I started Oracle's Core Number Compounding method last Thursday, March 4, 2021. I now have results to report. If you did not read my post from last week describing how Core Number Compounding works, here's a video by BigK Crypto where he shows you how it works and his results. You can find more videos by searching for "core number compounding" or "core compounding" on YouTube.
Now that you've had that primer, let's review my own experience using Oracle's Core Number Compounding. On Thursday, I bought into BNB and ADA with $1000 positions. My reasoning was that I did not want to muddy the waters, tax-wise, by trading ETH and BTC, which I already have for long-term buy and hold.
The first problem I had was low volatility. Crypto has been somewhat trading sideways all weekend. BNB and ADA really weren't performing as expected. Another problem I had with them was that Crypto.com has minimum sell levels at nearly $30. So, I could not take advantage of 10% or even 20% gains to scrape off the top.
I saw that VET was having some volatility, so I switched out BNB for VET. I did make some gains there until my minimums started inching up towards $30.
Seeing that CNC works, I decided to pull some more money to add more positions. I topped up my CRO position to $1000. At this point, I had ADA, VET, and CRO. All three had the creeping minimums from before. There was volatility; but, I needed 3% to cash out, not the 1% recommended for CNC.
I eventually relented and decided to go with BTC and ETH. This is because their minimums are smaller, allowing me to skim off 1% and 2% gains. As this worked out, I decided to amplify things by selling ADA and VET to raise ETH and BTC to $2000 positions each. In retrospect, I should have started with $2000 positions on BNB and VET to overcome the volatility and creeping minimum problem. So, now I am at $1000 CRO and $2000 for both ETH and BTC.
Here is a screenshot of my results so far.
Things to keep in mind are that these results are on a very slow-moving upward trend. A surge would result in larger cash-outs. Also, These results could be amplified by increasing my core numbers. Imagine if I had $10K positions on BTC, ETH, and CRO. Instead of $21 gains, I'd have $100 gains on 1%. In other words, this is crazy scalable. Of course, a bear market could turn things around quickly.
The way I see it, as you cash out, you are extracting gains into cash. The only money at stake is your core number position. The longer this is done, the smaller the risk is because the gains become asymmetric the longer you go. If you can stand to lose the core number you choose in cash, it could spit out gains all day every day so long as there is volatility. The biggest risk is if your position goes to $0 and you keep buying into the dips. Could BTC go to zero? Possibly. That's why we only do this with money we are willing to lose. In a bear market, you may be better off exiting your position and waiting for a bottom.
I'm not a financial advisor. I'm just some kook on the interwebs listening to other yahoos on YouTube. If you're looking to me for advice, you are really messed up. Talk to a real professional about your circumstances.
