Reverse DCA - The Way To Succeed In Crypto

We plan for the best and the worst and set our investing targets.

We have already explored in previous articles how to improve our results and how to spot the market top and bottoms, although we concluded this can’t be done with accuracy. We do not know where exactly the prices will bottom during a bear market.

Thus the best approach is to DCA (Dollar-cost average) when prices are down by about 70–80% (now?) and use a reverse-DCA approach after prices reach unrealistic targets.

Don’t forget to sell, but do it with style. If you dump it, you lose potential rewards that might be life-changing wealth.

Reverse-DCA is the best approach we can take to take profits and start de-investing during a parabolic bull run in crypto.

Awareness is limited

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Testing and retesting give us a better indicator. Even writing about the secret sauce of crypto doesn’t concern anyone at this point, so perhaps we are getting closer to the bottom.

The following article was one of the least popular I’ve ever published, with just 67 views on read.cash and perhaps zero reads, since the few comments were not really on point.

How To Be SUCCESSFUL In Crypto! Following The Market Cycles

So, this is a good indicator since, otherwise, I’d be alarmed. This means nothing will change in the following cycle with the fourth Bitcoin halving.

Why do I write this here, then? Well, nobody will read it! Almost nobody, a few will, perhaps 10-20 people will read it, but this will change nothing for the cycle. It would take global awareness of the crypto market cycles to stop the next wave of speculation and bull run.

Talking about the BTC halving is a concept that still not many understand, yet this is the exact mechanism that creates the boom and bust cycles.

While I have mentioned dollar-cost-averaging, I've always explained this technique does not work at all times in crypto. It works well, though, when the prices are down by 70–80%.

Also, NO, DCA does not mean you buy low and sell high as I've read elsewhere. Do yourself a favor and research the topic. It is not buy low, sell high. This is totally different. It is a technique that will average prices when buying / investing, but as it stands it doesn't explain when to begin selling and how to sell.

There is plenty of information available on Investopedia on the topic and perhaps check YouTube too, since I remember a few folks explaining the topic CORRECTLY, though. Reading comments about a guy that bought low and sold for 30% profit and claiming this was DCA is just misinformation.

What to do when prices recover

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FFS don’t hodl for five-ten years. It is the highest risk move, and rewards are not equal to the risk you undertake.

Unless, of course, this is just a tiny part of your overall investment which doesn’t somehow reach an incredible height to consider again. Hodl usually is wrong.

During the bull run sell 10% of the total investment after the price of crypto you held for two years is up by 1,000%. After that 10x there is potential for a second one. Do you want to miss it?

Of course, this implies we’ve already ceased DCA’ing.

When should you stop the DCA process? Probably when the prices double, since when you started. It is up to everyone’s strategy.

Just start doing the opposite of DCAing once prices reach extreme levels and euphoria is in the air.

Many crypto have potential for a 100x (10,000%), so we do not need to be greedy.

As the price keeps rising, keep selling. In the end, we will have acquired unimaginable profit and still hold part of our initial investment, perhaps worth way more.

We take profits to make it worthwhile. Remember this. We will first suffer from two years of bear market, and everyone’s portfolio will be down by 90%. Some are already there, and there’s potential for another 90% drop.So, there’s always a threat that the bottom is not in, yet. This is the risk we undertake when investing. We have to be ready to acknowledge it, and keep dca’ing until the new bull begins.

This strategy worked flawlessly for those that correctly applied it.

Don’t sell everything, since you never know how high prices can go. Sell in steps, just as we bought in steps.

No, we are not even close to the bottom, yet. It can take another six months or maybe a year more. The worst would be another 18 months, but this case has limited odds.

You should not expect profit with dca'ing in the next year from crypto. This should be a plan to accumulate into projects you truly believe, have researched thoroughly and concluded they have a ready product that can instill adoption, work towards securing decentralization and have a userbase that will support it extensively for years.

At this time, what can I recommend?

My followers probably know Bitcoin Cash is my favorite coin, but with investing, you can't put all your eggs in one basket.

Pick your winners early and hold and wait for the right time. Don't sell too early. If you look for a quick profit like a quick double up, and sell everything, you will miss an incredible opportunity.

A second approach that eliminates risk is this one: Sell half of your investment in a cryptocurrency that doubled up. 100% profit is not easy, but when this is achieved, an investor eliminates risk by selling half of the investment. This means you take your initial capital out, and the rest half is the profit left you can hodl forever.

In Conclusion

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The maximalists' narrow-minded approach has its pros and cons as an investment strategy but doesn't stand logically.

Only Bitcoin. What does that even mean? We talk about money here, seriously, not your favorite football team, rapper, or religion. What does fanaticism has to do with money?

Be reasonable and avoid any such narratives from messing with our investment.

The next time will be the one I'm going to make it all work correctly as this time I was about 50-60% there. As usual events outside of crypto coincided with the end of the bull market, which didn't surprise me the least this time. We have to know what to expect.

Five years into this and I remember the advice of fellow traders back when I started:

Take profits. If you don't you will be the exit liquidity of other traders/investors.

• Cover Image: by nattanan23 on Pixabay

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