4 ms·
There are different approaches for that based on different assumptions and based on which risk level you prefer. My favorite strategy is the one outlined here:
by gst 4y ago
There are different approaches for that based on different assumptions and based on which risk level you prefer. My favorite strategy is the one outlined here: https://bitcointalk.org/index.php?topic=345065.0 https://bitcointalk.org/index.php?topic=345065.0 (here's a calculator for it: https://jlopp.github.io/bitcoin-savings-plan/ https://jlopp.github.io/bitcoin-savings-plan/).
Basically every time the prices increases by X% sell Y% of your investment and don't touch the remaining part unless it is X% higher than the previous peak at which you sold. This ensures that you're realizing gains on the way up, but still benefit if the price continues to climb. In addition what I like about that strategy is that it takes emotions out of investing: Decide once what your parameters for the strategy are and then just strictly follow it, whatever happens. It's a lot easier to stomach a 90% price decrease if you realized a sufficient amount of gains on the way up.
- endisneigh 4y agoI realize there are different strategies, my point is never selling is a bad strategy and so HODLing is a bad strategy.
- gst 4y agoUnder certain conditions HODLing can be an ok strategy. Assuming my investments are diversified enough and Bitcoin is only a small percentage of my overall net worth, why deal with the stress of active investing and trying to time the market? I can totally understand the mindset of investing some amount today but not wanting to have to care about that investment for the next X years. Especially with the high volatility of crypto currencies.
- olalonde 4y agoFWIW there's a lot of scientific research backing the idea that HODLing is the best trading strategy for stocks[0]. It's why women tend to do better than men on the stock market (they trade less)[1]. Given that cryptocurrency is even less predictable than stocks, it'd be surprising if it didn't hold true for cryptocurrency as well. [0] A good book on the topic: https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street [1] https://holdfastwealth.com/blog/why-women-make-better-investors-than-men https://holdfastwealth.com/blog/why-women-make-better-invest...