This is my cryptocurrency investment strategy

As I mentioned in my last post, my strategy is driven by FOMO.

Basically, I don’t want to miss out on the big gains that I think are to come within the crypto space.

This means that I don’t just want to hold Bitcoin. I want to hold a basket of cryptocurrencies.

Remember that I’m driven by FOMO. So what if Bitcoin goes up in the medium term by 200%. That would be great if I hold it. But what about if, in the same timeframe, other cryptocurrencies went up by 2000%? It happens. Well I’d be gutted obviously. Wouldn’t you be? I’d have the slowlane Bitcoin whilst other cryptos turned out to be fastlane.

Long or short?

Definitely long. Why would you go short on any cryptocurrencies after seeing their collective performance over the last few months. Anyone who went short without a stop loss would have been heavily punished. I wouldn’t even go short without very good reason in equities. For very good reason, think 2008 when everything was falling. That would be a fairly valid reason for going short on a market (not that I was short anything at the time).

Going short would also go against my reasons for investing: I believe that cryptocurrencies are going to rise. Maybe not all of them, but the best of them will rise.

Active or passive?

Pretty passive. Like I said in the last paragraph, I’m not going to be trading in and out nor am I going to be going short. This would go against my driver of FOMO. To take the first scenario, if I was trading in and out, there might be a day, where having exited (sold) my position to realise some gains, that that particular cryptocurrency popped upwards. I would be out of the potentially big move. I would have lost sight of the big picture, the overall plan, for just a bit of money and maybe the psychological thrill of being right. (But actually wrong)

Timeframe

Long term. I’m in this for the long haul. Bitcoin was a fraction of a dollar in 2008 when it started. Now it’s popped to USD 3,500. All my life, I’ve been an impatient investor/speculator. This is one thing I’m prepared to wait a long time for. I’m going to buy some cryptocurrencies, top up here and there, maybe buy more on the dips and then forget about it. I’m happy to wait years.

What cryptocurrencies am I going to buy?

I’ll answer this question in the next post.

In the meantime, let me know your cryptocurrency strategy in the comments below.