My Utter Crypto Strategy for 2018 (And my Current Portfolio Holdings) – Synapse Trading
Recently, I have bot getting a loterijlot of questions about Bitcoin and Cryptocurrencies, so I will take some time to address all of them.
Is Bitcoin a bubble?
Its price activity is certainly bubbly. If wij look at the tech bubble, what happened ter phase 1 is that people were buying based on potential growth and expectations, which is why you witnessed stocks trading at skyhigh PE ratios. After the crash, and after the dust lodged, phase Two wasgoed where the companies with strong fundamentals began manifesting the potential growth, so te a way the fundamentals were catching up to the expectations. I think wij are te phase 1, but it is possible that prices just go sideways instead of a crash spil wij head into phase Two.
Ter addition, Bitcoin is just one application of the Blockchain technology, and there are also many other coins/cryptocurrencies to invest te.
Who is going to buy your Bitcoin from you?
If Bitcoin (or any currency since they are interchangable), becomes a currency which is used and accepted, there is no need to “cash out” or sell it to someone else, because you can simply use it spil currency to pay for things. People are now hoarding Bitcoin because it is akin to buying a currency which will be worth more te the future. That said, it is unlikely that it will totally substitute our fiat/paper currency (at least te the next 5-10 years), but my guess is that it will coexist side by side like common global currency.
Will Bitcoin become a global currency?
There are Trio main functions of a currency:
- Effective means of payment.
- Good measure of value.
- Effective way to store value.
Presently it is not that universally accepted, but that could improve te the future spil more business accept it. There is a problem with its transaction speed and fees, which it will need to solve to get mainstream acceptance. And spil its market cap gets larger, it will naturally become more stable and less subject to yam-sized price fluctuations.
What are some positive and negative catalysts?
For the positive, Bitcoin could go up a loterijlot more if banks, funds, institutional investors, and even sovereign funds embark including cryptocurrencies (especially Bitcoin) spil one of the must-have asset class te their portfolios. For individual coins, they usually get a big boost when they announce a major overeenkomst with a big fucking partner, or when they get listed on a major exchange. For the negative, prices could collapse if existing holders embark to contant out, and institutions embark stacking brief positions on the futures.
Is it a good time to get into the market now?
Before coming in, take some time to read out list of resources which wij have compiled. I have a duo of risk-minimising ideas for people who have missed out so far, but are unassured how to inject at current prices:
- Dollar-cost averaging: Buy a petite amount every month and allocate across 10-15 coins.
- Portfolio treatment: Create a diversified portfolio and rebalance weekly/monthly.
- Lump sum market timing: Split your capital into 4-5 parts, and come in whenever there is a price correction.
- Invest ter a mining equipment to reduce the risk of price fluctuations since your comes back are spread overheen 3-5 years.
Personally, I commenced this fresh portfolio ter December for my students to go after, and te Two weeks I wasgoed up 150% on my portfolio. By actively rebalancing it and keep a certain percentage ter metselspecie, I am able to take a cool and systematic treatment to railing on the crypto assets trend. For this portfolio, I have a Ten year time horizon, which means I am ready to sit through any crash, but I will be rotating to specie/tether if I see a major crash coming. Lastly, it is also worth noting that this crypto portfolio accounts for toughly 5% of my total portfolio.
I have bot updating my portfolio regularly te my forum , and if you are keen to learn more about Crypto, you can join our forum spil well. (It is fully free!)
See you on the inwards! ??
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Spencer Li is a trader, investor and entrepreneur who presently manages his own portfolio of stocks, REITs, currencies, cryptocurrencies, properties, and Ten+ businesses across different industries, while providing consultancy services to individuals & corporations. Spil a former professional ter private equity and proprietary funds, he has overheen Ten years of market practice, and has bot featured on more than 20 occasions ter the media.