Knights of Daro — [18th Dec] Office Hours
To reach financial goals, one should have a strategy which should be followed with complete discipline & consistency.
This is also called investment philosophy. An ideal investment philosophy should help you achieve your goals along with peace of mind.
Don’t you have one for yourself?
Here’s how you can design one….
DEFINING BUYING RANGE -
The range where one usually buys a coin/token at a price they feel is cheaper, in order to book profit in future.
For eg- Buying range for one for BTC could be $20K-$25K and they could sell it once the BTC price goes 2x or 3x.
Various strategies to buy in BUY RANGE is as follows-
STEP 1 — In bear market some people usually buy as shown below-
They double their MPI ( money put in) after every 50% drop.
STEP 2 — Some people start buying after 80% drop when the bear market comes-
MPI is 2x’ed after 80% drop and then 2x’ed after every 50% drop after that.
STEP 3 — Personally in the bear market, i follow this strategy-
STEP 4 — In the bull market, i personally follow this strategy-
*Also i would have invested on a weekly basis to dollar cost average.
For example if you see the chart below of ETH in 2018-
In the eth chart above, I would’ve bought it weekly where ETH’s price was fluctuating between “$74-$284”, since it dropped by more than 80%.
The key is to double the MPI(money put in), the lower it dips in your buying range.
DEFINING SELL RANGE -
Sell range is where coins/tokens are usually sold in order to book profits.
“Sell range” varies from person to person depending upon their goals, risk appetite and expected returns-
Couple of sell strategies could be-
- Selling 50% of coins/tokens at 2x and selling 5% at every 3x, 4x etc.
- Selling 50% of coins/tokens at 2x and then 10% at every 4x, 6x, 8x etc.
Personally, I follow this-
IN BULL MARKET-
- Sell 50% of tokens/coins at 2x and then 5% at every 3x,4x etc.
IN BEAR MARKET -
- Sell 50% at 2x and then sell the rest of tokens/coins in the bull market.
- If another 30%-40% price drop happens, we can then buy again.
- Shortlist coins/tokens you’ll buy.
- Put support and resistance level.
- Decide levels at which you will buy.
- Money to be invested at each level.
- Place “buy” orders accordingly and forget about it.
ARE STABLECOINS GOOOOOOD?
Short answer, YES, they definitely are, here’s why-
- They don’t crash in the bear market, but they crash in the real world.
- Can be used to cash out and hold fiat positions.
- Since USDT is pegged to USD & the USD/INR chart below shows how INR has been losing its value consistently to USD.
Therefore, holding USDT itself for over a long period of time can give good returns-
- At any given point of time stablecoins is 10%-15% of the total market cap.
Once the market crashes, the money starts to move to stablecoins and the above percentage increases.
HOW TO BUY ASSETS WITH ASSETS
Here’s an APPROACH which you can mimic by understanding the LOGIC & REASONING behind it first, otherwise it might get you REKT.
FOR EG- let’s say somebody has $48K to invest and can either buy 1 BTC or 12 ETH out of it.
What they could’ve done here is-
1. Use that $48k to buy 1 BTC.
2. Buy ETH from BTC, when ETH/BTC was 0.02.
3. Buy BTC from ETH when ETH/BTC got 0.06.
4. Move money from BTC to USDT etc.
This way you could’ve bought 3 BTC out of those ETH instead of letting it sit idle in your wallet.
After buying 3 BTC you could’ve moved money BTC to USDT and buy BTC again when it gets in your buy range and repeat the same.
We’ve got bonus for you -
After buying 50ETH from 1 BTC in the above example, you could’ve achieved even higher returns-
- Could’ve bought BNB from ETH once when BNB/ETH became cheaper.
- Then could’ve bought FTM from BNB when it FTM/BNB became cheaper.
- Could’ve bought UNDEAD using FTM when UNDEAD/FTM became cheaper.
- As soon as UNDEAD/FTM price 2x, could’ve bought back FTM.
- As soon as FTM/BNB price 2x, could’ve bought BNB.
- As soon as ETH/BNB price 2x, could’ve bought ETH.
- As soon as ETH/BTC price 2x or 4x, could’ve bought BTC.
- Buy USDT using BTC and using USDT to buy the dips.
Here’s how you could’ve made 32X or more instead of letting your BTC sit idle in your wallet.
If you want to learn how to generate trustfree ROI then you may like what we’re doing at Fidaro.
Here are some useful links to save and reference. Let’s go and help you achieve your goals.