Introduction

There is a lot of talk right now about the strange EOS token distribution model that started yesterday. For those of you who have no idea what EOS is, please read EOS vs. Ethereum for Dummies! So I imagine that a lot of people came up with strategies in order to figure out how to get their hand on the maximum amount of EOS token as possible this year. This article is outlining what is my personal strategy for doing so.

But First, Why Would I Want EOS Token?

Because EOS token functions very differently then other tokens. On EOS, just like on STEEM, there will no transaction fees...but in order for app developers to have bandwidth on the network, they will require to have a certain amount EOS tokens, kind of like hosting on the Amazon Web Services hosting.

They will have 2 choices at this point:

1- Either BUY EOS tokens or
2- Rent EOS tokens

I particularly like the second option that gives the EOS holder the possibility to monetize it's holding without having to sell. If someone has 1% of the EOS token, he literally has 1% of the bandwidth of the network. That should make your head spin.

My Strategy To Acquire EOS Tokens

My first thought was that I could try to time the market by waiting at the last minute of any day in order to jump on the majority of the 2 Million Tokens distributed daily.

But I thought about doing this and then two things came to mind

1- Once Bitfinex launches EOS tokens on their exchange, people will setup bots to buy EOS at the market price on the eos.io/distribution and therefore a market price will emerge where people would not buy higher than on the exchange

2- Timing the market everyday for a year is too much work for me

I chose to go toward a Ether-Cost-Averaging strategy

So I simply decided that I will be buy EOS tokens everyday at a constant ETH rate for a year. With the recent dip, I'll make sure to replenish on ETH and then dedicate a fix amount daily to acquire EOS for the next 350 windows.

It's exactly like dollar-cost-averaging but with ETH

Dollar-cost averaging (DCA) is an investment technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. The investor purchases more shares when prices are low and fewer shares when prices are high. The premise is that DCA lowers the average share cost over time, increasing the opportunity to profit. The DCA technique does not guarantee that an investor won't lose money on investments. Rather, it is meant to allow investment over time instead of investment as a lump sum.

Read more: Dollar-Cost Averaging (DCA) http://www.investopedia.com/terms/d/dollarcostaveraging.asp#ixzz4lCidNjj5

Why?

I personally don't believe that I am any good at timing the market. I get in project when I see an opportunity but I am terrible at timing the market. I mean...really terrible.

Acquiring EOS on a daily schedule over a long period of time is the way to go because I believe this platform will be big in 3 to 5 years. There will be highs and lows but over time a long period of time, the investment that I made in the first year of distribution will pay off, I'm fairly confident of that.

What is Your Strategy?

Please comment below and let me know what is your personal strategy to acquire EOS tokens. I'm sure there are smarter ways to go about it and I'm curious to know what other people are scheming!