Does Your Crypto Strategy Incorporate Current Market Conditions?

apple.pngCautiously Bullish

Last weekend I gave my view of what would play out this week in the markets. Many were expecting the majority of alts to continue a strong move upward. Though this is what I would have loved to see happen, I had quite a strong indication that this would not actually play out that way. A strong move to 58K and moderate retracement meant one of 2 things. Firstly, BTC could pull a surprise move up to 65K and then retrace, or BTC could dump into an area of more significant consolidation. The latter seems to be exactly what has played out and could see BTC move even lower into the 38K zone if support at approximately 44K is broken.

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Either scenario would bring on an increase in BTC dominance. The idea that BTC would move sideways at the 58K mark was something that I viewed as highly unlikely and so I put my impulses aside to buy more alts and positioned myself for a scenario where BTC would gain dominance.

Often the market will move momentarily in the opposite direction to what it is actually going to choose. Often referred to as a bull trap or bear trap and often incorporates stop loss hunting.

Prepare For All Market Conditions

I may sound like a broken record but to really be able to be active and successful in the markets at all times, one needs to prepare for as many possible scenarios as possible. If your trading and strategy only incorporates a single approach, you better hope things go your way. Design is at the heart of Crypto success! A thoughtful blueprint that has the following is imperative to succeed despite what the market decides to do.

Positions set to profit when markets are bullish.
Positions that profit when markets head south.
Positions that benefit when markets are dormant and move sideways.

Most people are either bullish or bearish and only position themselves for either outcome. I position myself for everything in such a way so as to minimize loss and ensure that sections of my economic portfolio are successful at all times. Though many do not enjoy the risks associated with yield farming, this is an avenue that always does well, as you are constantly earning new coins on a daily basis and maintaining your initial stack. Being able to sell these coins on a daily or monthly basis is a secure income source or profit, though it may be less than in a bull market.

This is why I have predicted DeFi to perform well even in the next bear market. This view can be explored in my recent article, " DeFi - Why It Will Defy The Bear Market & What Ensures Future Growth".

To position yourself for maximum gains also means that you are positioned for maximum loss. To evenly distribute across different risk and market conditions guarantees consistent gains. I know many are looking to cash in on this bull market but I am way more interested in creating income streams that will be massive within a few years from now. This approach also protects me from impulse and helps me to operate and plan in a more rational and conservative manner.

As always this is not investment advice. Please do your own research and ensure that you understand the risks and technology associated with any Crypto investment.

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