Have you missed the crypto bull run train? During a crypto bull run is the moment when I can reap the rewards of my right investments. But how can I make sure that I have a good setup just before the bull run?
I need a good plan to make this work so that I can get my hands on these rewards. That’s why, today, I will elaborate on a couple of steps I take that will get me to these rewards. It’s like a roadmap to success. So, before you can be successful, you need a plan. Here is my plan, so I do well during the next crypto bull run.
1) Set Up a Watch List
I’m not planning on any short-term plays, like trading or arbitrage. My plan is for the long term, to build a solid portfolio. So, my first step is to orientate myself. Where are we right now?
Where do you think we are in the market cycle? pic.twitter.com/HxlEAg9HpU
— Route 2 FI (@Route2FI) June 24, 2022
Well, we’re still accumulating. The current uptrend is nothing compared to a real bull run. This picture by Miles Deutscher clearly explains this. In other words, we’re in the accumulation phase.
So, my first step is to set up a watch list. I look at the narratives that interest me. In my case, that’s, for example, the Cosmos ecosystem and RWA’s. Here’s where I start to investigate projects. Altcoin Buzz’s 4-part series on free crypto tools is helpful for this.
Start with a small list and keep adding coins or projects along the way. My current list includes, for example:
- Cosmos (ATOM).
- Akash (AKT).
- Injective (INJ).
- Kujira (KUJI).
- Jackal (JKL).
- Goldfinch (GFI).
- Centrifuge (CFG)
You can use the portfolio option on CoinGecko, or an Excel sheet. There are plenty of options out there.
2) Record your Journey
So, you saw that I don’t jump in blindly. I do my diligent research. I’m sure you’re familiar with this abbreviation, ‘DYOR’. It means, ‘Do Your Own Research’. And so I do. But, once you start adding projects to your list, it’s easy to lose the oversight. Now, I have a great and simple tool for this. It’s a simple Excel sheet. This is where I list all the coins, I deem worthy. In other words, they passed my research process.
But that’s not it, I add all kinds of extra information. For example, why I like the project and what are potential risks. I also include things like the ticker, how long I plan to hold them, their size, and their ecosystem.
Do your own research, or DYOR, is a common phrase used in crypto investing and trading.
But what exactly does “doing your own research” entail?
Learn why and how people DYOR.https://t.co/nJLfvmsvCx
— Binance Africa (@BinanceAfrica) November 28, 2023
So, I have two lists, one of the coins I plan to buy and one ‘watch’ list. Coins with good potential. I often upgrade or downgrade coins between these two lists. Don’t be afraid to do this. For samples of portfolios, you can watch one of our three portfolios. (A, B, C)
Other times I make a SWOT analysis. The four letters stand for:
- S = Strength
- W = Weakness
- O = Opportunity
- T = Threat
By using this, you get a more in-depth understanding of the project.
3) What Is the Size of Your Position
The size of a position is different for each person. Whatever works for me, may not work for another person. I may like gaming projects, but somebody else may not like them at all. However, I can give some general ideas here.
I start by weighing my preferences. For this, I look at sectors. For example, Cosmos, privacy, exchange coins, AI, or gaming. So, my list looks like:
- Cosmos (40%).
- AI (30%).
- Privacy (20%).
- Exchange coins (10%).
Another option is to use weighting by market cap. For instance, Now it’s time to determine entry points.
Portfolio allocation all depends on portfolio size
Small portolio should be high risk
Bigger portfolio should be less risk
I know crypto is risky in itself but what I mean with it is this:
If you have a bigger portfolio you want to also pay attention to preservation of… pic.twitter.com/YZOAa66Fu9
— RVCrypto (@RvCrypto) November 28, 2023
4) Entry Points
There’s a simple rule in crypto, buy low — sell high. Don’t mix these two up! So, look for a price that is a good entry for you. You may want to look for some TA advice. This allows you to see where the best entry points are. Furthermore, I make sure I follow the price development of a coin. When there are dips, they are good moments to add to your bags.
What I like to do is to set limit orders on an exchange. For example, let’s say the Atom price was at $8, but I expect it, or hope, that it will drop to $7.50. That way, I’m covered by setting a limit order. An advantage is that you don’t need to check on limit orders as much. They sit there and wait. Limit orders are patient.
Another option is to use DCA (Dollar Cost Average). Now you set buy orders with a specific amount and time frames. For instance, every week or month. That’s regardless of the price. For example, each month $100 on ATOM.
5) Keep Stablecoins in Reserve
Another thing I never do is put all my eggs in one basket. That’s why my portfolio is diverse, in many ways. For example, weighting, or different sectors. But even now, I keep a bag full of stablecoins to the side. I want to have that ready to deploy when I want to.
For example, some projects haven’t even launched. They may enter the crypto space in a few months from now. So, I want; to be able to enter into that project. I always try to keep an open mind, so I can change positions if needed. And don’t marry your bags. Have a good profit-taking strategy! But that’s a video for another time.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
