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Cryptocurrency Investing (Reads & References (https://blockgeeks…

- - - - 30% Crypto
        
        90% in established coins
        
        10% in speculation
      - 70% Traditional investments
  - - - 90% Other investments
      - 10% Crypto
        
        25% top 2: BTC and ETH
        
        Most recent ICOs are Ethereum based (70% in 2017) and therefore require Ether.
        
        40% into established coins e.g. top 20
        
        20% into up and coming coins outside the top 20 but coming up fast.
        
        10% into new coins that have gone public onto an exchange.
        
        5% into ICOs
        
        Spread the risk among a minimum of 20 ICOs.
    - - Use a simple yet effective strategy like Value Cost Average strategy.
      - Buy the currency at when it has dropped - 10% from a recent high and again at - 20% from the recent high and again at - 30% from the recent high. Draw your lines in advance, so you get in according to the strategy. Make sure you are looking at a chart which shows the crypto in relation to something stable, NOT in relation to Bitcoin. If you can’t find that then write down the price at which you are going to enter in advance. Each time increase the amount you are investing by not more than 25%.
    - - For example, if you are in profit and have made over 100%, it is time to think about setting a stop loss just below it to sell a part of your holdings and take some profit, say 20-30%.
      - Bull cryptocurrency: buy on the dips and sell 20-50% of your profit as it goes back up but hold on to the rest for when the big move comes.
    - - Wallet: www.MyEtherWallet.com
  - - - I always set my buy order 3% below the current market price on exchanges.
      - Create a dollar cost averaging schedule. This schedule decides the total amount of investment you want to commit to and the length of the period during which you want to invest this amount.
    - - Strategy
        
        I first created a balance based on the types of cryptocurrencies, then I created another balance of the cryptocurrencies within each of the types of cryptocurrencies.
        
        Whenever I buy a new coin or buy into an ICO, I classify it into its type. Then I sell some of the other coins within this type, so I have room to buy the new coin.
        
        Do yourself a favor and stick, for the most part, to the bigger and more established cryptocurrencies.
      - Allocation
        
        Transactional coins: 35%
        
        Platform coins: 50%
        
        Utility tokens: 15%
    - - The stop-loss option is an incredibly useful tool to protect your profits, and I highly recommend using it.
    - - Decide on a profit-taking strategy. When will you take profits? And how much will you sell? I’ve divided my holdings into low risk (Bitcoin), medium risk (platform), and high risk (utility). For every category, you decide on a profit/sell schedule. This can be: when a high-risk investment rises 20%, you sell 5%, or if you want to take more risk, when it rises 50% you sell 10%. Be realistic and commit yourself to your created schedule.
      - When a coin has just skyrocketed by 300%, take profits. HODLing everything after such a major run-up is greed.
      - In the crypto spheres, there are two ways in which you can take profits: Profits in Bitcoin (Bitcoin still is the king of crypto) and profits in cash. I personally try to balance the two: I use my altcoin profits to slowly increase my Bitcoin holdings, but I also buy a cash position to buy the dips on my favorite altcoins.
      - Always create a profit/sell ratio for Bitcoin, because most of your profits from altcoins will first be turned into Bitcoin.
    - - Maintain a strong portfolio by removing inherent human psychological weaknesses – remove the "you" from the equation.
      - Your portfolio can be worth much more with a measured strategy.
      - It’s a long-term strategy with options for mid-term action.
      - Systematic approach to buying low and selling high that will continuously increase the value of the my portfolio.
      - It rides the big waves of the crypto market in a relaxed way. Don’t try to predict anything, but just go with the flow. The market is incredibly volatile, and the sooner you accept this and learn to ignore it, the better.
      - Your portfolio must consist only of projects that you know by heart, are keeping regular track of, and remain confident in.
      - Consistent discipline is key. Create a schedule for everything you do: weekly portfolio assessment, continuous research, buying in, portfolio balances, profit/sell strategies, using stop-losses, and taking profits. I do this every Wednesday.
    - - Portfolio Tracker: Altpocket
  - - - Before investing in anything, you need a clear understanding of what your investment goals are and how you will achieve them. You want a good idea of how long you are prepared to keep your investment open, and what amount of profit you are happy to take.
    - - I invest around 5% of my portfolio in cryptocurrencies because, like a growing number of investors, I believe that there is no longer doubt that cryptocurrencies in some form are the future of money.
  - - - If you coin went 2x or 3x, it makes sense to take out the initial investment or at least a big chunk of it and let the rest ride for free.
      - By taking profits regularly, you reduce your risk in a smart way while still being able have skin in the game.
    - - Keep Some FIAT Aside, so that you can invest it when an opportunity arrives.
    - - Let’s say you were to invest $1000 in a certain cryptocurrency. You could just spend the entire amount at one go or you could do what’s called averaging down: This means that you’d only put a fraction of your total investment at the current price and then set multiple buy orders for lower prices in case of a dip. If you invest $500 at $0.40 and then watch it drop to $0.20, you still have the remaining $500 to invest. This way, you average buy price will be $0.30.
- - - - Where are they located?
      - Are the owners known?
      - Since when do they operate?
      - Do they provide some audits to ensure you all the coins are avaulable?
      - How do they react to customer requests?
  - - - With private key locally (PC/Mobile)
      - With public / private key online
  - - - Bought Hardware: Ledger, Trezor, BitBox, …
      - Cold Storage on USB, e.g. MEW