My recipe for success in crypto after 8 years

Cryptocurrency News and Public Mining Pools

My recipe for success in crypto after 8 years

So I'm pretty much a whale by now after 8 years in crypto. I started with nothing but a normal source of income and I didn't strike lucky on a megapump or anything like that. Just steady profit taking and a simple rule I never break.

If anyone wants to play the long game, here's how I play it (initially shared in comments, then people asked me to share it)

  • I sell 20% of my bag after 40% profit, as a hard rule. Then I DCA back in during dips and bear markets using my main source of income and post-tax staking rewards. Works reliably every time. It's worth rewriting that as "taking profit, but still with 80% of the portfolio intact"
  • The 40% profit level is usually hit 2-3 times during bull runs, but sometimes only 1. Profits end up in a composite index fund, and I prepay taxes.
  • I'm fairly diversified (around 30 coins), with a mix of oldcoins, solid midcap projects and a few microcaps. I do a lot of research and immerse myself into the communities of most of these coins. If something starts to smell bad, I sell immediately.
  • I stake whenever I can, some coins are up to 20% APY without lockup. This is now a significant stream of passive income.
  • I completely ignore fads and shitcoins. Just solid projects with a good plan.

Key takeaways: I make no attempt to time the market, and "hodling" across bull runs is not effective.

This is a powerful strategy, because you get to have a crypto exposure, yet benefit from the magic of compound interest in fiat.

submitted by /u/unprotextor
[link] [comments]