Ideas For The Next Cycle Top

Staying Ahead Of The Pack

If you wish to capitalize and take full advantage of the next cycle peak, then you have to begin formulating strategies now. Being ahead of the market will often appear as being “out of touch”. When I look at many of the comments during the time I chose to short ETH at approximately $2K, it is apparent that many thought that I did not understand what was playing out. In hindsight, it is clear that $2K was the top of the “Merge” rally. This is exactly how it always happens, so if you think that the market will reach some sort of consensus at the next market peak, you are mistaken. There will be no overwhelming majority signaling a top. It will come and go, only to be realized much later. There is no anticipation, it’s as if the market enters into a mild state of coma. Market participants continue to function but seem to be unaware of the market conditions at play.

A Slight Shift

Shifting a significant allocation to stablecoins in May of 2021 turned out to be a lifesaver for me. I intend to repeat this strategy again. However, this time HBD is going to make up a significant portion of that allocation. This will not only be a way to lock in profits but also a way to earn a very high yield. This particular move has the potential to create a fairly significant form of passive income. If you think locking in value in a typical stablecoin is a good move, then consider how great it is if you are able to earn 20% on that stablecoin. I think Hive will eventually become a significant player in the world of Web 3 and so I am looking to increase my presence and allocation. There are a number of great opportunities within the ecosystem. Unlike, HBD, DeFi projects are best attained during bear markets. It makes way more sense to accumulate HBD when prices are high, so as to lock in the value of the Crypto you are exchanging it for. On the other hand, if you are going in with fiat, It’s always a good time!

New Trading Accounts

Another idea that I am likely to implement is to realize profits in the form of USD, and then allocate them to new trading accounts. Shorting from the peak of a market is a great move to make, you can simply just sit back and amass profits while the market unwinds. These accounts will be run on modest leverage, ultimately generating profits to utilize for accumulation at the bottom. If you have a fairly good handle on the markets, and technical analysis, you should be able to predict approximate levels. Exact levels are tricky to predict, but approximate levels are not that difficult to predict, but only for those who have knowledge and experience. So few are able to predict accurate levels because they lack the former.

Traditional Investments

Depending on how the economy is looking at this point, I may opt to make small investments in more traditional avenues. As I say, one cannot surmise at this stage of the game. However, I will evaluate more closer to the time. These are such turbulent and uncertain times, that it is extremely difficult to make investment decisions before the time. It’s always good to have as many income streams as possible.

Continuation

I will also be looking to strengthen and expand my current passive income mechanisms as well. This is something that can continue throughout both bull and bear markets. The generation of yield via HBD and trading will act as a good income source to further grow these existing mechanisms. It’s simple, keep building up that which is already working, and continue to build new mechanisms. At the end of the day, liquidity/cash flow is essential in the process of wealth creation.

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.

Comprehensive list of referral links for platforms & opportunities I utilize to generate daily Crypto income.

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HBD is on my mind for the next bear market as well. Curious to see how long it will take BTC to rebound and whether 2023 will be a bit more bullish.

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If we can have the final flush in 2022, I believe 2023 will lead to some sort of "boring stability" and stagflation. What I would anticipate is banks beginning to shudder, which would lead to accelerated Crypto adoption. If that then leads into the halving... it could be a very significant bull run indeed. Market needs to completely unwind, and then we need a banking crisis that sends a flood of citizens in the direction of Crypto...

Things look bad... but the story could change very rapidly for Crypto post 2023.

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What makes Hive powerful as compared to a lot of other cryptocurrencies is the ability to get rewarded. To your point of HBD, you are right about the appeal lacking with the price of Hive so low. However, the fact that people can load up by 50/50 rewards is a big help.

Can fill the bags will the bear is awake.

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Yeah, 50/50 is also a form of a hedge. It is however a good time to accumulate HIVE. I think that now, as well as the final quarter of 2022 could be a really great opportunity for accumulation...

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I find it very interesting about the fact where HBD is going to change a lot of facts about holding stable coins in wallet. Unlike USDT or BUSD a high yield can be obtained by just locking them for a period of 3 days. That is kinda great compared to many high risk yield protocols.

We only need little more focus and light from any major mainstream media/projects.

While currently playing the game of accumulation in this down market. Lets see where it takes me in the next bull cycle.

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You wrote:

When I look at many of the comments during the time I chose to short ETH at approximately $2K, it is apparent that many thought that I did not understand what was playing out. In hindsight, it is clear that $2K was the top of the “Merge” rally. This is exactly how it always happens, so if you think that the market will reach some sort of consensus at the next market peak, you are mistaken. There will be no overwhelming majority signaling a top. It will come and go, only to be realized much later.

I respect you making up your own mind. There rarely is consensus, and our educated opinions are just as valid as the next traders. Plus we should only risk our money when we are convinced personally.

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You wrote:

At the end of the day, liquidity/cash flow is essential in the process of wealth creation.

People can get into the HODL mindset, which I respect in selected instances, but I believe cash profit is a priority. I like to take profit, hodl with House money, and reinvest my capitol, increasing my streams of income. The beauty of DeFi is cash flow and to me in the bear market stables are King. But Stables must of course be chosen wisely, and DeFi projects chosen wisely.

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Profit creates further opportunities. I agree that hodling should be an active practice but definitely not everything. Once again, risk management and portfolio construction come into the picture.

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Having a strategy, following it through and having the cold blood needed to stay calm when the market does what it tends to do (basically screw you short term) is what differentiates a crypto adept and a rookie trader.


Great post and congrats on getting a decentralized curation vote this past week, keep this kind of posts coming!

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As long as your thesis is backed up with a pile of confluence, you simply stand your ground!

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