Episode-2844- Expert Council Q&A for 3-18-21 — 2 Comments

  1. Re: Crypto Bull Market

    Thanks for answering the question. Part of what makes this so tricky is trying to reconcile conventional trading & investing wisdom with the new & unique nature of Bitcoin and crypto. I feel caught between the “HODL no matter what!” true believers and the good quality (but more conventional) trading & investing advice that John Pugliano gives out. Both views have their merits, and I’m trying to find the right balance.

    Before this year I was planning to just steadily sell a bit here & there as it climbed, but if we’re going to see apeshit-level high prices and FOMO this year (which seems more likely now), there’s something to be said for taking a little extra profit to ride out the bear market that follows and have a bit extra left over to buy up more on the cheap. At the same time, with all the added stimulus and CB money-printing, it could be any bear market would be much shorter or shallower than previous cycles. Whatever I end up doing, I don’t see myself selling/moving more than half my portfolio (likely much less), and I’ll sell altcoins before selling BTC.

    In the meantime, doing my best to remain patient and channel my inner Vulcan… 😉

  2. If it helps anyone else, here are some of the questions I’m asking myself going forward and some rules I’m trying to operate by. I’ll post this on the Crypto group on MeWe too.

    Questions to ask during this bull run cycle:
    1) At what point are my crypto holdings as a percentage of total wealth “way too high”?
    2) At what price point am I willing to sell 10% of holdings? How about 25%? 50%???
    3) How much do I need to sell to pay for planned purchases or expenses for the next 2-3 years?
    4) How long am I willing to wait to spend some of my crypto for said planned purchases?
    5) Which crypto assets am I most and least willing to part with?

    Bull-run operating guidelines:
    1) For all cryptocurrencies I own, make sure I know WHY I own it, and don’t FOMO into a purchase blindly.
    2) Unless planning a imminent sales or trades, the majority of my crypto stays OFF of the exchanges.
    3) When selling my crypto, think of the sale in terms of the things I want to buy and expenses I need to pay, not in dollars or fiat.
    4) All other things being equal, sell the altcoins before thinking of touching my Bitcoin.
    5) Long-term capital gains are my friend. Short term capital gains?… not so much.
    6) Never make very large purchases OR sales in one day. Spread them out.
    7) Patience, patience, patience. Without clear signals or meeting pre-planned targets, sitting on my hands isn’t such a bad thing. I’m no day trader, so no sense in me pretending to be one.