Previously whenever the market used to fall by 5%, I used to buy some cryptos or coins to average it out.but now I have changed the strategy, I am not buying or selling in the falling market, basically I do not want to catch the falling knife. This is the strategy which I have started trying out.
PC: Pixabay.com
In this strategy instead of buying the coins or stocks which are going down, I would be looking at the bullish pattern where the coins will be on the upward movement. When the coins are going down and when the pattern reverses the coin will start going up.
I know I will not know the bottom so I will wait to see if the volume is good as well as the overall market sentiments is bullish and thus I will take my entry. Previously I used to buy coins whenever it used to fall by certain percentage to average it out.
This strategy is good too but again since we don't know the bottom we have to continously buy and average it out. But again we need to have a large amount of fund to continously average it out. Instead we should but when it is in upward movement and try to take profit as soon as possible.
Like I used to buy Hive at 0.50, 0.45, 0.35, 0.25. But now since it has gone down I am not buying again until and unless it goes up again that it is in yhe upward movement or having bearish pattern. When the stock is in the upward movement, it tends to give more profit rather than averaging it out.
As of today Bitcoin has gone down by 10% from the last 3 days and thus I will wait to invest more fund until and unless it goes in another direction and goes above some level and then move towards making nee height.
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Which altcoins do you invest in besides Hive???
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Thanks...I have XRP, BNB, AAVE in my portfolio other than Hive and Bitcoin