I always daydream that I have a few million to invest in crypto.
Suppose if I have that money, I will have to hire some staff and organize them into a few departments.
Of course, I will be the CEO to decide what the target of our business is. Say, to accumulate X hundred million, over a ten-year period.
These will be the departments and their mission, or their purpose for existing.
Hodling Department
They will be monitoring how much I hodl. They will study the market and pick the good projects worth long-term holding. They will research and recommend how much of each should I hold.
For example, 1000 of Token A, 2000 of Token B.
Most importantly, they must in the right proportion as I do not want to take too much risk, nor do I want to be too conservative.
I may not have all the target amount yet, so the staff in this department must keep their eyes on the target and keep stacking them when they are appropriate.
When the target had been reached, they also have to recommend whether to set a bigger goal, to stop or to stack new tokens they have found.
Staking Department
A department that will work closely with the Holding Department will be the folks from the Staking Department. They will be responsible for managing the staking of the tokens I hodl, so that I can earn some yield on them. This helps the token count grow.
Liquidity pool and loaning them out can be risky, but I won't rule those out. However, under the present climate, they would have to be extra wary of any sudden collapse. Think Luna-Terra.
Scalping Department
A budget will be allocated to the Scalping Department to help grow the token counts over time. Folks in the department will set buy and sell orders on a pair of assets, such that the natural fluctuations of the price action will win me more tokens over time when the sell and buy targets are met see post. They need to know the technicals to help me earn the most tokens through this process.
Hunting Department
A budget will be allocated to the Hunting Department to set buy or sell orders at prices that are out of the norm. Say, a sell order at a high price that gets activated due to the sudden spike, or a buy order that gets activated due to the sudden drop. Not a simple task to decide what prices to set, so folks in this department need to know how to read the technicals well. Also, this can't be allocated a high amount because this usually happens when we are all sleeping!!! We are not there to react, so it can be risky.
DCA Department
The last department will be the DCA department. These folks will need to work with the Staking Department to see how much is needed to reach the hodling target. DCA is usually a good way to accumulate tokens over time, so this department must be responsible enough to DCA with discipline, and at times, DCA more or less according to market conditions. When we mention DCA, it also refers to DCA out of the market, i.e. profit-taking.
Conclusion
No, I still do not have a few million to set up these departments. Currently, I am the CEO as well as the folks in these departments.
In effect, these pretty much sum up my strategy for managing my crypto investment. First by having a target, and then employing hodling, staking, scalping, hunting, and DCA strategies.
Let me know what you think! Did I miss out on something?
P/S: This is not financial advice, and please do your own due diligence before investing.
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