I was wondering what strategies you guys are using to figure out how much ADA you are targeting,if u are hodling.Like just accumulation of as much as you can,or dollar/cost averaging, maybe working out a target number based on what you think ADA could reach in the future e.g "I think ADA will reach $2 USD so l need half a mil."Or l think ADA will reach $2 USD so l convert $2 USD to my currency, therefore l want to accumulate X amount of ADA.Are you rolling the dice and selling high taking profit and buying more when it goes down?Be interesting to hear how people are accumulating.
In my case, it’s a bit of both of your examples. I have some target prices when I plan to take some profits, and the ending amount I would like to hit by then. From there, I worked out the amount of ADA I need, with the consideration of how much it will actually cost me in my local currency.
This is the first crypto I’m investing in. And I ended up liquidating a greater portion of my stock portfolio to build a position here. Our local stock market isn’t moving anywhere near the crypto markets right now…
I day trade in the traditional stock market and heavily invest in crypto as well (I don’t day trade crypto). The first and best piece of advice I can give you is to NEVER invest more than you can afford to loose. That is the first step to formulating a plan. Without knowing your financials (for general advice we don’t need them) I can give you advice based on how I invest in crypto (my strategy in crypto is not the exact same as the stock market).
My life and finances are stellar thanks to something called compounding interest. There are only a few crypto right now that allow proof of stake which rewards hodling with nice fat APY around 7-12%. BTC and ETH and all the other cryptos have their own risk/rewards but only provide value in the token itself and not by simply owning it (ETH is trying… keyword “Trying”).
So when I discovered Cardano I immediately saw the upside potential for investing and for long term stability and growth. I decided that if I were to obtain 1 million ADA and then stake it for years I could have enough to potentially retire before I hit 40. So I spent about $5,500 a few months ago and purchased around 130,000 ADA to start.
I then began dollar cost averaging which means that every week, or weeks depending on finances I would invest the same flat amount into Cardano regardless of its price. So I started purchasing about $1,000 a month of ADA at about $250 a week because that is what I could afford to loose and not be homeless.
It took me about 3 1/2 months (thanks to market crash and lowering the ADA price) with dollar cost averaging to hit my goal. Now I am where I want to be and I will be staking my ADA next month to earn compounding interest to grow my investment. I no longer need to purchase more because my staking will constantly generate new ADA into my account.
Here is the breakdown:
- Formulate an investment budget that you can afford without jeopardizing your lifestyle.
- Pick an end goal amount or dollar value (IE: I want 50,000 ADA or I want $100k worth of ADA ETC).
- Figure out if you will purchase weekly, bi-weekly or monthly and stick to it.
- Begin your dollar cost averaging and accumulation
- Stake when the mainnet goes live and continue to dollar cost average until you hit your base goal, compounding interest will be helping you achieve this even more quickly than if alone.
Lastly, set an exit strategy. I know Cardano will get into the $3-$5 range in a few years so I plan on evaluating my investments on June 16th and Dec 25th of each year and either selling a portion to fund projects or let the amount continue to accumulate. My wife and I have a dollar amount that we would sell ALL and then bug off for the rest of our lives. Having a plan helps keep us disciplined when the markets go fubar.
My Stock portfolio is up only 74% this year yet my Cardano holdings are at 223% as of today. Cardano has not only recovered its march lows but is at its highest value in a long while. My stocks are still under performing (not shocked) so that should let you know how well Cardano is doing in comparison.
Hopefully my short novel helped in some way!
Oh how I wish I looked into this crypto world a lot sooner… I got myself busy with stocks and forex in April and May. Made a little money there. But nowhere near my current Cardano and Band positions.
And I bought my first ADA’s on June 9 only…
Absolutely fantastic thx
Gee that takes some cahonas.Hope it works out.Thanks
Well, I’m not exactly new to trading…just new to crypto. Been in the stock and forex markets since 2008. Even got stuck in a huge stock position (relatively speaking) that, although didn’t actually lose me money, lost me a lot of time.
I’ve already heard of Bitcoin back then but I just brushed it aside. So when I look back to it now, I ask myself - just imagine if you had your money in Bitcoin all those years instead of these sleepy stocks.
But yeah, I guess experiences like this give you cahonas!
Yeah l owned a bar.ln 2013 a friend of mine came in and he was explaining to me about this “bitcoin”.He had a whole pile of it.l couldn’t understand what he was talking about so l too just didn’t act.But,it did make me aware of this cryptocurrency and 4 years later l was looking at all these various projects and the so called " Japanese Ethereum " twigged my interest. So l guess it has led to this today.We all arrive at our investments in different ways.We all come together here through various pathways.
Encouraging short summary of your investment strategy! Thanks for sharing.
Cardano undoubtedly is a good candidate for longterm investment, yet it is slow and steadily moving, obviously, due to its journey towards blockchain platform.
What other promising cryptos you have or target to invest. Appreciate if you can identify a few, low value, high return, short to medium term. Note: I am new to cryptos!
Oh,it is difficult to say,because honestly, l haven’t really researched any enough to name them specifically but if l was looking to invest l would apply the things l have learnt from following Cardano.A well funded project, with passion,belief, work ethic, transparency,great leadership,team and communication with investors/community,original ideas that can be applied in real world situations and appeal to big business,like verified tweets for Twitter that Charles Hoskinson mentioned the other day,the disruption of the subscription industry where individual articles can be purchased due to scalability rather than the whole magazine.Great marketing,ability to be top competitors in defi,smart contract strategies,credibility,reliability,ability to listen and learn and then figure out how to best impact a situation, a community, a country. Another thing about Cardano, they do not take shortcuts whether it is in their developments or seeking approval from government authorities etc They are ethical.When you find a project like that invest.When you find a leader that is willing,on top of enormous pressure and commitments, to always,get on social media and communicate with kings and paupers alike, to support the community in the way he does,you have found the right cryptos to invest in long term.
I’m a bit confused with your example.
If you invested $1000 per month for 3-1/2 months, that’s $3500
Even if you got a very good average price of $0.025, that’s 140K ADA.
With the 130K you started off with, it’s a total of 270K ADA.
Did you reduce your goal from 1MM ADA?
Thanks Anipruritus for your valuable comments. Noted with appreciation.