People on steemit tell me to power up my steem if I am buying and holding for the long run. On the surface that sounds like a great idea because I earn 12% a year and I get to up vote my favorite blogs and pay them to keep posting. I have to agree there is value in that because well I want my posts up voted! LOL
However I want to show you what I call the Little Old Lady style of investing. The little old lady does not have time to trade in and out of crypto she wants to set it and forget it. The old lady must assume that the investment may go to zero and will only invest no more than 5% in any one crypto name or what ever she is willing to lose in a bad bet. The little old lady hears about a crypto blowing up and does not jump on the bandwagon but she draws a Fibonacci and buys at the 78.6 level. If she is able to buy at that level she sets sell orders to sell half on a double so for example if she buys 1000 $STEEM at 0.00185 BTC she sets a sell order for 500 at 0.0037 and a sell order of 250 at 0.0074 and so on forever. Simple.
If the little old lady likes the crypto like I do she wants to reinvest her profits, so when $STEEM takes off to say 0.012 she draws a another Fibonacci study and buys at the 78.6 level. The amount she spends will be half of the profits, in this case at the price of 0.012 she sold 500 at 0.0037 for 1.85 BTC (her initial investment) and 250 at 0.0074 for 1.85. Thus the little old lady will spend 1.85 BTC to buy more $STEEM. She may end up buying 500 or more $STEEM putting her total to 750 and still have her 1.85 BTC original $STEEM investment in her pocket.
Now what if $STEEM keeps going up and never comes back down? Great she will always have steem to sell to people and will keep getting paid 1.85 btc each time it doubles. However what's the most likely scenario for any cryptocurrency? Price action like an up and down yoyo, or to the moon never to return rocketship? I think you already know the answer to that just look at the above chart!
In 2 years if you used SteemPower you would earn 254 steem taking your total to 1254 $STEEM at an unknown value. But I am guessing that following the little old lady style of investing you MAY end up with more $STEEM and a profit to boot!