Accumulation Strategy for HIVE : Nibbling the Lows

When accumulating any asset it’s good to have a strategy. Ideally we all want to be buying low and selling high but it’s never that simple to get the timing just right. In a Bull Market the most common Accumulation Strategy used is referred to as Buy The Dips, but what about a Bear Market? Well, some would say you should never buy in a Bear Market as you’d be trying to Catch a Falling Knife but here we are with an asset like HIVE that has great upside potential, in what looks like a strengthening Bull Market in Crypto….so what do you do?

I should probably insert my “This is not investment advice disclaimer” here rather than leave it at the bottom, but I am just going to outline my own Accumulation Strategy for HIVE. It is a less known one which I refer to as Nibbling the Lows. The concept is pretty straightforward. It acknowledges that a Bear Market is in play and there may yet be some more downside to come before a bottom is found, so the parcels you buy are just small ones. You “Nibble” at the asset with very small bites so that you are Dollar-Cost-Averaging lower each time you buy, but you are not overcommitting with all of your investment funds while a bottom hasn’t yet been confirmed.

The other important aspect of the strategy is to naturally look for the Lows to place your buy orders. This can be helped greatly by the use of Technical Analysis on a recent mid-term price chart. You want to try and find the levels where you might expect buying support to come in. These are typically points where recent lows have been found, but they can also be old lows or calculated via the use of Fibonacci Ratios. With this strategy I usually try and put my buy orders in just slightly above those levels where I expect there to be some support.

So far with HIVE I’ve managed to get all my orders filled, primarily because the Bear Market has continued and new near-term lows have been found. I’ve had some good Nibbles around 21 cents in August and around 14 cents earlier in October and I’ve had a lot more little ones along the way. Yes, I am currently showing a loss on my valuation but I did succeed in Nibbling the Lows and for the bigger nibbles I have bought them just before a bigger bounce. Going forward I see support currently around the 13 cent level but my next decent Nibble is probably going to be just above 10 cents. I think it’s unlikely we’ll get that low, but you never know. Alternatively if we crack 20 cents in a meaningful way we could be off to the races alongside the rest of the market.

The other great thing about this Accumulation Strategy is that it doesn’t matter if you only have a tiny stake to invest. In fact, that is kind of the point. So it is a great strategy for users of HIVE who are not heavily into Crypto or Investing as you can use the strategy to just nibble a few dollars’ worth here and there when you have some spare funds. It can be a very effective way to save and build up a stake that might be worth a lot more if we see a broader Crypto Bull Market like we did in 2017. Remember that back in March 2017 this blockchain was called STEEM and was selling for about 7 cents. Less than a year later it was over $7 so it went x100 pretty fast.