An AI trading bot that learns how to time the market and accumulate Bitcoin quickly learned that the best way is to simply ”hodl.”
Are you actively trading or just holding your crypto?
Trading plan for 2022 is specific in this regard.
80% hodl, but the constitution of the portfolio is reviewed at least quarterly, and the gains or losses of each component is measured against BTC, not against USD. The constituent parts should not exceed 10 cryptos, with BTC + ETH making up between 50% and 70%, and all other constituent parts making up between 30% and 50%.
20% trading. This consists of two parts. 10% being speculative short term opportunities of large cap constituents of the top 50 by market cap. The other 10% is what I call my “three zeroes” part. This consists of low cap cryptos that have an opportunity to grow 10X, 100X or 1,000X within 3 years. Each component starts as no more than 1% of portfolio value. If and when it doubles, I sell half and park the rest longer term. Out of a maximum holding of 10, I have five, two of which have more than doubled, so their net cost to hold is zero. This started Nov21, so the two successful ones so far are exactly two more than I expected during this short holding period. Time will tell, but the overall business plan outcome is to double the overall portfolio performance from just 10% of its value. It’s not a static immovable plan, more of a minimum/target/stretch target constituent.
Hodl is the only way. It is an asset in its infancy so it’ll take some swings but you have to have a long term view
For sure. Having said that with the money involved in BTC it is trading more and more like a fiat currency all the time.