Cryptocurrency cycle: "Bitcoin-based" implementation method
The first stage:
When the cryptocurrency market is in a bear market, Bitcoin and many altcoins have sharply corrected, so the price of Bitcoin will become cheaper.
Operation logic:
When looking for relatively low Bitcoin prices, use fiat currency to buy Bitcoin. (It is recommended to use passive DCA to slowly accumulate Bitcoin positions in bear markets)
second stage:
When Bitcoin ushered in the first wave of surges and hit new highs in the early stages of the bull market, leeks poured in to buy Bitcoin. Bitcoin’s market share increases, and the value of altcoins drops significantly.
Operation logic:
Look for the right opportunity and exchange the expensive Bitcoin for the cheaper trending altcoin. (At this time, use part of the original Bitcoin position to exchange for promising copycats, ex:$ETH $SOL $ADA )
The third phase:
In the middle and late stages of the bull market, when Bitcoin stopped rising and began to consolidate in a range, the main control funds turned to trending altcoins, starting a period of skyrocketing altcoins.
Operation logic:
Exchange your expensive altcoins back for Bitcoin during periods when trending altcoin surges stall. (You will find that the number of Bitcoins will increase)
Situation A in the third stage
If the bull market continues, you can return to the second stage. After Bitcoin rises again, use Bitcoin to exchange for multiple other trending altcoins, and repeat the cycle.
Situation B in the third stage
At the tail end of a bull market, we no longer return to the second phase. Friends who don’t hold Bitcoin are asking about Bitcoin, and all the leeks are entering the cryptocurrency market.
The fourth stage:
Carry out DCA arbitrage at the high point of the bull market and accumulate cash positions until the bear market begins and repeat step one (pay attention to position control!!)
Position recommendation: Try to focus on more than 90% spot, 10% can be allocated to contracts, ex: 30% BTC 35% ETH 15~25% small coins 10% contracts
Position control! ! Position control! ! Position control! !
It’s very important to say it three times❗️
