My simple BTC investing strategy
This is what I am doing personally
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Look, this is me.
This is what I am doing. This is very personal to myself and I am in no way suggesting that you do what I do. So don’t. Do whatever you think is best for your own situation. Make your own decisions. You are the only one who will suffer the consequences (good and bad).
That being said, I’ve put together an incredibly simple version of what I am looking for and what I am doing as the cycle continues. To be fair, I am in this stuff every day. I look at metrics and news constantly. My plan changes as needed and it may change going forward, but so far this has been VERY effective, and as of writing this, I don’t see that changing. Please feel free to ask me more specific questions as you see fit.
Also, the rest of this article has a lot of graphs and such. I am sorry if you find this boring, but this is how I make my decisions. Its important to have a plan that you can stick to so that you do not make rash, emotional investing decisions. The way I do it may not be the way you do it, but please develop a plan for yourself. Write it down. Stick to it when the market makes you feel sick. Stick to it when you feel brilliant because of your success. If/when you need to change it, do so when the market isn’t making your heart pump. Just my 2 sats right there…
Top signals and bottom signals:
I have a couple charts I watch closely for top signals. The last one in this article is the one I rely on the most, but I do take the others into account. Several of which I will share with you in a moment.
Basically, until we hit a strong top signal, I am using a dollar cost average (DCA) method for accumulation. I personally choose to buy a very small amount daily. I have part of my W2 salary automatically deposited into a Bitcoin onramp platform that I use to buy every morning at 5:30am (If you want to learn how to get paid in Bitcoin, just ask). This whole process is automated and I almost don’t think about it any more. Talk about stress free!
I do have a savings account with my bank that I use to squirrel away some savings specifically for Bitcoin. I will use this to do “chunk” purchases when I feel the time is right, (#FireSale) as I will illustrate more precisely below, but I am by no means a trader. I do not recommend that any of you become a trader either. The space is incredibly volatile, and I am not trying to bring that kind of stress into my life.
The way the cycle goes, I DCA for 3 to 3.5 years with occasional bulk buys when we have a nasty red day. Then for 6 months to a year I am either holding or carefully selling. Since we are talking about ME… I will let you know that I never do, and never will sell 100% of my Bitcoin. I don’t care how high the price goes. Just my personal preference on the situation. But I will use the long term trends as a way to try to buy low and sell (some) high. I can use the profits to accumulate cash flowing real estate and when the crash happens I will accumulate more Bitcoin.
Lets start with the most simple graph:
As you can see, I use Glassnode for most of my on chain metrics. Many of their charts are free. They do have several paid account options. I use a mid tier paid account, so if you do not, some of these charts may not be available for you. That being said, If you find any of this interesting I highly recommend you check them out.
Over simplification: Below the green line is a buying opportunity and above the pink line is high risk…