How do you grow a crypto portfolio?

I believe the question is how to increase the number of coins in your possession without actually putting in more cash.
The answer is to sell every time the market is high and rebuy every time it dips. This will take a massive amount of skill and luck to be consistent. It is possible but not easy.
 
I have the same questions. It can be all so confusing… I suppose that’s part of the fun!
 
We really appreciate your well thought out response. Thank you for being a valuable asset to the pub.
 
I just wanted to check-in and see how you’re feeling about the responses you’ve received. ;)
 
Oh my god! Do you know how long that has taken to find that answer!..and so well put. Reaper you legend mate. I so understand that, I even copied that to my notes so I can refer back to it when I get confused. I just couldn’t see how I was gaining if i was losing total amount of coins, but now I understand. Value goes up which balances out you not having as many coins. Ah with this knowledge, I now know I can grow my portfolio and not have it stagnating and going nowhere. When do you take profit? For example, if my holdings go up 10% one day, would it make sense to take that 10% and put that into BTC? Thanks!
 
Hey Angela,
Start practicing with a small amount of money that you are willing to gamble with. Use the 30 day RSI indicator, it has been nearly flawless for me in indicating whether I should buy or sell something.
When the 30 day RSI enter overbought territory it’s usually a good idea to sell. I have watched coins enter this realm many times and each time it has dropped shortly thereafter.
Also, when I see a coin enter the oversold territory it has almost always corrected upward within 20 minutes.
Not only is the oversold indicator great for snatching up dips for long term holdings, it is great for swing trading because it is 90% likely to go up from there. Just try it out and do it until you are comfortable with a larger sum of money.
 
No problem.
Since HODLING can get boring at times it’s nice to have a small amount set aside for trading that can be exciting. Even if it’s only $100, you think, that could have been $10K on that swing you just did. Every trade gets you a little more skilled and more comfortable with price actions.
If you manage to pull off 10 swings, all profitable it’s quite the accomplishment no matter how much money is involved.
 
I don’t think it is wise to buy and sell too much. There are exceptions to the rule but
  1. Who has time for that
  2. I am paranoid about leaving coins on exchanges.
  3. If you are dealing with amounts over 10k i think you have to pay tax in some instances but im not sure
So I think checking the markets every few months and investing long term for huge gains (30x and beyond) is the sweet spot. Keep your eye off the charts for too long and you’ll miss winners but micromanage too much and you’re essentially day trading which few do well.
So this gets me to my point. If you want to accumulate coins you will have to be organized in your day to day life. Figure out how you could maximize your income and investible income. Say no to the trivial many for the critical few. Just my opinion here.
 
No worries @Leo_Beal
As for when to take profit, this is what @peter means by ‘have a plan’. When you decide to take profit is entirely up to you, but you need to decide before you buy whatevercoin, otherwise you run the risk of your emotions making the decision for you.
So, you might decide to take profit when your altcoin doubles in value (you see this called 2X), or maybe you decide to wait for 3X or even 30X. Whatever you decide, stick to your plan. Buy the whatevercoin, and when it reaches the goal you set, take the profit.
Of course, the value might still go up, and you may be thinking ‘damn, I could have made more if I waited’. True, but at that point you’d only sell when you feel like it’s a good time. What if you felt like it’s going to keep going up, but instead it crashes? Do you see? Now you’re trading using emotion, have no plan, and no real way to decide when to take the profit.
At least if you have a plan at the outset, and stick to that plan, you’ll make the profit that you planned to make. You may miss out on some value, but you could equally save yourself if the altcoin value crashed after you took profit.
Hope that made sense.
 
I myself choose to keep up to date on crypto news from day to day. For me it’s a hobby and I enjoy it. For others it may seem like work.
Although I am always up to date I rarely make trades based on my knowledge. I mainly HODL. Being up to date allows me to see dips and accumulate and if a coin I’m holding has some dire news I could get out quick but that’s very unlikely in the ones I have selected.
HODL long term while devouring all info possible.
 
Reaper absolutely spot on my friend, I really appreciate your help along with everyone else here. I will sit down today and work out some sort of plan to build my portfolio. Im currently invested in BTC,OMG,QTUM,LTC and thinking of getting into NEO and possibly CIVIC as a real long term hold coin and try to build up on all those positions over the next few years. Just a few final questions if you wouldn’t mind that would be fantastic!
  • How do I work out how much my coin has gone up by for the profit to take. Is it simply the equation of total holdings minus the percent it’s gone up by as to how much to take out of that holding?
  • How are people growing their portfolios at such a rapid rate for example ‘’ I had 8k and now it’s 80k in 6months’’… To grow my portfolio by taking profit in the coins I’m invested in is a long term play right? Would it not be better to say take the 10% your coin has gone up by weekly or so and invest that into BTC then to leave for a few months and then take the profit to do the same thing.
  • To keep track of how much your investments have gone up in certain coins, what do you use? I use Exodus wallet. Do you think it would make sense to rebalance my portfolio to even numbers so I can then clearly see the portfolio increase, and then be able to extract that to put elsewhere?
  • Finally the biggest problem Iv’e been facing is how do you increase your cash flow into your portfolio. Because lets say I have £400 a month to invest into crypto. Well once that’s invested I now no longer have ‘‘fresh’’ money to put in that month which means my portfolio could stagnate and not grow that month…You see what I mean?
All the very best, and please know I really appreciate it.
 
I currently only have BTC, but I’ll answer what I can:
  • I use google sheets to track my BTC value. I do all of my monthly budgeting in one document. This allows me to breakdown exactly how my paycheque is split up each month (bills, expenses, savings etc). On one tab I keep track of how much I’ve invested in £ for BTC. Sheets (or excel if you prefer to use that) allows you to do some cool stuff. Below is a screenshot of the crypto tab in my spreadsheet.

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Screen Shot 2017-10-18 at 10.10.27.jpg3332x1386 327 KB

So, spreadsheets allow you to use pre-defined functions (built in to the software) in a given cell that can do calculations for you. For example, the BTC chart at the bottom is generated by the function you can see at the top of the image (=SPARKLINE(GoogleFinance…). That function takes the values from cells A21, B21 and C21 (BTC, EUR, 14) and uses them in the function to generate the chart.
Cells E2, F2 and G2 show me how much my total investment is worth, and how much growth in £ and as a %. The growth as £ is just the worth - the total invested. The % is calculated with this formula: =((D2-E2)/D2)*-1
  • My guess is that people who have achieved large growth over the last 6 months have been lucky that various coins have seen exponential growth this year, and also some take trading seriously enough to put in a lot of time and effort to understand the market and trade a lot.
  • Whether or not you decide to take profit at 10% growth or not is entirely your call. This is ‘the plan’ I talked about in my last response. Make a plan for when you want to take profit, and stick to the plan!
  • Fresh money. So, Peter talks about not spending your bread. I think by this he means don’t spend your principal investment. So, if you’ve invested £100 of your fiat “real” money, you don’t ever want to spend that. You only want to take the profit. If you then inject another £100 of “real” money, this should be considered part of your principal. What this means for you is that should the coin you’ve invested in go up in value, you’ll make more profit. Percentage-wise you’ll make the same; if a coin goes up by 20%, you make twenty percent profit regardless of how much that actually is. For example, you invest £100 in BTC. BTC then goes up 20%, your investment is now worth £120. If you had invested £200, your investment would now be worth £240. In both cases you made 20% profit, but in the second example you had twice as much to begin with, so your profit is higher in value. To sum up, adding fresh money to your investment allows you to make more profit when your coins go up in value.
 
Awesome reaper, your a legend mate and I hope good Karma comes your way! That’s one hell of a answer seriously. It’s really appreciated, and I will re- read this again later until it becomes inprinted in my mind haha.
So the only way I can grow my portfolio then is to hope the coins iv’e invested in go up in value so I can the take profit. As once my ‘‘fresh’’ money goes into my portfolio each month i am then unable to grow it anymore by adding, and the only way i could is either hoping the coins raise in value or finding other ways generate more income to add to the portfolio…?
Reaper, I wish I could tip you man.
 
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