Preparing for the Big Crypto Kahuna Waves of 2022
Every January the big Institutional investors re-align their portfolios which often creates a bullish trend as new monies come into companies looking to have a breakout year and diminishing those who didn’t perform as well in the previous year.
As a crypto investor, you need to do the same.
Now we know most of us who have been in this industry for all of 2021 and before, felt that Bitcoin and many altcoins were heading towards all time highs and sadly it all plummeted to the ground like a lead balloon.
The whole market has more of less been sideways ever since but with subtle rays of light breaking through.
Learning Valuable Lessons:
So what lessons have we learned from almost all the crypto pundits leading us astray somewhat, saying that Bitcoin would be $100,000 USD by the end of 2021 and instead dropped to $40,000 and even down to $36,500 most recently?
Are you still holding your bags?
Did you allow greed and the allure of fast riches to lure you into buying high?
Don’t beat yourself up or blame anyone else, but let’s learn some lessons.
Lesson #1 — Never buy into a rising market:
Everyone gets excited when Bitcoin and altcoins start rising exponentially creating a Fear of Missing Out (FOMO) frenzy and we end up jumping in thinking it’s going to keep rising.
Crypto is very volatile and often moves in 10–20% or more price swings.
Patience will reward those who wait for the next downward price swing.
Lesson #2 — Always take profits:
Of course, you need to have profits to take them which is why Lesson #1 keeps us from FOMOing into something that may not work in our favor going forward.
When do you take profits?
When your investment makes you your initial capital back, sell 1/2 and let the rest ride. This way you have preserved your capital and the rest is free money if it continues to rise.
Lesson #3 — Ride the Waves:
To play in this market, you need to become an experienced surfer, riding the up and down waves looking for that big kahuna wave to ride it out to awesome profits.
How do you do this?
Ride it up, sell half your holdings when your capital is made back, then follow the trend. If the trend is up, ride out a few waves until you sense or see in the charts that this wave pulse is starting to fade out. Time to sell and sit on the sidelines.
Lesson #4 — Wait Patiently
Like an experienced surfer, they sit and wait patiently on their boards until the next big wave comes, often sitting out the small ones that come their way — you need to do the same.
Use this time to study charts and trends. Don’t rely on other pundits, educate yourself and learn, it’s not hard nor is it rocket science.
Investopedia has a good primer on candle chart reading.
Once you have ridden an awesome kahuna profit wave, move those profits to a Stable Coin and wait.
Your money is better served there, than in negative territory because you allowed greed to take over and then the market turned against you.
Lesson #5 — Repeat the Wave
Once we’ve had a good correction, study the Candle Charts and dip your toes into the water once you see a bottom and another wave begins.
Theory doesn’t always turn into reality, sometimes we are stuck in a sideways churn for awhile and if you find yourself in a position that’s going against you, just HODL and wait patiently.
In my next series, we will discuss how to setup the perfect Crypto IRA Model Portfolio and Exposure by Market Sector.
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Open an ALTO Crypto Roth IRA Today
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About the author:
Jeffrey Clarke is a researcher, investor, writer, author, speaker, photographer and has been in the computer industry for over 30 years. A graduate of the Lansdale School of Business, he holds a degree in Computer Science and has run several businesses in the import/export, investment, real estate development and computer consulting industries.
Crypto and Investment Experience:
Since the 1990’s he started investing in gold/silver, real estate and has recently diversified into Bitcoin and Crypto currencies.
Editorial Topics and Publication Management:
• Unbanking yourself and using crypto.
• Preparing for Retirement with Crypto IRAs.
• Altcoin Company Analysis and interviews.
• Companies meeting real world solutions using crypto.
• The future of NFTs.
• Visionary elements of living in cashless society.
Personal Hobbies and Interests:
• Philanthropy efforts in Making the World a Better Place.
• Hiking and camping.
• Photography.
• Good food, good fellowship and learning about new cultures.
Now accepting 2022 Speaking Engagements.
Twitter: @crumbsbit
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