Experienced crypto analyst shared the most important buy-sell-hold strategies and psychology for Bitcoin and altcoin investors. Cryptocoin. com, we are processing the details of the subject in 6 titles that we have compiled.
6 important strategies for bitcoin and altcoin investors
The analyst recommends that investments be made with money that will not be needed. The worst thing to do is to allocate 100% in crypto because you may need to sell your position at the worst time ever, perhaps at the bottom of a cycle. In summary, the analyst recommends a two-year vesting period for any fund devoted to cryptocurrencies.
Always dollar cost average: Even professional traders are swept away by fear of losing (FOMO) in the urgency of establishing a position as soon as possible. A DCA strategy (long-term expectation) consists of buying the same amount of dollars every week or month, regardless of market movements. In this regard, the analyst says that he should not hesitate to buy positions in less than three or four weeks, and that the crypto is still in the adoption phase.
Do not use too many indicators when analyzing
There are numerous technical indicators including the moving average, Fibonacci retracement levels, Bollinger Bands, directional movement index, Ichimoku Cloud, parabolic SAR, RSI and more. The best traders are experienced enough to know that reading the market correctly is more important than choosing the best indicator. According to the analyst, simple analyzes always lead to clearer results.
Find out when to step aside: You’ll be misreading the market when you’re finally finding bottoms or alt seasons. Every trader is wrong sometimes and there is no need to compensate by immediately increasing the trade size to compensate for the losses. After each reversal, the analyst recommends stepping aside for a few days. The truly successful traders are not the most skilled, but the ones who survive the longest.
Keep investing in the winners: As discussed earlier, the crypto market is known for its volatile prices. Therefore, aiming for a 30% gain will not cover previous (or future) losses. The analyst recommends buying more of them rather than selling the winners. This trend can be shaped by market data or general sentiment. Adding to the position may be considered until the overall market signals some kind of weakness.
Every rule is meant to be broken: In this thread, the analyst advises not to blindly play on cryptocurrencies or the investment advice of seasoned money managers. Everyone has their own risk appetite and capacity to add positions after an unexpected setback. But more importantly, it should be ensured that the accounts are well kept along the way.
