This is a brief explanation of what I am doing in the market this week. I will explain which tokens I am dollar-cost-averaging, as long as what I am selling also.
The Watch List
To start the week off on a good foot we need a watch list. I have way too many to count and sometimes it is hard to decide what to do with so many options and so little time. As I have discussed before, making a watch list of at least 5 tokens is very helpful for starting off and building a crypto portfolio. No one can make a watchlist for you, at this point if you have been around for a while on our site you will know we really encourage learning how to fish. Those who learn how to navigate crypto markets early will build a strong foundation. Giving a few token picks here and there can get people started, but those who learn how to buy into these watch lists with good timing and a level head will come out on top.
The list below is filtered by weekly gains/losses. Generally, we are buying into the big red dips on tokens. Ultra is a special token that has been steadily climbing since I started looking at it, I am doing something I rarely do with this token. I am dollar-cost-averaging it during its slow climb upward. Since Ultra aims to bring users and developers alike a working product for years to come, I believe people are buying into this token the way people would invest in a technology company (think Steam). As for how to pick what to buy next, this list is a list for me personally. I own ~30 different tokens, lists for people should vary based on their goals for the month or year. This list works for me because as the portfolio grows, I want exposure to larger market cap main ecosystem tokens that will bring safer more reliable gains. This list does not exclude the previously mentioned tokens because I already own comfortable positions in those projects. This is just what I am looking a this week. I do not expect these tokens to just pump in price tomorrow, I am solidifying my positions weeks to months ahead of time, this is how I invest.
Using this strategy, the most attractive buys for today are BAND, LINK, LUNA and DOT. Through this weekend I did add a fair amount of LUNA from some Harmony profits (remember I’ve owned Harmony all year). I also bought some DOT; I have not yet pulled the trigger on LINK or BAND but am watching them both closely. When JOE was around 4.5$ I did sell 20% of my holdings into stable coins on Avalanche. I also regularly earn USDC on Moon River, so I have cash flow on multiple chains to buy pegged assets. Avalanche and Moon River have token swapping platforms comparable to Uniswap. On these platforms (Trader JOE and Solarbeam) I can swap stable coins into DOT,Luna etc. but price exposure. Oasis I really wanted to start buying but it exploded in price too quickly with the Meta (Facebook) announcement. A token not on this watch list which I will provide as a little gem for loyal readers is Aavegotchi (GHST). This token is found on Kucoin and is now native to the Polygon blockchain, I have been buying it since it appeared in my November watch list article.
Bitcoin once again dropped to the 55k range, many panic sold alt coins at a rapid rate. These dips present great opportunities for dollar-cost-averaging. Another strategy would be to take some profit from your highest gainer into a red token on your watch list. The key is not to deploy all your capital at once. If you are interested in a token and have 1,000$, spend 250$ on 4 different occasions. Another method I really am trying to practice more is holding 10-12% of my total portfolio in stable coins to have buying power at the ready. These stable coins can be in any yielding platform you like. I prefer Terra LUNAs anchor protocol for 20% APR on UST. UST and native LUNA can be purchased directly on Kucoin. I cannot emphasize how many times I had stable coins and deployed them too quickly only to see an amazing opportunity on a token I want the following week. As always stay safe out there, this article is my opinion, not financial advice. Thank you for reading!