What is the most effective way to invest in Crypto and minimize the risk of loss? This question certainly always appears in every investor's mind and is looking for an answer. In the following article I will share about my Crypto investment strategy. Before starting this article, I verified for a long time and optimized the strategy to the best possible level and in the future I will will always update and optimize this strategy over time.
First I have to say that this strategy of mine achieves the best results during a bearish market. Specifically, I look for coin projects that have split 10-30 times from the top, then I turn on the 1M candlestick chart (1 month to get a better overview) and if there are many monthly candlesticks with small and flat candle bodies, then Having met the initial criteria, next I check if the project team is still active and updates information via google, twitter (x), facebook, project website regularly and is still trading on major exchanges. no, as well as still achieving an average trading volume of $1 million a day over the long term.
After meeting the necessary criteria above, I will proceed to divide the capital into 3 parts as follows at the ratio of 20, 30, 50.
For example: I have $1,000 in capital (idle money and can accept risky investments)
I divide 20% of my capital of $1,000 into $200 to invest in a coin project when I find a potential project that meets all the necessary criteria.
After a while, if the coin project I invested in increases in price X2 times, I will sell 1/2 to get the original part invested and the profit I keep long-term according to the market trend, because at this time my psychology is more comfortable. a lot because that's the profit, losing it is okay. However, if the coin project I invest in does not follow the price increase route but instead decreases, I will proceed to average the price according to the original ratio of 20, 30, 50.
If from the time I invest 20% capital ($200) the price continues to decrease by 30%, I will average the price by putting in 30% capital ($300) and if the price at the time I invested 30% capital If I continue to reduce another 50%, I will have to calculate a little more carefully because the remaining 50% of capital is very important at this time. Specifically, I will review the market and patiently wait for the price range to be at a point where it accumulates for many consecutive months. Then I will average the price by investing 50% ($500) of the remaining capital. The advantage of averaging the prices according to the above ratios will help me have a much better price, helping to reduce the loss rate compared to when I invested 20% of the initial capital.
So what if, after averaging the price of all capital, the coin project I invested in still continues to decrease? At this point, I will consider cutting my losses, because my investment philosophy is AS LONG AS MONEY IS LONG AS OPPORTUNITY - OUT OF MONEY IS OUT OF OPPORTUNITY.
In the case when I have invested all the capital at the rate of 20, 30, 50 and the coin project starts to increase in price, I still follow the strategy of selling 1/2, which means getting back the original investment of $1000 when Coin project I invested X2 times. And the $1000 profit I will hold according to the market trend for a long time.
The above is my personal investment strategy that is quite simple and has achieved good results. However, the most difficult part of the above strategy is to be patient and wait for the price ranges at the rate of 20, 30, 50. If you If you have discipline, patience and waiting, you will fit my strategy. Financial investment is a matter of waiting 90% of the time, victory always belongs to those who know how to be patient and wait.
Theo Vuongnd
