A Simple Yet Powerful Strategy
Here's a simple yet powerful strategy that can revolutionise your crypto trading and investing. It’s so straightforward, yet surprisingly underutilised.
It will solve all your problems and help you achieve a perfect balance of strategy and emotional stability.
The Fear That Stops You Selling
There’s a huge issue that almost every single crypto trader faces, which blocks them from taking profits and capitalising on what the market gives them. It’s not even greed, it’s fear. The fear of parting with their coins in the event that it goes higher.
This is what spawned the epidemic of the crypto “HODL” culture. Short for “Hold On For Dear Life”, this phrase has caused over 90% of crypto investors to build a deep emotional connection with their coins, treating each Bitcoin and altcoin as a treasured asset they must never sell, with the fear and belief that prices will go up forever and they’ll be missing out.
The Harsh Reality
At the core of it all, you’re here to make money. You don't make anything if you never press 'SELL'.
Until the moment you press that sell button, you’re in fantasy land, staring at pixels on a screen giving you a false sense of value that does not reflect reality until the sell button is pressed and that money is back in your possession.
It’s like celebrating being a millionaire on GTA or a simulated online casino; it’s not real until the money can be spent.
Remember Crypto Is An Investment
It's important to remember that cryptocurrencies are investments like any other. The goal is to risk a designated amount of capital, with the potential for a return on that capital over the foreseeable future.
While it’s easy to be dazzled by the stories of people who held Bitcoin since 2011 and became multi-millionaires, the game has changed. If you were to invest $100 in Bitcoin now, it would need to reach $200,000 per BTC for you to double your money. The potential for significant financial gain remains, but the landscape has changed.
Acknowledge The Uncertainty
It's also important to acknowledge that the future of crypto is uncertain. None of us could have predicted that Bitcoin would be trading at such high prices. This uncertainty is a source of the fear that prevents many from selling their coins. We're all navigating uncharted territory when it comes to the markets.
The Simple Solution
There is a solution to this dilemma, and it’s incredibly easy.
Take your portfolio and split it in half. Let’s split it into quarters.
Let me explain.
How To Split Your Portfolio
Let’s say you have $50,000 in Bitcoin and want to continue holding it for the foreseeable future, in case prices continue rising over the long term. The likelihood is that throughout the duration of that holding, you will be weathering considerable ups and downs.
If you’ve been here long enough, you will be no stranger to growth of several hundred, if not thousands of per cent, to the upside, whilst embracing the crippling pain of going down fifty per cent, even upwards of 90% drawdown during the crypto bear markets.
Instead of holding through this horrific ordeal, becoming an emotionally vulnerable puppet thrown around by the strings being pulled by the market, why not capitalise and have at the same time?
The First Step
The first step is to create a new portfolio on a different crypto exchange or the same one.
It’s worth mentioning that this is not always applicable, as many cryptocurrency exchanges, such as Binance, Kraken, Kucoin, Bitstamp, and MEXC, do not allow multiple user accounts to be created.
The solution to this is to segregate an allocation of your crypto, so that mentally you will be willing to part with and sell.
In the example of having $50,000 BTC, currently around 0.5 BTC, you could treat 0.1 BTC as non-existent and no longer a part of your overall holdings. You detach from this number and treat it as a separate entity.
The Psychological Secret
If you set up another account on a cryptocurrency exchange, send this number to the new portfolio and treat it as a separate account—the secret lies in striking a delicate balance of psychology.
There’s no set percentage to allocate; you must choose a number that is perfectly aligned with what you’re comfortable holding and what you are comfortable selling.
You want to find the fine line between the number you’re comfortable holding, especially since what you do on the new portfolio will not emotionally impact your holding portfolio.
Two Portfolios, One Goal
Congratulations! You now have a HODL portfolio and an actively traded portfolio.
This is something we have taught our members over the years to initiate, and it has revolutionised their trading results.
It’s a significant role player in one of our many crypto trading and investing strategies, serving as the groundwork for everything else we then teach.
It’s so simple, yet it solves everyone’s problems. We have no attachment to our coins, but we understand that many people do, so we developed this formula to help revolutionise the process.
How It Works In Practice
Seeing as you’re already adopting a HODL approach and have likely built the resilience to weather volatility in the markets, you can now leave this money to run over the long term, whilst actively capitalising on a small fraction of your overall portfolio throughout the holding process.
You don’t even have to split your existing holdings into chunks; you can build a separate portfolio with fresh money and treat that as your new account instead of constantly investing new money into the market.
You Don’t Need To Be A Genius
You don’t need to be a genius for this either; this is where we come in to help you understand how to handle and invest in the more actively traded side.
This formula doesn’t just show you how to make money while holding your crypto over the long term, but it also helps you emotionally and financially in bear markets.
Why This Beats The Traditional HODL Approach
A traditional HODL approach in crypto is to hold Bitcoin and your altcoins in a portfolio through every up and down.
Experiencing the overwhelming thrill and joy that comes with the bull market profits.
Only to not end up taking any profits in the bull market, naturally progressing to experiencing the horrors and pain that come with watching it all burn to the ground in bear markets or periods of negative fundamental news.
Whilst this formula will still help you weather those periods of drawdown during bear markets and downward market periods, with our education, app, guidance, and psychological tools, you’ll be securing profits on the secondary portfolio throughout this journey.
This will remove the pain entirely, because you’re taking profits and making money you wouldn’t have had before, while still holding the same amount of crypto in the HODL portfolio and growing your funds in a separate entity on the side.
Bear Market Protection
The best part? Those profits serve as a protection mechanism when the bear market reaches its worst point, the devastating blow that leads thousands of crypto traders and investors to capitulate and sell at a loss.
Instead, you’ll have profits and be smiling with a wide grin as you can now buy even more coins for significantly cheaper, continuing to grow your HODL position.
Over time, you will have even more crypto and a stronger foundation and position to make money in future crypto bull markets and alt seasons without ever touching the original portfolio. It will only ever grow over time.
Why We Teach This
We’re called Innovation Markets for a reason. This is just one of many tools in our utility belt.