Bitcoin: It Is All About Buy Low And Sell High

The total cryptocurrency market capitalization is sitting under $300 billion as the digital assets continue to get crushed leading Bitcoin and Altcoins lower. Bearish red volume is creeping up signalling a significant increase in selling confirming the strong bear trend present since December. From a technical standpoint Bitcoin looks weak, breaking critical support levels sending price headed towards the next major support around $6,000. Fundamentals are improving with progress stretching from ETF launches to regulatory progress, with the market still remaining bearish.

From a technical standpoint for Bitcoin, the price has broken towards the downside out of the symmetrical triangle pattern. This is a bearish sign and if the price stays below this pattern, the downtrend would continue.

No one said it is easy.

But the fundamental concept is very simple: buy low and sell high.

The difficulty lies in the execution and the primary challenge is controlling one’s emotions. Here are a few tips that work for me:

-Only invest what I can afford to lose -Take time away from crypto: go to the gym, walk the dog, hang out with friends, read a book -I think of my exit strategy every single day’ -Keep greed in check by being ambitious in other areas so I’m not counting on crypto to get rich.

I will get rich one way or another.

-Even if I don’t get rich, who cares? It’s just money.

We can have meaningful lives with modest standards of living.

-Use limit orders -Maintain Abundance Mentality to defeat FOMO.

There will always be another coin going to the moon.

There will always be another dip to get back in to your coin.

-Avoid emotional attachment to a coin.

This is me so far…

Bought ETH between $220 and $370 (but heavily weighted toward $370).

Ready for a rough ride.

Joking aside: if you buy high and it dips/crashes — buy the dip… have your average be lower and then in 5 years you will have much larger gains. Make sure you are investing in something that is not a shitcoin or hypecoin.

If you’re really nuts you can employ a Martingale strategy and double your initial investment every time you buy a dip (supposing it keeps going against you). Can be REALLY shitty, but can also be REALLY awesome.

This is the problem with any market imho. People buy and sell based on some random numbers and how they feel about it. It’s just so wrong!

People should buy/sell based on the shape of the chart.

The following is a write-up of the speech that I did for bitfwd on Friday 20th at UNSW on arbitrage.

It has been edited for conciseness and formatting.

The corresponding slides can be found here.

It is aimed at those with relatively little exposure to finance and cryptocurrency and want to get started with trading. I talk generally about one type of trading strategy — arbitrage — and how you can get started here. Apologies if I oversimplify some concepts — I aim for clarity and a stepping stone, rather than technical depth.

Feel free to email me at stefan@virgilcap.com if you have any questions. Thanks!

Arbitrage is when you buy and sell an asset at pretty much the same time to make a profit from the price difference.

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