokens will continue to grow and rise in value.

When the cryptos reaches a new all time high (ATH), we start a small liquidation process. As the coins continue to climb up and break a new ATH records, we continue to withdraw a planned amount until we reach our maximum desired amount.

Example: Below is an example of our EOS withdrawal strategy from one of our portfolios. As you can see, we started with 1000 tokens and we started the liquidation process when EOS reached $5.00. Our desire was to realize $1000.00 from this portfolio and hold in tether.

simple guide.jpg

As you can see from the graph each time EOS went up $1,00 we withdrew some tokens decreasing the quantity as the value went up by $1.00. In total we withdrew 155 tokens from the original 1000 tokens. When the value hit $10.00 our portfolio was worth $8450.

However, If we simply withdrew $1000.00 when it hit $5.00/eos, we would have had to withdraw 200 tokens and our portfolio would have been only $8000.00 when EOS hit $10.00.

For the record EOS reached $16.62, but we stopped withdrawing when we reach our goal of $1000.00. So we stopped withdrawing at $10.00.

3.Repeat this process on your best preforming cryptos and tether your withdrawals.

You should do this at different stages of the coin's all time highs so that your withdrawals will not hurt your portfolio's growth strategy. This strategy ensures that you are saving up for the rainy days, for example, emergencies, ICOs, and new projects on exchanges. You do not want to be selling your coins when the market is low or you are at a negative. It is best to take your liquidity and tether it or put it in a recession proof coin.

Remember to fall in love with profits more than the projects.

ledger.gif

What happens in a bear market? Do I get burned?
Yes and No. While you will see your portfolio going down, as long as you do not sell, you will not lose. Also, if you did not prepare for the bear market by selling when your profits were high, you will feel a lot of regret. Do not give into FUD. The market will go back up. Must have strong hands.

To reduce your anxiety and stress during this bear market, you should switch your thinking. You see, the bear market is actually a blessing in disguise. It's a common misunderstanding but it is actually the bear market makes you rich. Why? During the bear market the projects that we have been looking at and too afraid to buy, allows us to finally get in at very low prices. Sometime these prices can even go below the ICO price. Expect 60% - 80% sales from your favorite cryptos. Start buying when it hits 60% and continue to buy positions as it continues down. Projects that were unreachable last month will be on sale so make sure you get lots and lots of volume. During the bear market the best strategy is to accumulate, accumulate, accumulate.

Remember to research before investing and do not invest with scared money. This is not financial advice but educated speculation. FOLLOW YOUR OWN RULES FOR INVESTING

rules1.jpg

If you find this information useful please

UPVOTE = so I can get paid... Truth!
COMMENT = so you will get paid... Truth!
FOLLOW = so we can keep getting paid
RESTEEM = so others can pay us. lol

Thank you for your participation,

Best endeavors!
steem.png

Sort:  

nice explanation on bear markets! thanks!

Coin Marketplace

STEEM 0.30
TRX 0.12
JST 0.034
BTC 63877.55
ETH 3143.56
USDT 1.00
SBD 3.97