Crypto Investment Strategy

With a "long" strategy is betting on rising prices. So if the price rises, you win. If the price falls, then you lose. In a "short" strategy, it is exactly the opposite, with falling prices you win and you lose with rising prices.

The picture below shows a schematic of a specific cycle in the crypto market. This consists of a strong bear market (red line), a consolidation (yellow line) and a bull market (green line). The bull market is much stronger than the bear market. One cycle has taken a total of one to four years. The blue circles represent optimal points for entry or exit into a long strategy or a short strategy.

EntryExitLongShort.png

The problem is that you usually do not hit the optimal point. Because you never know if it goes higher or lower in the short term. However, there are ways to approach the optimal point reasonably.

 

Please see the sections below to find out how a long strategy, a short strategy and when a change from long to short and vice versa can make sense.