This low-risk strategy is focussed on the structural growth of some of the top level coins.
Systematic profit taking when risks increase.
Monthly update:
We hope everyone made it through the FTX debacle. An important buy-order for $BTC triggered during the dip yesterday at $16100, allocating an extra 50% of our USD reserve into $BTC . Right now $BTC is trading at $17500 and we build in a stop-loss in case we do see a further capitulation.
For anyone wondering: We are still monitoring the market every day and we would like to give an update on our thoughts. A bearmarket like the one we are in now is rough but nothing new. No-one likes to see their investment loose x% time over time again. However these are the times to slowly build up your portfolio to make the “huge crypto profits” everyone speaks of when we are in a mania-phase like last year.
So where do we stand risk-wise. Compared to a year ago the risk is relative low to invest in $BTC . However this doesn’t mean we can’t drop another 30/40/50% before going up. Normally a year after the $BTC top, the price is at its lowest, so that means we could expect another leg down in the next few months. The world is in a tricky spot as well and people are scared to see what will happen next. A $BTC mania-phase is unlikely now, but just in case $BTC pumps we are 20% exposed to $BTC and 80% in cash. If we do keep a leg down we believe this is one of the final legs down and we will greatly improve our Crypto positions. We believe in another bullrun, and when that happens we want to be prepared.
Sideways with some upside! The last few months have been a good accumulation zone. Buying every week or month would've got you a nice average buy in. Caution remains in the market, we will stay with most of the portfolio in stables until we see a clear breakout either way!
Last saturday we decided to decrease the risk and exposure to the cryptomarket, moving a total of 75% to $USDC and 25% to $BTC .
This proved to be a fortunate move, since $BTC dipped over 20% in the past days and remains looking quite risky. Altcoins consequently took an even harder beating, some dropping over 40%.
We still believe the risk is high, however if $BTC keeps coming down rapidly in the next days this might open up opportunities to slowly start buying back into the market.
Looking at the macro scale of the market, we think the next months will be tough but history tells us these are the times to steadily increase our portfolio by dca’ing in the coins that will survive the bearmarket.
The last few months have been a rough ride. (Luna RIP, fortunately we were out just in time) All markets have been de-risking and crypto has not been an exception. We don't think we are out of the woods yet, but a relief bounce should be coming soon. When this happens we will be allocating more into stables. With this we will have ammo to buy the final capitulation. If this was the dip then we will have plenty left and can even add more when everything has turned bullish again.
