Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

#News twenty six August 2017: This essay is top of the Google Search for crypos. Please clap for this essay if you are sultry about crypto. I tweet about crypto trading: BambouClub .

#News twenty six August 2017: I keep a crypto trading diary that I regularly update with trading recommendations.

The Ten Rules

26 August 2017: These are my self-imposed rules for trading cryptoassets. I am a self-employed trader with no links to any enterprise. Spectacle of my Portfolio:

Since Entry June 2014: Portfolio is x20.55, i.e. has enlargened 1,955%. My average Bitcoin buy price (June two thousand fourteen to December 2015) was $540. Bitcoin (at its current $Four,350) is x8.05, increase of 705%.

Year to Date (YTD) 2017: My portfolio is x10.Nineteen, i.e. has enlargened 919%. Global Cryptomarket is x8.78, increase of 778%. (From $17.7 billion to $155 billion.) The main successes in my portfolio have been $BTC, $ETH, $EOS (ICO), $XTZ (Tezos ICO), $ZRX (0X ICO), $NEO and $BNB (Binance Coin). These calculations apply to my trading portfolio, and exclude my pension which has been fully invested in a Bitcoin fund since June 2017.

These notes are mainly for my own benefit so I can refer back to them and improve them. I will update it from time to time.

  1. Build the Portfolio on Bitcoin
  2. These are Early Days. Be Bold!
  3. Index Track the Top ten Cryptoassets
  4. Scale Out (Take some Profits)
  5. Buy the Dip, and do not Sell the Dip
  6. Do not Over-Trade. Lock up Coins
  7. Let Profits Run. Cut Losses. Witness 7d Price Switch not 24h or 1h
  8. ICOs are a Good Chance. Do Your Own Research. Beware Herd Mentality
  9. Research Micro-Caps that might rise by Orders of Magnitude. Buy them at CoinExchange. (I like EquiTrader $EQT, a $Trio million Micro-Cap only available at CoinExchange.)
  10. Leveraging has a Role. Most traders buy Bitcoin Futures at Bitmex Exchange. Use Futures if you want greater, swifter comes back (at a higher risk). Begin with little trades until you build up practice.

Rule 1: Build the Portfolio on Bitcoin

Bitcoin is the mother lode. It has been good to me and will always form the main part of my crypto portfolio.

Those (mainly low-income copy & paste journalists) claiming Bitcoin is in a bubble are too lazy and/or stupid to become informed. There is no Bitcoin bubble for these reasons.

Bitcoin has had phenomenal growth in its price and MCap since inception. If we exclude other cryptoassets, Bitcoin has been the best performing asset in the world every year since two thousand nine through to June two thousand seventeen with the exception of 2014. It has hammered all global currencies, equities, commodities, bonds, ETFs, real estate across that period. Bubbles are by definition short-lived, they do not keep bubbling for eight years.

As a result it has achieved a MCap of $56 billion and this place in a global table of iconic assets.

Volumes indicate the liquidity of an asset. The greater the liquidity the lighter it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with little liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.

Source: Blocklink.info. Volumes for cryptoassets are fetched from the Coinmarketcap API using the CRYPTOFINANCE Google Sheets Add-On. Volumes for stocks come from Google Finance. You can check the US stocks volume at the NASDAQ site.

Bitcoin’s trading volume is up there with the excellent iconic American stocks.

Bitcoin’s price will proceed to be volatile, but Bitcoin is travelling along a secular bull trend road, and that spectacular volume is not going to evaporate overnight.

Every month fees are ever higher which is watertight evidence of ever greater request to use Bitcoin. That is, people want to send transactions across the blockchain, not just trade on the exchanges.

Tx fees time-series data is maintained at Blockchair.com

Bitcoin and My Portfolio

Bitcoin holds a superior place in my cryptoasset portfolio. As a result of latest switches in UK regulations I have allocated my entire private pension (like a US 401k or retirement account) into Bitcoin via the XBTProvider ETN.

Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when request for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.

Rule Two: Be Bold in these Early Days

Something extreme is happening. The cypto space in June two thousand seventeen is like the Internet space in 1995. It is a good chance, a Taleb Black Swan.

Certainly a bubble will form. (It has not formed yet.) I have lived through various real estate bubbles in the last thirty years, and the DotCom bubble of 1996–2000. It’s human nature to be cautious at very first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and apply the brakes and get the hell out when it shows up to be the later stages.

Rule Trio: Index Track the Top ten Cryptoassets

Until eighteen May two thousand seventeen I held very little Ethereum and zero Ripple in my portfolio.

I made a good mistake in not buying Ethereum and Ripple in two thousand seventeen until eighteen May. My mistake was Bitcoin Maximilism. I refused to have anything to do with Ethereum and Ripple because I didn’t like them. As a result I missed these comes back.

I was applying a misguided 70–30 70–30 rule:

70% of cryptoasset portfolio in Bitcoin, 30% of portfolio in alts

Of that 30% in alts: 70% in high-cap alts (i.e. 21% of portfolio), 30% in low-cap alts (i.e. 9% of portfolio).

I came to my senses on eighteen May, two thousand seventeen when I underwent an epiphany. I then made a fresh (self-imposed) rule : broadly track the Top ten cryptoassets in my portfolio, regardless of my opinion about their individual merits.

I have applied a lithe, discretionary form of index-tracking since then.

I execute index-tracking by hand off this Google Sheet:

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

#News twenty six August 2017: This essay is top of the Google Search for crypos. Please clap for this essay if you are sultry about crypto. I tweet about crypto trading: BambouClub .

#News twenty six August 2017: I keep a crypto trading diary that I regularly update with trading recommendations.

The Ten Rules

26 August 2017: These are my self-imposed rules for trading cryptoassets. I am a self-employed trader with no links to any enterprise. Spectacle of my Portfolio:

Since Entry June 2014: Portfolio is x20.55, i.e. has enlargened 1,955%. My average Bitcoin buy price (June two thousand fourteen to December 2015) was $540. Bitcoin (at its current $Four,350) is x8.05, increase of 705%.

Year to Date (YTD) 2017: My portfolio is x10.Nineteen, i.e. has enlargened 919%. Global Cryptomarket is x8.78, increase of 778%. (From $17.7 billion to $155 billion.) The main successes in my portfolio have been $BTC, $ETH, $EOS (ICO), $XTZ (Tezos ICO), $ZRX (0X ICO), $NEO and $BNB (Binance Coin). These calculations apply to my trading portfolio, and exclude my pension which has been fully invested in a Bitcoin fund since June 2017.

These notes are mainly for my own benefit so I can refer back to them and improve them. I will update it from time to time.

  1. Build the Portfolio on Bitcoin
  2. These are Early Days. Be Bold!
  3. Index Track the Top ten Cryptoassets
  4. Scale Out (Take some Profits)
  5. Buy the Dip, and do not Sell the Dip
  6. Do not Over-Trade. Lock up Coins
  7. Let Profits Run. Cut Losses. Observe 7d Price Switch not 24h or 1h
  8. ICOs are a Excellent Chance. Do Your Own Research. Beware Herd Mentality
  9. Research Micro-Caps that might rise by Orders of Magnitude. Buy them at CoinExchange. (I like EquiTrader $EQT, a $Three million Micro-Cap only available at CoinExchange.)
  10. Leveraging has a Role. Most traders buy Bitcoin Futures at Bitmex Exchange. Use Futures if you want greater, quicker comebacks (at a higher risk). Begin with lil’ trades until you build up practice.

Rule 1: Build the Portfolio on Bitcoin

Bitcoin is the mother lode. It has been good to me and will always form the main part of my crypto portfolio.

Those (mainly low-income copy & paste journalists) claiming Bitcoin is in a bubble are too lazy and/or stupid to become informed. There is no Bitcoin bubble for these reasons.

Bitcoin has had phenomenal growth in its price and MCap since inception. If we exclude other cryptoassets, Bitcoin has been the best performing asset in the world every year since two thousand nine through to June two thousand seventeen with the exception of 2014. It has hammered all global currencies, equities, commodities, bonds, ETFs, real estate across that period. Bubbles are by definition short-lived, they do not keep bubbling for eight years.

As a result it has achieved a MCap of $56 billion and this place in a global table of iconic assets.

Volumes indicate the liquidity of an asset. The greater the liquidity the lighter it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with little liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.

Source: Blocklink.info. Volumes for cryptoassets are fetched from the Coinmarketcap API using the CRYPTOFINANCE Google Sheets Add-On. Volumes for stocks come from Google Finance. You can check the US stocks volume at the NASDAQ site.

Bitcoin’s trading volume is up there with the superb iconic American stocks.

Bitcoin’s price will proceed to be volatile, but Bitcoin is travelling along a secular bull trend road, and that spectacular volume is not going to evaporate overnight.

Every month fees are ever higher which is watertight evidence of ever greater request to use Bitcoin. That is, people want to send transactions across the blockchain, not just trade on the exchanges.

Tx fees time-series data is maintained at Blockchair.com

Bitcoin and My Portfolio

Bitcoin holds a superior place in my cryptoasset portfolio. As a result of latest switches in UK regulations I have allocated my entire private pension (like a US 401k or retirement account) into Bitcoin via the XBTProvider ETN.

Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when request for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.

Rule Two: Be Bold in these Early Days

Something extreme is happening. The cypto space in June two thousand seventeen is like the Internet space in 1995. It is a good chance, a Taleb Black Swan.

Certainly a bubble will form. (It has not formed yet.) I have lived through various real estate bubbles in the last thirty years, and the DotCom bubble of 1996–2000. It’s human nature to be cautious at very first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and apply the brakes and get the hell out when it shows up to be the later stages.

Rule Three: Index Track the Top ten Cryptoassets

Until eighteen May two thousand seventeen I held very little Ethereum and zero Ripple in my portfolio.

I made a good mistake in not buying Ethereum and Ripple in two thousand seventeen until eighteen May. My mistake was Bitcoin Maximilism. I refused to have anything to do with Ethereum and Ripple because I didn’t like them. As a result I missed these comebacks.

I was applying a misguided 70–30 70–30 rule:

70% of cryptoasset portfolio in Bitcoin, 30% of portfolio in alts

Of that 30% in alts: 70% in high-cap alts (i.e. 21% of portfolio), 30% in low-cap alts (i.e. 9% of portfolio).

I came to my senses on eighteen May, two thousand seventeen when I underwent an epiphany. I then made a fresh (self-imposed) rule : broadly track the Top ten cryptoassets in my portfolio, regardless of my opinion about their individual merits.

I have applied a limber, discretionary form of index-tracking since then.

I execute index-tracking by hand off this Google Sheet:

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

#News twenty six August 2017: This essay is top of the Google Search for crypos. Please clap for this essay if you are sultry about crypto. I tweet about crypto trading: BambouClub .

#News twenty six August 2017: I keep a crypto trading diary that I regularly update with trading recommendations.

The Ten Rules

26 August 2017: These are my self-imposed rules for trading cryptoassets. I am a self-employed trader with no links to any enterprise. Spectacle of my Portfolio:

Since Entry June 2014: Portfolio is x20.55, i.e. has enhanced 1,955%. My average Bitcoin buy price (June two thousand fourteen to December 2015) was $540. Bitcoin (at its current $Four,350) is x8.05, increase of 705%.

Year to Date (YTD) 2017: My portfolio is x10.Nineteen, i.e. has enhanced 919%. Global Cryptomarket is x8.78, increase of 778%. (From $17.7 billion to $155 billion.) The main successes in my portfolio have been $BTC, $ETH, $EOS (ICO), $XTZ (Tezos ICO), $ZRX (0X ICO), $NEO and $BNB (Binance Coin). These calculations apply to my trading portfolio, and exclude my pension which has been fully invested in a Bitcoin fund since June 2017.

These notes are mainly for my own benefit so I can refer back to them and improve them. I will update it from time to time.

  1. Build the Portfolio on Bitcoin
  2. These are Early Days. Be Bold!
  3. Index Track the Top ten Cryptoassets
  4. Scale Out (Take some Profits)
  5. Buy the Dip, and do not Sell the Dip
  6. Do not Over-Trade. Lock up Coins
  7. Let Profits Run. Cut Losses. Observe 7d Price Switch not 24h or 1h
  8. ICOs are a Fine Chance. Do Your Own Research. Beware Herd Mentality
  9. Research Micro-Caps that might rise by Orders of Magnitude. Buy them at CoinExchange. (I like EquiTrader $EQT, a $Three million Micro-Cap only available at CoinExchange.)
  10. Leveraging has a Role. Most traders buy Bitcoin Futures at Bitmex Exchange. Use Futures if you want greater, swifter comebacks (at a higher risk). Embark with lil’ trades until you build up practice.

Rule 1: Build the Portfolio on Bitcoin

Bitcoin is the mother lode. It has been good to me and will always form the main part of my crypto portfolio.

Those (mainly low-income copy & paste journalists) claiming Bitcoin is in a bubble are too lazy and/or stupid to become informed. There is no Bitcoin bubble for these reasons.

Bitcoin has had phenomenal growth in its price and MCap since inception. If we exclude other cryptoassets, Bitcoin has been the best performing asset in the world every year since two thousand nine through to June two thousand seventeen with the exception of 2014. It has hammered all global currencies, equities, commodities, bonds, ETFs, real estate across that period. Bubbles are by definition short-lived, they do not keep bubbling for eight years.

As a result it has achieved a MCap of $56 billion and this place in a global table of iconic assets.

Volumes indicate the liquidity of an asset. The greater the liquidity the lighter it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with lil’ liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.

Source: Blocklink.info. Volumes for cryptoassets are fetched from the Coinmarketcap API using the CRYPTOFINANCE Google Sheets Add-On. Volumes for stocks come from Google Finance. You can check the US stocks volume at the NASDAQ site.

Bitcoin’s trading volume is up there with the good iconic American stocks.

Bitcoin’s price will proceed to be volatile, but Bitcoin is travelling along a secular bull trend road, and that spectacular volume is not going to evaporate overnight.

Every month fees are ever higher which is watertight evidence of ever greater request to use Bitcoin. That is, people want to send transactions across the blockchain, not just trade on the exchanges.

Tx fees time-series data is maintained at Blockchair.com

Bitcoin and My Portfolio

Bitcoin holds a superior place in my cryptoasset portfolio. As a result of latest switches in UK regulations I have allocated my entire individual pension (like a US 401k or retirement account) into Bitcoin via the XBTProvider ETN.

Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when request for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.

Rule Two: Be Bold in these Early Days

Something extreme is happening. The cypto space in June two thousand seventeen is like the Internet space in 1995. It is a superb chance, a Taleb Black Swan.

Certainly a bubble will form. (It has not formed yet.) I have lived through various real estate bubbles in the last thirty years, and the DotCom bubble of 1996–2000. It’s human nature to be cautious at very first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and apply the brakes and get the hell out when it shows up to be the later stages.

Rule Three: Index Track the Top ten Cryptoassets

Until eighteen May two thousand seventeen I held very little Ethereum and zero Ripple in my portfolio.

I made a fine mistake in not buying Ethereum and Ripple in two thousand seventeen until eighteen May. My mistake was Bitcoin Maximilism. I refused to have anything to do with Ethereum and Ripple because I didn’t like them. As a result I missed these comebacks.

I was applying a misguided 70–30 70–30 rule:

70% of cryptoasset portfolio in Bitcoin, 30% of portfolio in alts

Of that 30% in alts: 70% in high-cap alts (i.e. 21% of portfolio), 30% in low-cap alts (i.e. 9% of portfolio).

I came to my senses on eighteen May, two thousand seventeen when I underwent an epiphany. I then made a fresh (self-imposed) rule : broadly track the Top ten cryptoassets in my portfolio, regardless of my opinion about their individual merits.

I have applied a nimble, discretionary form of index-tracking since then.

I execute index-tracking by hand off this Google Sheet:

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

#News twenty six August 2017: This essay is top of the Google Search for crypos. Please clap for this essay if you are sultry about crypto. I tweet about crypto trading: BambouClub .

#News twenty six August 2017: I keep a crypto trading diary that I regularly update with trading recommendations.

The Ten Rules

26 August 2017: These are my self-imposed rules for trading cryptoassets. I am a self-employed trader with no links to any enterprise. Spectacle of my Portfolio:

Since Entry June 2014: Portfolio is x20.55, i.e. has enlargened 1,955%. My average Bitcoin buy price (June two thousand fourteen to December 2015) was $540. Bitcoin (at its current $Four,350) is x8.05, increase of 705%.

Year to Date (YTD) 2017: My portfolio is x10.Nineteen, i.e. has enhanced 919%. Global Cryptomarket is x8.78, increase of 778%. (From $17.7 billion to $155 billion.) The main successes in my portfolio have been $BTC, $ETH, $EOS (ICO), $XTZ (Tezos ICO), $ZRX (0X ICO), $NEO and $BNB (Binance Coin). These calculations apply to my trading portfolio, and exclude my pension which has been fully invested in a Bitcoin fund since June 2017.

These notes are mainly for my own benefit so I can refer back to them and improve them. I will update it from time to time.

  1. Build the Portfolio on Bitcoin
  2. These are Early Days. Be Bold!
  3. Index Track the Top ten Cryptoassets
  4. Scale Out (Take some Profits)
  5. Buy the Dip, and do not Sell the Dip
  6. Do not Over-Trade. Lock up Coins
  7. Let Profits Run. Cut Losses. See 7d Price Switch not 24h or 1h
  8. ICOs are a Excellent Chance. Do Your Own Research. Beware Herd Mentality
  9. Research Micro-Caps that might rise by Orders of Magnitude. Buy them at CoinExchange. (I like EquiTrader $EQT, a $Three million Micro-Cap only available at CoinExchange.)
  10. Leveraging has a Role. Most traders buy Bitcoin Futures at Bitmex Exchange. Use Futures if you want greater, quicker comebacks (at a higher risk). Commence with lil’ trades until you build up practice.

Rule 1: Build the Portfolio on Bitcoin

Bitcoin is the mother lode. It has been good to me and will always form the main part of my crypto portfolio.

Those (mainly low-income copy & paste journalists) claiming Bitcoin is in a bubble are too lazy and/or stupid to become informed. There is no Bitcoin bubble for these reasons.

Bitcoin has had phenomenal growth in its price and MCap since inception. If we exclude other cryptoassets, Bitcoin has been the best performing asset in the world every year since two thousand nine through to June two thousand seventeen with the exception of 2014. It has hammered all global currencies, equities, commodities, bonds, ETFs, real estate across that period. Bubbles are by definition short-lived, they do not keep bubbling for eight years.

As a result it has achieved a MCap of $56 billion and this place in a global table of iconic assets.

Volumes indicate the liquidity of an asset. The greater the liquidity the lighter it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with little liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.

Source: Blocklink.info. Volumes for cryptoassets are fetched from the Coinmarketcap API using the CRYPTOFINANCE Google Sheets Add-On. Volumes for stocks come from Google Finance. You can check the US stocks volume at the NASDAQ site.

Bitcoin’s trading volume is up there with the fine iconic American stocks.

Bitcoin’s price will proceed to be volatile, but Bitcoin is travelling along a secular bull trend road, and that spectacular volume is not going to evaporate overnight.

Every month fees are ever higher which is watertight evidence of ever greater request to use Bitcoin. That is, people want to send transactions across the blockchain, not just trade on the exchanges.

Tx fees time-series data is maintained at Blockchair.com

Bitcoin and My Portfolio

Bitcoin holds a superior place in my cryptoasset portfolio. As a result of latest switches in UK regulations I have allocated my entire individual pension (like a US 401k or retirement account) into Bitcoin via the XBTProvider ETN.

Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when request for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.

Rule Two: Be Bold in these Early Days

Something extreme is happening. The cypto space in June two thousand seventeen is like the Internet space in 1995. It is a excellent chance, a Taleb Black Swan.

Certainly a bubble will form. (It has not formed yet.) I have lived through various real estate bubbles in the last thirty years, and the DotCom bubble of 1996–2000. It’s human nature to be cautious at very first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and apply the brakes and get the hell out when it emerges to be the later stages.

Rule Trio: Index Track the Top ten Cryptoassets

Until eighteen May two thousand seventeen I held very little Ethereum and zero Ripple in my portfolio.

I made a good mistake in not buying Ethereum and Ripple in two thousand seventeen until eighteen May. My mistake was Bitcoin Maximilism. I refused to have anything to do with Ethereum and Ripple because I didn’t like them. As a result I missed these comes back.

I was applying a misguided 70–30 70–30 rule:

70% of cryptoasset portfolio in Bitcoin, 30% of portfolio in alts

Of that 30% in alts: 70% in high-cap alts (i.e. 21% of portfolio), 30% in low-cap alts (i.e. 9% of portfolio).

I came to my senses on eighteen May, two thousand seventeen when I underwent an epiphany. I then made a fresh (self-imposed) rule : broadly track the Top ten cryptoassets in my portfolio, regardless of my opinion about their individual merits.

I have applied a supple, discretionary form of index-tracking since then.

I execute index-tracking by hand off this Google Sheet:

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

#News twenty six August 2017: This essay is top of the Google Search for crypos. Please clap for this essay if you are sultry about crypto. I tweet about crypto trading: BambouClub .

#News twenty six August 2017: I keep a crypto trading diary that I regularly update with trading recommendations.

The Ten Rules

26 August 2017: These are my self-imposed rules for trading cryptoassets. I am a self-employed trader with no links to any enterprise. Spectacle of my Portfolio:

Since Entry June 2014: Portfolio is x20.55, i.e. has enhanced 1,955%. My average Bitcoin buy price (June two thousand fourteen to December 2015) was $540. Bitcoin (at its current $Four,350) is x8.05, increase of 705%.

Year to Date (YTD) 2017: My portfolio is x10.Nineteen, i.e. has enhanced 919%. Global Cryptomarket is x8.78, increase of 778%. (From $17.7 billion to $155 billion.) The main successes in my portfolio have been $BTC, $ETH, $EOS (ICO), $XTZ (Tezos ICO), $ZRX (0X ICO), $NEO and $BNB (Binance Coin). These calculations apply to my trading portfolio, and exclude my pension which has been fully invested in a Bitcoin fund since June 2017.

These notes are mainly for my own benefit so I can refer back to them and improve them. I will update it from time to time.

  1. Build the Portfolio on Bitcoin
  2. These are Early Days. Be Bold!
  3. Index Track the Top ten Cryptoassets
  4. Scale Out (Take some Profits)
  5. Buy the Dip, and do not Sell the Dip
  6. Do not Over-Trade. Lock up Coins
  7. Let Profits Run. Cut Losses. See 7d Price Switch not 24h or 1h
  8. ICOs are a Fine Chance. Do Your Own Research. Beware Herd Mentality
  9. Research Micro-Caps that might rise by Orders of Magnitude. Buy them at CoinExchange. (I like EquiTrader $EQT, a $Three million Micro-Cap only available at CoinExchange.)
  10. Leveraging has a Role. Most traders buy Bitcoin Futures at Bitmex Exchange. Use Futures if you want greater, quicker comes back (at a higher risk). Commence with lil’ trades until you build up practice.

Rule 1: Build the Portfolio on Bitcoin

Bitcoin is the mother lode. It has been good to me and will always form the main part of my crypto portfolio.

Those (mainly low-income copy & paste journalists) claiming Bitcoin is in a bubble are too lazy and/or stupid to become informed. There is no Bitcoin bubble for these reasons.

Bitcoin has had phenomenal growth in its price and MCap since inception. If we exclude other cryptoassets, Bitcoin has been the best performing asset in the world every year since two thousand nine through to June two thousand seventeen with the exception of 2014. It has hammered all global currencies, equities, commodities, bonds, ETFs, real estate via that period. Bubbles are by definition short-lived, they do not keep bubbling for eight years.

As a result it has achieved a MCap of $56 billion and this place in a global table of iconic assets.

Volumes indicate the liquidity of an asset. The greater the liquidity the lighter it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with little liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.

Source: Blocklink.info. Volumes for cryptoassets are fetched from the Coinmarketcap API using the CRYPTOFINANCE Google Sheets Add-On. Volumes for stocks come from Google Finance. You can check the US stocks volume at the NASDAQ site.

Bitcoin’s trading volume is up there with the superb iconic American stocks.

Bitcoin’s price will proceed to be volatile, but Bitcoin is travelling along a secular bull trend road, and that spectacular volume is not going to evaporate overnight.

Every month fees are ever higher which is watertight evidence of ever greater request to use Bitcoin. That is, people want to send transactions across the blockchain, not just trade on the exchanges.

Tx fees time-series data is maintained at Blockchair.com

Bitcoin and My Portfolio

Bitcoin holds a superior place in my cryptoasset portfolio. As a result of latest switches in UK regulations I have allocated my entire individual pension (like a US 401k or retirement account) into Bitcoin via the XBTProvider ETN.

Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when request for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.

Rule Two: Be Bold in these Early Days

Something extreme is happening. The cypto space in June two thousand seventeen is like the Internet space in 1995. It is a excellent chance, a Taleb Black Swan.

Certainly a bubble will form. (It has not formed yet.) I have lived through various real estate bubbles in the last thirty years, and the DotCom bubble of 1996–2000. It’s human nature to be cautious at very first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and apply the brakes and get the hell out when it emerges to be the later stages.

Rule Trio: Index Track the Top ten Cryptoassets

Until eighteen May two thousand seventeen I held very little Ethereum and zero Ripple in my portfolio.

I made a superb mistake in not buying Ethereum and Ripple in two thousand seventeen until eighteen May. My mistake was Bitcoin Maximilism. I refused to have anything to do with Ethereum and Ripple because I didn’t like them. As a result I missed these comes back.

I was applying a misguided 70–30 70–30 rule:

70% of cryptoasset portfolio in Bitcoin, 30% of portfolio in alts

Of that 30% in alts: 70% in high-cap alts (i.e. 21% of portfolio), 30% in low-cap alts (i.e. 9% of portfolio).

I came to my senses on eighteen May, two thousand seventeen when I underwent an epiphany. I then made a fresh (self-imposed) rule : broadly track the Top ten cryptoassets in my portfolio, regardless of my opinion about their individual merits.

I have applied a supple, discretionary form of index-tracking since then.

I execute index-tracking by hand off this Google Sheet:

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

Ten Rules for Trading Bitcoin, Ethereum, and Other Crypto

#News twenty six August 2017: This essay is top of the Google Search for crypos. Please clap for this essay if you are sultry about crypto. I tweet about crypto trading: BambouClub .

#News twenty six August 2017: I keep a crypto trading diary that I regularly update with trading recommendations.

The Ten Rules

26 August 2017: These are my self-imposed rules for trading cryptoassets. I am a self-employed trader with no links to any enterprise. Spectacle of my Portfolio:

Since Entry June 2014: Portfolio is x20.55, i.e. has enlargened 1,955%. My average Bitcoin buy price (June two thousand fourteen to December 2015) was $540. Bitcoin (at its current $Four,350) is x8.05, increase of 705%.

Year to Date (YTD) 2017: My portfolio is x10.Nineteen, i.e. has enlargened 919%. Global Cryptomarket is x8.78, increase of 778%. (From $17.7 billion to $155 billion.) The main successes in my portfolio have been $BTC, $ETH, $EOS (ICO), $XTZ (Tezos ICO), $ZRX (0X ICO), $NEO and $BNB (Binance Coin). These calculations apply to my trading portfolio, and exclude my pension which has been fully invested in a Bitcoin fund since June 2017.

These notes are mainly for my own benefit so I can refer back to them and improve them. I will update it from time to time.

  1. Build the Portfolio on Bitcoin
  2. These are Early Days. Be Bold!
  3. Index Track the Top ten Cryptoassets
  4. Scale Out (Take some Profits)
  5. Buy the Dip, and do not Sell the Dip
  6. Do not Over-Trade. Lock up Coins
  7. Let Profits Run. Cut Losses. See 7d Price Switch not 24h or 1h
  8. ICOs are a Excellent Chance. Do Your Own Research. Beware Herd Mentality
  9. Research Micro-Caps that might rise by Orders of Magnitude. Buy them at CoinExchange. (I like EquiTrader $EQT, a $Trio million Micro-Cap only available at CoinExchange.)
  10. Leveraging has a Role. Most traders buy Bitcoin Futures at Bitmex Exchange. Use Futures if you want greater, swifter comes back (at a higher risk). Embark with lil’ trades until you build up practice.

Rule 1: Build the Portfolio on Bitcoin

Bitcoin is the mother lode. It has been good to me and will always form the main part of my crypto portfolio.

Those (mainly low-income copy & paste journalists) claiming Bitcoin is in a bubble are too lazy and/or stupid to become informed. There is no Bitcoin bubble for these reasons.

Bitcoin has had phenomenal growth in its price and MCap since inception. If we exclude other cryptoassets, Bitcoin has been the best performing asset in the world every year since two thousand nine through to June two thousand seventeen with the exception of 2014. It has hammered all global currencies, equities, commodities, bonds, ETFs, real estate across that period. Bubbles are by definition short-lived, they do not keep bubbling for eight years.

As a result it has achieved a MCap of $56 billion and this place in a global table of iconic assets.

Volumes indicate the liquidity of an asset. The greater the liquidity the lighter it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with little liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.

Source: Blocklink.info. Volumes for cryptoassets are fetched from the Coinmarketcap API using the CRYPTOFINANCE Google Sheets Add-On. Volumes for stocks come from Google Finance. You can check the US stocks volume at the NASDAQ site.

Bitcoin’s trading volume is up there with the excellent iconic American stocks.

Bitcoin’s price will proceed to be volatile, but Bitcoin is travelling along a secular bull trend road, and that spectacular volume is not going to evaporate overnight.

Every month fees are ever higher which is watertight evidence of ever greater request to use Bitcoin. That is, people want to send transactions across the blockchain, not just trade on the exchanges.

Tx fees time-series data is maintained at Blockchair.com

Bitcoin and My Portfolio

Bitcoin holds a superior place in my cryptoasset portfolio. As a result of latest switches in UK regulations I have allocated my entire private pension (like a US 401k or retirement account) into Bitcoin via the XBTProvider ETN.

Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when request for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.

Rule Two: Be Bold in these Early Days

Something extreme is happening. The cypto space in June two thousand seventeen is like the Internet space in 1995. It is a fine chance, a Taleb Black Swan.

Certainly a bubble will form. (It has not formed yet.) I have lived through various real estate bubbles in the last thirty years, and the DotCom bubble of 1996–2000. It’s human nature to be cautious at very first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and apply the brakes and get the hell out when it shows up to be the later stages.

Rule Trio: Index Track the Top ten Cryptoassets

Until eighteen May two thousand seventeen I held very little Ethereum and zero Ripple in my portfolio.

I made a superb mistake in not buying Ethereum and Ripple in two thousand seventeen until eighteen May. My mistake was Bitcoin Maximilism. I refused to have anything to do with Ethereum and Ripple because I didn’t like them. As a result I missed these comebacks.

I was applying a misguided 70–30 70–30 rule:

70% of cryptoasset portfolio in Bitcoin, 30% of portfolio in alts

Of that 30% in alts: 70% in high-cap alts (i.e. 21% of portfolio), 30% in low-cap alts (i.e. 9% of portfolio).

I came to my senses on eighteen May, two thousand seventeen when I underwent an epiphany. I then made a fresh (self-imposed) rule : broadly track the Top ten cryptoassets in my portfolio, regardless of my opinion about their individual merits.

I have applied a pliable, discretionary form of index-tracking since then.

I execute index-tracking by hand off this Google Sheet:

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