Get While the Getting’s Good

My Current Plan with BTC and ETH

I own BTC and ETH, but I buy at more or less random times, for more or less random reasons. It’s time for a plan. Here’s my working draft:

  1. Buy $100 of BTC each week (or maybe every other week) no matter what price it’s trading at
  2. Buy $100 ETH each week (or every other) no matter what price
  3. Instantly replenish any BTC or ETH used to buy other tokens, no matter what price either is trading at the time
  4. If either starts dropping, consider selling small increments proportional to the percentage drop, but…
  5. Always prefer holding

Why?

The reason for numbers 1, 2, and 3 is that BTC and ETH are only going up right now. There will be ups and downs in the future, but they’ll both go generally up. At some point, when everything gets just a little more mainstream, there will be a huge surge in value as everyone buys in.

I want to get as much into each currency as possible before the “mainstream spike.” (After the spike, I have no idea what will happen and need another plan, because everything will change.)

The reason for incremental investments is the uncertainty of each currency. Both are setting record highs almost daily, but who knows when the top is? By investing small increments, I can take better advantage any time the price drops. I’ll potentially miss upside that way, but ultimately, reducing some of the risk is more important to me.

Number 4 is also there to hedge a little against a price drop. If I take small amounts as the price drops, I’m keeping money I’d otherwise lose... as long as I don’t sell at the bottom. Avoiding timing the markets is an important investment principle to me, especially in crypto. That’s number 5. So instead of trying to sell a big chunk into a dip, I’ll just sit tight and wait for it to go back up. This rule is kind of a hedge against the hedge.