When you buy Crypto there is a lot of talk about the Diamond Hands and Strong Hands . This means that when you buy a coin you are holding it longterm and dont sell it. Some People say that they never sell! There are even People in this Space who have massive gains made in Bitcoin in the past but refute to Cash out since they dont trust the US-Dollar. Some say you didnt make a loss if you dont sell and that some coins will go to a price of 1 Million $ for sure…
The opposite is Weak Hands, Cabbage or Toilet Paper Hands. This means you are selling by the smallest retraction of the course, to cut your losses, buy high – sell low is another analogy for this Term. Both of this extremes have their ups & downs, both are not working out so well in many cases. You dont want to be the guy who paid 10,000 Bitcoin for a Pizza, neither you wanna be the Dogecoin Millionair who gets his networth cut in half after Elon Musk appears on SNL…
You need to make a Plan and then stick to it and execute it! The recent Market Manipulation using the excellent executed Whyckoff Distribution Sheme is showing that the ones that used it can rely on fear and greed in the Markets, that human emotions take a big part in how they are making decisions. Until the Crypto Market is not as volatile as it is in the past and we find reliable Stablecoins, have more Adoption and can use our Coins on a daily Bases with merchants or to pay our rent, the mentioned tactics stated above makes no sense to me. As always Diversification is King!
So if you wanna buy some coins and get into crypto there is a few things you can do to protect your Money and maximise your gains(if you need help with some terms mentioned here that you dont understand check our Blockchain Dictionary):
- Dont chase the Hype! If something has already made a good move, dont try to catch up or you are gonna hold the Bags
- Understand Liquidity, if you Portfolio Tracker shows nice Big Numbers is cool, but if you wanna cash out and get rekt by Slippage you may not standing as good as you think you are.
- Learn how Big Traders use Stop Hunts and Liquidity Pools for example in Crypto Creds Trading Tutorials
- Learn the Market Cycles and dont try to catch the bottoms or tops, have your emotions under control
- This means you make a Plan and Stick to it, which involves DYOR as well as understanding Marketstructure and Market Psychology
- Find strong Projects with good Value and Usecase. Understand Fundamentals and Pumpamentals and the difference between it.
- If you wanna use leverage, dont overleverage, always over collaterize!
- Take Profits! On the way up and on the way down! Never sell everything! Its allways nice to take your initial Investment out and then let it run and see where it takes you, but take Profits from Time to time 10-20% regular is a good choice. You can put them in Stablecoins and Farm with it if you dont wanna cash out.
- Be Happy for you gains! Respect the Pump in all assets and dont overthink about “What if”
Here is another very Useful Link to a Thread on Twitter where you can learn more about how the Crypto Cycles work: SecretsOfCrypto Thread but most important is that you have a Plan and execute it! Dont change it to much, you allways need to adapt somehow but stick to your plan when you think you understand this market and you will be rewarded for it! Offcors you just can DCA and hodl forever but if you prefer a more active approach we have made something that can help you:
Under the Link above you can find a calculator that helps you make a allocation for your Portfolio: https://blockchain-roadmaps.com/ape-calc.html
- Choose some Network-Tokens, this are tokens which are used in Crypto Networks like Bitcoin, Ethereum, Binance Coin, Matic/Polygone, xDAI, AVA, SOL ect. This are the TOkens with the Biggest Market Caps and they will most likely therefore not have the most upside but will be relativly reliable in their growth since many other Projects depend on them and add Value to the Ecosystem.
- Choose some Bluechips that have proven themself and are often copied but the copys never get the Success of the originals since they lack innovation and longterm Vision or dont have the Partner that the original has. Examples in this case could be: COMP, UNI, MKR or Aave, Synthtetix, YFI
- Add some Projects that have not a medium Market Cap, this Projects have more ability to grow. You need to make your choice on how they performed before and how good you think they will perform in the future.
- Same goes for Projects with low Market Cap, these have the most potential of growing, but keep in mind that Projects that staying long term low Market Cap may having Problems adapting to the needs of the Markets. Risk and Rewards are higher here…
- Optional you could add some Money to Yield Farm with the Aggregator of your Choice like YFI, StakeDAO or similar
- If you wanna have some Powder for buying dips or ape in to new opportunitys you should add some Money to your Apechest or Ape-Treasury
Look for a Balanced Portfolio according to the Risk you wanna take and be sure to have a Plan to exit as well and stick to it! Remember also that Bitcoin usualy outperforms most coins in the Top 100 in a Bear Market. Check Status of Altcoin-Season here!