A Bitcoin whale known for making his opinions very public is promoting an investment strategy that he says most crypto traders overlook.
The pseudonymous trader known as Joe007 says smart traders monitor Bitcoin’s long-term price movements, selling their position when BTC has increased 10x and buying when Bitcoin has decreased 5x from its top. The trader, who is known for placing large bets on the exchange Bitfinex, calls the method a “simple and effective investment strategy that allows anyone to become a whale within reasonable timeframe.”
Although diminishing returns will eventually kick in and eliminate the viability of the strategy, Joe believes the 10x/5x rule will hold up for at least the next couple of cycles. The trader believes Bitcoin is currently too volatile to take the “buy and never sell” approach.
Joe says the repeating waves of highs and lows match the buzz on the street about BTC.
“Buy BTC when it’s way down and everyone and their dog barks about how it’s going to zero soon, and sell it when it’s way up and a boomer neighbor asks you for tips how to get into ‘the next bit coin'”.
Joe007 also says Bitcoin’s halvings will start to matter less cycle-to-cycle.
“Halvings may have served as major drivers of supply/demand imbalance in early cycles but over time changes in demand side will be playing a much bigger role, IMHO.”
In terms of his personal portfolio, the trader says that in addition to Bitcoin, he parks a “non-trivial” amount of his fiat in Tether (USDT) to hedge against “banking system failure”.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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