Buying the bottom can lead to generational wealth.
But how can you know when it's the right time to invest?🕐
Here's your playbook to buy the bottom and prepare for every scenario:
But how can you know when it's the right time to invest?🕐
Here's your playbook to buy the bottom and prepare for every scenario:
BTC's price bottom has historically been followed by a few months of extremely low volatility.
Yet in a fast-changing industry like this, things might play out differently this time.
Without further ado, here's my accumulation strategy for long-term investments:
Yet in a fast-changing industry like this, things might play out differently this time.
Without further ado, here's my accumulation strategy for long-term investments:
1️⃣ Relative Strength Index (RSI) key levels
I'll say it frankly:
I'm not a big fan of using Technical analysis for making investment decisions.
RSI on the weekly timeframe, however, has been one of the most accurate indicators for buying signals in past bear markets.
I'll say it frankly:
I'm not a big fan of using Technical analysis for making investment decisions.
RSI on the weekly timeframe, however, has been one of the most accurate indicators for buying signals in past bear markets.
How I use it: 📚
I consider an asset oversold when the RSI is <35 on the weekly timeframe.
Let's look at the BTC chart.
As you can see in the image below, the price dropping below the 35 level marked a bottom the last 3 times.
(The blue line represents the 35 RSI level)
I consider an asset oversold when the RSI is <35 on the weekly timeframe.
Let's look at the BTC chart.
As you can see in the image below, the price dropping below the 35 level marked a bottom the last 3 times.
(The blue line represents the 35 RSI level)
To track the RSI for the tokens I want to buy, I use TradingView.com.
Whenever the RSI for one of these tokens is in oversold territory, I start DCA heavily on a daily basis.
This strategy has paid off so far.
Still, past performance does not guarantee future success.
Whenever the RSI for one of these tokens is in oversold territory, I start DCA heavily on a daily basis.
This strategy has paid off so far.
Still, past performance does not guarantee future success.
2️⃣ GLP as a crypto savings account
No one really knows where the market is heading next.
To get exposure to blue chips (BTC, ETH) with low downside risk, I buy GLP on @GMX_IO to also get GMX trading fees.
GLP -consists of an index of assets used for swaps & leverage trading
No one really knows where the market is heading next.
To get exposure to blue chips (BTC, ETH) with low downside risk, I buy GLP on @GMX_IO to also get GMX trading fees.
GLP -consists of an index of assets used for swaps & leverage trading
Why low downside risk?
GLP yield will partially offset the loss I'll incur if the BTC & ETH prices fall.
For context, GLP holders on Arbitrum earn 30% APY right now.
In the same period that ETH decreased 19%, GLP price took only a 7% hit. (without considering trading fees)
GLP yield will partially offset the loss I'll incur if the BTC & ETH prices fall.
For context, GLP holders on Arbitrum earn 30% APY right now.
In the same period that ETH decreased 19%, GLP price took only a 7% hit. (without considering trading fees)
1. If prices go 🆙, I'll benefit from the exposure to the assets from GLP composition + trading fees.
2. If prices go 🔽, the trading fees will cover my loss.
If I decide to go risk on, I'll sell my GLP (which outperformed the market thanks to the high yield) to get dry powder.
2. If prices go 🔽, the trading fees will cover my loss.
If I decide to go risk on, I'll sell my GLP (which outperformed the market thanks to the high yield) to get dry powder.
3️⃣ Set limit orders
Altcoins declined >95% from ATH during the last bear market.
Until now, most altcoins are down 85-90%.
If the history repeats then there's more pain to come.
But as we saw after FTX collapse news, most altcoins made fast a V shape recovery.
Altcoins declined >95% from ATH during the last bear market.
Until now, most altcoins are down 85-90%.
If the history repeats then there's more pain to come.
But as we saw after FTX collapse news, most altcoins made fast a V shape recovery.
That's why I suggest you set limit orders at key prices.
Sadly most DEXes don't support limit orders & CEXes aren't a very secure place to keep your funds.
In order to minimize risks and potential losses, I recommend you split your limit orders between more than one exchange.
Sadly most DEXes don't support limit orders & CEXes aren't a very secure place to keep your funds.
In order to minimize risks and potential losses, I recommend you split your limit orders between more than one exchange.
Limit orders at what prices?
I use TradingView to determine this.
I mark the price levels where the price met resistance multiple times with a blue line. (on the daily timeframe)
After that, I set limit orders at these price levels as they may mark a local bottom.
I use TradingView to determine this.
I mark the price levels where the price met resistance multiple times with a blue line. (on the daily timeframe)
After that, I set limit orders at these price levels as they may mark a local bottom.
4️⃣ Avoid highly inflationary tokens
The negative effects of high token emissions begin to be seen in bear markets.
That's why I invest for the long-term only in tokens with >30% of the supply in circulation.
Now it's time to look for tokens with sustainable economic models.
The negative effects of high token emissions begin to be seen in bear markets.
That's why I invest for the long-term only in tokens with >30% of the supply in circulation.
Now it's time to look for tokens with sustainable economic models.
That's it!
My hope is that this playbook will help you improve your investing strategy.
If you found this thread helpful, please leave a like and retweet the 1st tweet. 🤝
My hope is that this playbook will help you improve your investing strategy.
If you found this thread helpful, please leave a like and retweet the 1st tweet. 🤝
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