Accumulation Strategy for HIVE : Nibbling the Lows

in LeoFinance3 years ago

When accumulating any asset it’s good to have a strategy. Ideally we all want to be buying low and selling high but it’s never that simple to get the timing just right. In a Bull Market the most common Accumulation Strategy used is referred to as Buy The Dips, but what about a Bear Market? Well, some would say you should never buy in a Bear Market as you’d be trying to Catch a Falling Knife but here we are with an asset like HIVE that has great upside potential, in what looks like a strengthening Bull Market in Crypto….so what do you do?


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I should probably insert my “This is not investment advice disclaimer” here rather than leave it at the bottom, but I am just going to outline my own Accumulation Strategy for HIVE. It is a less known one which I refer to as Nibbling the Lows. The concept is pretty straightforward. It acknowledges that a Bear Market is in play and there may yet be some more downside to come before a bottom is found, so the parcels you buy are just small ones. You “Nibble” at the asset with very small bites so that you are Dollar-Cost-Averaging lower each time you buy, but you are not overcommitting with all of your investment funds while a bottom hasn’t yet been confirmed.


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The other important aspect of the strategy is to naturally look for the Lows to place your buy orders. This can be helped greatly by the use of Technical Analysis on a recent mid-term price chart. You want to try and find the levels where you might expect buying support to come in. These are typically points where recent lows have been found, but they can also be old lows or calculated via the use of Fibonacci Ratios. With this strategy I usually try and put my buy orders in just slightly above those levels where I expect there to be some support.


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So far with HIVE I’ve managed to get all my orders filled, primarily because the Bear Market has continued and new near-term lows have been found. I’ve had some good Nibbles around 21 cents in August and around 14 cents earlier in October and I’ve had a lot more little ones along the way. Yes, I am currently showing a loss on my valuation but I did succeed in Nibbling the Lows and for the bigger nibbles I have bought them just before a bigger bounce. Going forward I see support currently around the 13 cent level but my next decent Nibble is probably going to be just above 10 cents. I think it’s unlikely we’ll get that low, but you never know. Alternatively if we crack 20 cents in a meaningful way we could be off to the races alongside the rest of the market.


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The other great thing about this Accumulation Strategy is that it doesn’t matter if you only have a tiny stake to invest. In fact, that is kind of the point. So it is a great strategy for users of HIVE who are not heavily into Crypto or Investing as you can use the strategy to just nibble a few dollars’ worth here and there when you have some spare funds. It can be a very effective way to save and build up a stake that might be worth a lot more if we see a broader Crypto Bull Market like we did in 2017. Remember that back in March 2017 this blockchain was called STEEM and was selling for about 7 cents. Less than a year later it was over $7 so it went x100 pretty fast.

If you’re buying HIVE always remember to Do Your Own Research


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I like the nibbling analogy. Certainly fits in will with don't sirens what toy can't afford to lose. Also, less chance of mourning over losses if it drops again.

I always find it puzzling why people would continue to sell en masse when prices are down. I'd be more likely to hold until it reached a better price.

It's fairly typical market psychology. During the capitulation phase investors just want to stop losing money. It can weigh on the psyche to be holding through brutal bear markets.

Of course there is still always the chance we're going to zero, but the chance of us going up by x5 or x10 are also there and it's an asymmetrical risk / reward calculation. Some people are just too risk averse for this type of strategy and would rather just buy on the way up once the perceived risk is gone.

I haven't bought any hive, I've been a "seller", but even I can see a case for buying in at these prices. I'm waiting for a pull back in silver (which might not happen), so I do have some fiat floating about to throw at this.

Buying silver is something I'd like to be doing too but the premiums on physical and the back-order delays are a bit of a turnoff for me right now.

That's a great strategy @buggedout, bear markets can last longer than most people think, this approach to investing keeps you from falling into FOMO mode too!

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Glad you like it. It's hard to believe that Bitcoin is cracking $13K again and HIVE is still languishing....

At least it seems to be bottoming again, it would be nice to see it have a slow grind higher though!

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Which exchange do you like to use to purchase your HIVE?

Well, I used to prefer Bittrex but my last deposit there got held up by 3 days so I am very wary of them at the moment. I also use Binance even though that's a bit of a dirty word around here at the moment they at least seem to be quick and reliable. During HF24 they were also trading HIVE at a bit of a discount.

I am surprised you can Australian dollars into Bittrex.
(do you have to convert to The US dollars, and then to a The US bank, and then to Bittrex?)

i mean, people in Hawaii can't even get their money into Bittrex, and they are a united state.

And, as long as you don't leave your HIVE on the exchange, there really shouldn't be too much problem.

I wasn't starting from AUD. Just rebalancing holdings of other Crypto.

When starting from AUD I go into BTC at btcmarkets.net and then off to an exchange that trades BTC into the alt-coin that I want.

Fantasyic advices man y would be try unfortunately I bubbling in 0.16 and the BBC was in 10.6k I loses but this is a market and we should only hold on hive.
Hold on

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Good to see you still active, @buggedout !!

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