At its simplest then, this strategy involves buying when the price is lower than the last high. At its most complex, it involves studying charts, paying attention to short term and long term moving averages on different time scales, identifying historical support levels, and laddering buys. Whatever your level of skill is however, the concept is generally the same.

While it is enticing to attribute the underwhelming trading volumes to the decline in the underlying assets’ valuation, some observers point out that the two are actually tied in a kind of an egg-and-chicken cycle, mutually influencing each other. As early as in January, when a multitude of versions explaining the crash of Bitcoin price began to emerge in media space, one of the less-visible yet sound considerations was that futures trading had opened the crypto markets to bear investors.

This leads to what’s known as a bank run, where the bank fails because it is unable to fulfill all the withdrawals customers demand. This can escalate quickly into a systemic bank panic, where multiple banks begin to suffer the same fate. Each successive failure compounds the collective panic, and quite quickly, the whole system can begin to collapse like a house of cards.


All in all, I think the same factors I wrote about in my last article are still true now, and my overall outlook on the crypto market is still positive. Assuming you agree, and that you have some available funds to throw at the market and forget about for the next several years, here are my investment strategy principles laid out from top to bottom according to their importance.
I’m not saying that HODLing won’t make you great returns in the long run – in fact, I firmly believe it will. However, by taking profits when an asset’s price is high and buying again when it’s low, your HODL position only becomes worth more and more. That being said (and assuming you bought in absolutely convinced of the long-term perspective of your holdings), never sell all your holdings when taking profits.

Just like any other currency, you have to have a place to store your Bitcoin, or more accurately, store the private keys you can use to access your Bitcoin. These aren’t the type of wallets you buy at Target, though. The software comes in many different forms, most of which can be downloaded on your smartphone, tablet, or computer desktop. Here are the different types of wallets:
For investors interested in diversifying into this space I recommend a simple strategy. First, invest only what you are willing to lose. For most this is <1% of their portfolio. Second, spend a massive amount of time understanding the space and the particular asset you are buying before making the purchase. We don’t recommend trading in and out of these assets, so it’s best if you have a strong thesis that can govern your investment decisions. This will not only help accelerate the learning process but will help create a healthier market with a better informed investor base.
You might buy in to your Ethereum position at $1000, you set your sell position $1300. Your sell order could take days, weeks, months, years or till the end of time to be filled. Once it has been filled, you then take that profit and you roll it over in to a new buy over at, say, $1100. Choosing good targets for your buy and sell orders is crucial if you want to be a successful swing trader but overall swing trading cryptocurrency is pretty easy – set your orders and then just wait.
To the other point, gold’s coveted status in jewelry is merely a derivative property of its perceived value, which leads to its designation as a status symbol. Without that underlying perceived value, it would command far less value in jewelry. Consequently, the question still remains about the gap between the industrial and medical value of gold and the actual value of gold as determined by the market. Where does the value in that gap come from?
This is an extraordinarily difficult feat to accomplish, however, as the more people there are mining bitcoin, the harder it is to take over the network. At the current worldwide mining rate of almost 5 billion gigahashes a second, it would be extraordinarily difficult for even the most powerful organizations in the world (e.g., large-scale governments) to mount a successful 51% attack. It would be enormously costly, and quite possibly more financially detrimental to the attacker than to the network.
If you can figure it out, use MACD (the divergence and convergence of moving averages) to help you understand if we are in a bull or bear market, and to help you understand why the price just dipped or shot up. Other indicators are very useful, but MACD is particularly useful for the tactic being discussed because it gives you a quick visual of the current trend.
Hey, Will, I like this! Thanx for the info. I’m somewhat new to cryptos but not to investing — my Dad invested in the stock market since I was a kid and as an adult I was a registered investment advisor representative for a large US institution. One conclusion I’ve come to is that the skills and approach for crypto investing are no different than those for the stock market. I use the same strategies and analyses I use for stocks and etf’s and feel completely at home in the crypto market. Yes, I deal with more brokerage accounts, etc., but the principles are the same.
While the number of companies and industries that allow cryptocurrencies to be used to pay for goods and services is constantly increasing (you can use Bitcoin to pay for some things on Expedia and Microsoft, for example), the vast majority of people who buy Bitcoin or other popular cryptocurrencies still primarily use them as long-term investments. Cryptocurrencies are a new market (Bitcoin was first introduced less than a decade ago) and therefore an extremely volatile investment. In this pricing graph from Coindesk, you can see how the price of Bitcoin has fluctuated since it first debuted almost a decade ago, down to daily changes in value.

The shares of each Vehicle are intended to reflect the price of the digital asset(s) held by that Vehicle, less fees and expenses. However, none of the Vehicles currently operates a redemption program and any Vehicle may halt creations from time to time. As a result, there can be no assurance that the value of a Vehicle’s shares will approximate the value of the applicable digital asset(s) held by that Vehicle, and indeed, in cases where shares are transferable, they may trade at a substantial premium over or discount to the value of such assets. Moreover, the prices of the underlying digital assets are derived from third-party indices and reference rates, and no assurance can be given as to the accuracy of these prices.
You’ll find that different exchanges cater to different markets. Today, most countries have at least one cryptocurrency exchange specializing in their own currency. There are exchanges that can accept New Zealand Dollars in exchange for bitcoin, for example. Other exchanges are known for certain pairs. Bithumb, for example, has particularly strong liquidity in the ETH/KRW (South Korean Won) pair at the moment (and it’s easily the most popular cryptocurrency exchange in Korea).

Also in March, it suddenly emerged that the abovementioned startup Crypto Facilities has been offering futures contracts tied to Ripple’s XRP token since October 2016, without much publicity, for some reason. On May 11, Crypto Facilities exploded another bombshell in the crypto space, revealing ETH/USD futures as their latest offering. And to crown it all, in June the same company unveiled the first regulated Litecoin futures.
It took us only several years to achieve the things that no one has ever managed to achieve: we’ve created a highly productive universal wealth management company able to provide principal clients with the services of the highest quality possible and possessing an exclusive set of investment products. We are currently collaborating with about 20,000 clients and opening 30-50 new investment accounts daily.
If someone steals your Trezor, they won’t be able to find your coins either, as they’re protected by a PIN that only you know (plus a password if you want to use that feature I mentioned above). You can also recover the coins yourself with the recovery seed the Trezor will give you the first time you use it, which you should store in a super safe location like a safe deposit box somewhere. If you don’t use utilize the password feature, however, keep in mind that anyone who discovers this recovery seed instantly has access to all your coins, and all your other forms of security are for naught. If you enable the password feature, however, they will need your password as well as the recovery seed in able to access your cryptocurrency, which makes it significantly more secure.
It is important to note that the use of Zcash is not just for cybercriminals who engage in illegal transactions in the dark web. There are a number of legitimate reasons why a user would opt for anonymous cryptocurrencies such as Zcash, including a couple who are into eye-brow raising bedroom toys; an entity who would like legal services for a private matter like bankruptcy; a company who would like to protect its trade secrets or supply chain information from competitors; an individual with a chronic medical condition who would like to buy his pills online anonymously; etc. These are all examples of individuals seeking anonymity for privacy reasons.

Here’s what I started with a little over a month ago. I put in ~$500 AUD for 0.0572btc. Bitcoin was around $8000 AUD at the time. The 0.0139 is the 24% payout i’ve received since then and is currently worth $310 AUD with BTC sitting at $22600 AUD. This payout will continue until it reaches around 140% and the lending contract expires. It’s recommended to take out your initial investment as soon as you can (about 3 months) and then keep lending out the money that’s leftover and grow it from there for free essentially.
Under the Bretton Woods system, numerous foreign governments held US dollars as an indirect and more convenient method of holding gold, as US dollars were supposedly directly exchangeable at a fixed rate for gold. However, by 1966, gold reserves actually held by the US were already pitifully low, with only $13.2 billion worth of gold being held by the government.
Ofir Beigel, CEO of 99bitcoins.com, suggests taking a slow burn approach to the cryptocurrency market if you’re looking for the best return possible. “Keep in mind there can be a lot of ‘noise’ in the background, like short-term bad news that lead to a crash,” Beigel says. “The key is to find investments you believe will yield after X time according to your targets, and to try detaching yourself from the short-term noise.”

Be skeptical of the hype. According to Welch, “in every way, the cryptocurrency market is a flow of supply and demand.” It’s one of the reasons it fluctuates so wildly. “When you see a lot of hype and excitement around a volatile investment that depends on supply and demand, take pause and look at what’s really going on.” He advises to take caution when you start to hear phrases like “get it before it’s gone” and “you won’t want to miss out on this.” A lot of hype can often be the precursor to a crash.

If you have mastered the points of improvement we focused on in the Guide for Early Beginners, one important point of improvement to focus on is testing and evolving strategies. Because you are at this skill level, you have enough knowledge, experience, and know-how in the cryptocurrency market to be able to test different trading strategies, and make edits to best fit the current market trends. Similarly, in order to guarantee better results, playing with and mastering different strategies is crucial.
•	You don’t necessarily need to understand MACD, RSI and Bollinger Band, the algorithms that help you decide if your currency has peaked or bottomed – though every bit of extra information can help move away from gut instinct to informed decision-making. But if you want to become a pro, maybe learn a bit of technical analysis (i.e. interpreting chart patterns). It works most of the time, though we’d say you should throw in a bit of fundamental analysis (i.e. contextual assessment) for good measure

It can do this by making the problem more or less difficult, by requiring more or less zeros at the beginning of the output that solves the problem. The more zeros that are required at the beginning of the output, the more exponentially difficult the problem becomes to solve. To understand this why this is, click here for a reasonably good explanation.
I have been a crypto skeptic and don't really buy the "new asset class" argument. But this is not going to develop in a linear fashion. It is going to explode in terms of use when certain enabling conditions are met. Too important to write it off. Even if these discussions don't have much that is revelatory to the well informed on the subject, they still provide clues as to directions to follow for derivative trades that are a function of the disruption ahead.

When a coin has just skyrocketed by 300%, take profits. HODLing everything after such a major run-up is greed, nothing more. I’ve made this mistake more than once, thinking that it’s completely rational that since a coin’s value has gone up by that much, it will probably continue that way. It won’t. There will always be a correction. When you see a major run-up, like the one in December, it’s wise to start taking profits. How the hell can you buy the dip if you have nothing left to buy it with?


Finally, my personal preference is to avoid keeping all my eggs in one basket. Despite the fact that a hardware wallet like Trezor is technically one of the most secure options for keeping your coins safe with a fair amount of redundancy in recovery options, the fact remains that one day I might somehow lose access to my coins held within Trezor. I might suffer a concussion, for instance, that causes me to forget the password or the PIN required to access the Trezor, or perhaps I lose my Trezor and am unable to locate or decipher my recovery seed.
While the number of companies and industries that allow cryptocurrencies to be used to pay for goods and services is constantly increasing (you can use Bitcoin to pay for some things on Expedia and Microsoft, for example), the vast majority of people who buy Bitcoin or other popular cryptocurrencies still primarily use them as long-term investments. Cryptocurrencies are a new market (Bitcoin was first introduced less than a decade ago) and therefore an extremely volatile investment. In this pricing graph from Coindesk, you can see how the price of Bitcoin has fluctuated since it first debuted almost a decade ago, down to daily changes in value.

It has nothing to do with a well-thought-out investment strategy that will take into account elements such as company results or factors that may affect the stock performance. It is also impossible to pick an appropriate investment strategy without analyzing the investors’ risk tolerance, i.e. the level or amount of capital they are prepared to lose. These are just some of the many things to consider before entering the crypto market.


For many investors, being able to invest in bitcoin through the Bitcoin Investment Trust is worth paying a fairly expensive fee. The trust sponsor deals with all of the mechanics of investing in bitcoin, including obtaining cryptocurrency tokens, holding them in safekeeping, and then making any future transactions as necessary. Investing in the trust is as easy as buying or selling shares when the stock market is open, and that has real advantages over the lengthening processing times involved in handling actual changes of ownership in bitcoin tokens themselves.
I strongly disagree with what Robert & Brian posted. I have been following the crypto / blockchain space for 4 years and investing in it for nearly 3 years. I am seeing enormous amounts of financial & human capital, investor interest and passion flood this industry. Unless you are seeing the amount of work going on behind the scenes, it is easy to dismiss this stuff as frivolous or even "rat poison". However, Jamie Dimon just said that technology is the #1 threat to JP Morgan. The technology he is thinking about is blockchain / crypto. To borrow a quote from twitter, crypto is rat poison and the banks are the rats. Ignore this space at your own peril.
How about investing in Ether (ETH) at the start of 2017 when it was worth less than $10? These spectacular gains would have made you extremely rich, and this possibility is what excites many entering into the cryptocurrency world. ICOs provides you with the opportunity to invest in the project at its earliest stage, and if they are successful in executing their vision, then investors will stand to reap the potentially tremendous returns.
Even the Dutch tulip bubble, which is classically regarded as one of the first instances of massive speculative market mania, saw increases only on the magnitude of 10–100X — not even remotely close to 100,000X+. And even the most successful of extremely risky angel investments in companies, such as Peter Thiel’s initial $500,000 seed investment in Facebook, see returns on the scale of 10,000X or so or less — Thiel’s $500,000 investment, had he held it all the way to the present day, would be worth $6.8 billion, or approximately a ~13,500X gain. More incredible than just about anything else, certainly, but still nowhere even near Bitcoin’s meteoric rise in price.

For instance, if you wanted to send $100,000 of ethereum somewhere, you’d need to buy all that ethereum and withdraw over the course of 10 days (assuming you withdrew perfectly each day every 24 hours — realistically more like 11–14 days) back to Coinbase or your personal ethereum wallet before you could then send that ethereum on to somewhere else all at one time, like you would need to do in a token sale.

So, unlike an ETF, the amount of Bitcoin held does not increase or decrease from market activity like people buying in or selling out (with the exception of new entrants who must be accredited investors, and in that case they must wait a full year to trade their shares). This creates a situation where the amount of Bitcoin purchased with a single share of GBTC does not always equate to the fair market value of the underlying asset.
It’s a social platform for traders to monetize their knowledge/advice and creates an all in one platform for trading. The team is very professional and they provide regular updates on Reddit and Medium – development work on the platform is done on daily basis. 2018 is planned for marketing and that should see the price rocket. They also need to be listed on some bigger exchange (right now on Cryptopia) as they barely missed the boat to be listed on Binance.
Moreover, people tend to become emotionally attached to specific coins and beliefs. You shouldn’t “believe” in a coin or in a market movement. I’ve read so many times that people are convinced something will go up because it has to, right? The market is just acting weird – it will understand that this or that crypto or the whole space is undervalued. The market is just wrong. Truth be told, the market does what it does, without any sympathy for how you feel about something.
It’s almost 10 years into the introduction of the first virtual currency, the Bitcoin and yet, neither the Govt in India nor the RBI have been able to provide a proper regulatory environment, for the crypto currencies to thrive in India. There are many reasons cited: National Security, Threat to convention currency and unregulated investment, causing severe loss to various investors, who are not well versed in these new avenues of investment.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
×