That flash crash a little over a week ago was something huh? And retail did not go in and buy but the pros did. That got us wondering. Did retail not buy out of fear? Or out of a lack of a good plan on how to react to unusual events like this?
So today, we are going to map out our crypto strategy for the next 90 days taking us through to almost the end of the year. What do we expect? What do we find important? How will we trade it? Find out today!
Where We Are Right Now
What happened on Black Monday is looking more like a leverage-based liquidation to crush short-term traders. A flash crash. It looked like whales and long term traders working to inflict max pain on those thinking crypto will just “number go up” without interruptions. And honestly markets around the world are in a relatively fragile place.
Inflation all over, including typical low inflation environments like the UK and the US, means people have less money to invest. The EU has been in recession. The US fears it may be in one now or very soon.
Source: X
Black Monday saw a huge drop and shakeout of leveraged traders around the world. But crypto markets recovered quickly. So where do we go from here? That’s what we will discuss in the rest of this video.
Fundamentals Still Matter
The fundamentals of the projects you like still matter. And for most projects, that hasn’t changed. There are a few like Ronin with their recent hack that had project-specific news affecting their performance. But most just fell due to a flash crash affecting the entire market. Did their fundamentals really change? If you liked:
- SOL for its memecoins.
- TON for its easy onboarding from Telegram.
- Akash for AI computing.
- Ondo for RWA platforms.
Has anything changed in those platforms? The answer looks like it is No. The more important question for YOU is do you know the answer to that question? Are you following your investments to see if there are any major changes going on there?
Because you should be. It is NEVER wrong to sell your position in an alt when their “story” changes. When the fundamentals change bringing something new into the equation. Did something change like that for most during the flash crash? No, but they went down anyway. And that can mean good buying opportunities for the projects you know best.
DCA Still Most Effective
Using DCA is still the most effective way to play this market. Small, regular investments. Look at Bitcoin for the last 2 months. It’s been a little bit all over the place. Had you just bought to HODL 2 mo ago in Mid-June, you’d have bought at ~$70,868 with today’s price at $59,870, so you would have lost $$. Around $11,000 for every Bitcoin you bought then.
But with DCA, it’s a different story. Because we are buying more when prices are lower and less when prices are higher, we can make more $$. In early to mid-June at 70k, we buy less. But at the recent lows of 54k on July 5 or $49,780 on Aug 5, we get to buy more.
That $10,000 gain off the recent low ALONE can make your DCA into Bitcoin over the last 2 months profitable. Check out this example on the screen. In the last 2 months, with a simple buy and hold for $2000, you would have lost almost $400 or 20% from $2000 down to $1619. But buying the fluctuations at many different prices here means we accumulated more Bitcoin. And that’s the goal right?
Buy and hold you bought 0.0282 and with DCA you bought 0.0314. So you got 10% more Bitcoin for the same $2000. Plus, you lost less. Your total value is $1878 instead of $1619. You did MUCH better with DCA and you lowered your average Bitcoin buying price this way too. Here is a summary chart:
As markets remain volatile, this is still the safest long-term method for buying your favorite projects.
Low Risk Picks for the Rest of 2024
The lowest risk pick over the next 90 days without a doubt is Bitcoin. Rumors are swirling that other countries will join El Salvador in adding Bitcoin to their national Treasury. And if that happens, you can bet that game theory will kick in, and FOMO too. Others will join in not wanting to miss out.
Source: X
Plus, during Black Monday, retail/small investors didn’t buy but institutions and whales did BIG TIME. Global liquidity is on the rise. And when it is, Bitcoin benefits the most.
Sui is another really good choice here. The Grayscale Fund announcement of a Sui Fund is going to raise the profile tremendously. We like the project a lot. In fact, there is only one thing in this project we don’t like. It has a low circulating supply. Out of a 10 billion total supply, only 2.5 billion circulate. It’s the only main thing you have to watch out for besides a black swan/isolated event.
One last low risk pick we like is Akash. You know we’ve written about this project a lot in the last year. But it has gotten hammered the last 3 months. It’s down almost 60% with no huge changes happening in the project. It got hit hard in the big flash crash but we just see a big discount.
Source: X
Instead of almost $6 where it was 3 months ago, now it’s at $2.70. It’s worth taking a look.
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.
