How To Make Money and Control Risk in Crypto Trading

Unless you are a systematic trader, the answer is mostly going to be my investment thesis is probably pretty shaky if you’re truly honest with yourself. If you’ve just bought Bitcoin and you’re a Bitcoin believer and holding forever, maybe that’s a little different. However, if you’re going to do that, you’ve got to be ready for your account to swing by 60-70% down before it continues up, and that’s hard. Imagine you had $100,000, and it dropped to $30,000. You’ve got to be a genuine believer. Imagine you had a million, and it dropped to 300,000. That’s real stomach ulcer-type stuff.

With the systematic approach, you’ve got rules that tell you when to buy and rules that tell you when to sell, and you have to stick to those rules. You can’t say, “It says buy, but I don’t like this token right now, so I’m going to sell it instead of buying it”, or “I’m going to buy a small amount instead of the normal amount”, or “I’m going to go big because I love this one.” You can’t do that. You’ve got to operate according to the rules of the strategy.

You can say I’ve got my forever portfolio, like what you were describing, and I’ve got my systematic portfolio. There’s one approach, one set of rules for this and a certain amount of capital. There’s another approach, the systematic approach, with a certain amount of money. You can operate two separate portfolios according to two different strategies, provided you keep them separate, don’t try and overlay this on that because you tend to get the worst of both. You don’t want to kill a great strategy with something incompatible; that’s an important message.