As A Crypto Veteran Who Made It I Want To Share My Most Valuable Lessons For Newcomers (Alternatives To DCA)

My history: Joined in 2017, did all rookie mistakes u can imagine, including losing funds on a hacked exchange (BitGrail), but did not give up and sitting on 30x of my initial investment today. The best thing about investing: You can't blame anyone but yourself for fucking up. This is what motivated me the most, so I used the bearmarket to read books and educate myself.

The strategies I'm sharing here are for people who are a little bit more confident and want to do more than just DCA

Getting into a position / accumulating bags:

People love to accumulate on the way down. They think "Wow, it can't drop much further from here", but it can always drop more. If u buy at -90% and it goes to -99%, which we saw for a lot of coins in 2018/19, u are down -90% on your investment. Since most coins recovered, people will feel like this strategy is great, but some stuff does NOT recover. About 5 of my old bags got delisted from exchanges and are now worthless.

The much safer strategy is to accumulate on the way up after a break in market structure (making a higher low and higher high) and getting out when it forms new lows. You might be wrong a few times, but it is much safer.

If this is too advanced for you and you prefer DCAing in a bear market, I would do this only for Bitcoin and Ethereum or a few other majors and only buy small caps after the trend has changed.

Exit strategy / taking profits:

You probably heard the following statement plenty of times: "Nobody ever went broke by taking profits". I tend to disagree and here is my version: Bad traders go broke, because they cut losses too late and advanced traders go broke, because they take profits too early.

My reasoning: We are in crypto. It is a highly volatile market with great opportunities and great risks. Investing into crypto for small profits is not a good risk/reward. So once you have a position and the market is starting to trend, you want to go with the trend and sit tight. People rather take profits on their 2x-3x bag and put them into their worst performing bag, because "it has to catch up". Instead, they should add to their 2x-3x bag and think about getting rid of the loser. Of course, you have to take profits at some point, but don't set your targets too low. Even Bitcoin did a 15x and some of my other bags did a 50-100x and this is where I took profits the first time.

So how do I find good targets? Analyze the history of the coin you're buying or similar coins and see how they performed in past bullmarkets to get a feeling what might happen. Go to their telegram channels to get a measure of euphoria. If new people are flooding in and sharing crazy targets AFTER it is already up a lot, you can start taking profits.

Patience is key

This is not a secret, but I still want to emphasize it, because it is by far the most important factor. My two previous paragraphs are based on patience. By not accumulating on the way down you are basically doing nothing for a long time, but waiting for a shift in market structure. Once you are in position, you are again doing nothing for a long time, but watch your bags grow. This is how the big money is made. It is the easiest and hardest part at the same time and in theory everybody knows it, but once you are in position you forget about it. So set up a system of rules and do not break them, EVER.

Patience was and is my biggest weakness, so I found a way to trick myself: I created one hodl/longterm portfolio with 90-95% of my assets and one active altcoin trading account with only 5-10%. This way I could still do stuff in crypto and keep myself busy without touching my good bags. It's also nice to compare the performance of holding vs trading. My trading account is in profit, but got outperformed big time by the longerm portfolio.

I could probably fill a book at this point myself, because there is so much more about it, but I will cut it here.

PS.: Don't check my post history, I did it for the Karma lol