Ladies and gentlemen,
I am currently trying to set up and asset management strategy for my crypto currencies.
I hope to find some experienced people who might want to share their way which works for them for inspiration and learning.
Asset management example:
100% investment seperated into the following risk areas:
1) safety = "solid" hodl @ 50% of total investment (only very trusted and established projects with examples like: BTC, ETH, LTC,...)
2) low-medium risk = "mobile" long term trading, lending @ 30,9% of total investment
3) high risk = "aggressive" ICOs, unpopular altcoins, trading - buying underpriced / bleeding altcoins @ 19,1% of total investment
Each area in itself spreads the investment into different projects, depending on your preference / trust to avoid an "all in" situation in any of the 3 risk areas.
-This system transfers wealth from area 3 & 2 towards area 1, the safe pot, where you accumulate crypto wealth.
-You are not allowed to "refill" losses from area 2 or 3, you are forced to manage each area to gain profits with its own more detailed strategy.
-Profits from areas 2 & 3 are redestributed among the entire investment, while area 1 keeps beeing fat and greedy, sharing nothing for safety.
-Area 1 can cash out 10% after a gain of at least 20-35% for buying stuff (land, house,...), which prevents you from cashing out more than it actually accumulated.
This system works, if you have a working profit strategy, simply YOLO-ing will not be of much success.
This system works like a tree, spreading into finer parts of asset - risk management, where we have 3 main branches which follow a different strategy.
If you like, you can use the same system on each branch again as a pattern which repeats itself, like the branches of a tree do.
This diversification of your asset gives you the advantage of damage prevention from risk while also allowing for some profits to be achieved.
Ideally you even seperate these 3 branches into different wallets and keep them apart. This way you also see quickly, if your strategy in the risky branches 2 & 3 does or doesn't work.
You are forced to make profit with branches 2 & 3 to "keep them alive" and be able to redistribute the newly accumulated wealth.
Since all people are unique, you might want to change the %-amount of each of the 3 areas. The only way which makes sense to me is to increase the percentage of the safer branches and put less investment into area 3 or even area 2, which means to take even less risks, because I consider this strategy example as pretty aggressive and greedy imho.
Let me know if you have any ideas for improvement or if this helped you!
evdokimo
A solid strategy for me is to invest in one solid crypto and that is bitcoin only. Hold for it when market price goes high as it could really be a good profit in the near future. Just try to figure out all the bitcoin market price on when it will fall or goes up on its market price.